A Canada RIT deposit stands for "Canada Refund Income Tax." It’s a refund sent to you by the CRA. Your tax return has been processed and they’ve found that they owe you money.
Sometimes also labeled "Canada RIT/RIF," this deposit is sent to your chequing account via direct deposit. RIT and RIF may be used interchangeably or together, but they mean the same thing.
Key Takeaways
- If you’ve received a Canada RIT/RIF deposit into your bank account, then the CRA has determined they owe you a refund.
- Several factors could make your tax return eligible for a refund, including which tax credits and deductions you qualified for.
- Refunds usually take 2 weeks to process if you filed online, and up to 8 weeks if you sent in your return through the mail.
- The CRA does not have a set date for sending Canada RIT deposits out
Why you got a Canada RIT deposit
Any Canadian who files an income tax return every year could be eligible for a Canada RIT deposit. The reasons why you received a refund are based on a number of factors, such as:
- How much you made last tax year
- How many tax deductions you qualified for
- How many tax credits you qualified for
At the basic level, your income puts you in a certain income tax bracket, which determines how much tax you owe at the end of each year. If you qualify for enough deductions and tax credits, you may offset the amount you owe – so much so that the CRA may owe YOU money.
And this happens more often than you think. In the 2024 tax filing season, more than 18 million Canadians received a tax refund, which averaged at $2,279 each.
For more information, see: Individual income tax return statistics for the 2024 tax-filing season.
Verify your Canada RIT deposit on your CRA My Account
Was your Canada RIT deposit amount not what you expected? You can easily see why the CRA may have made adjustments to your account by checking out your notice of assessment.
All you need to do is log into your CRA My Account and it should be one of the first things you see when you're brought to your overview page.
When are the Canada RIT dates?
There's actually no set date for Canada RIT payments, but the CRA does state that it aims to get refunds processed within 2 weeks after you submit your return online (or 8 weeks if you submit it through paper).
Other factors that can influence when you receive your refund include:
- When you submitted your tax return
- When the CRA evaluated your return
- Your method of payment
How to set up a Canada RIT direct deposit
Still receiving your tax refunds via cheque? You can sign up for direct deposit through the CRA instead.
You can sign up a number of ways:
- Through your bank
- On your CRA My Account
- Via the MyCRA app
- Over the phone (1-800-959-8281)
Some tax software may even let you do this while you're submitting your tax return for extra convenience.
Once that's done, you can look forward to a much more convenient and timely Canada RIT deposit next year (if you're eligible, of course).
What to do with your Canada RIT deposit
So now that you know that the mystery deposit is yours to spend, what should you do with it?
Well, if you want to really maximize your money, the best answer is to invest it. Throwing it into an investment account will mean that "free" money can now work extra hard towards your future, putting you one step closer to your goals.
Here are some ideas to best maximize your tax refund:
- Tax-Free Savings Account (TFSA): Money deposited into a TFSA is taxed, but any extra income earned on that initial deposit is tax-free. You can withdraw money from your TFSA at any time without penalty.
- Registered Retirement Savings Plan (RRSP): Money deposited into an RRSP is earmarked for your retirement. Any earnings on your initial deposit are tax-free, but withdrawals from your RRSP will be taxed.
- First Home Savings Account (FHSA): First-time home buyers can deposit a RIT into an FHSA, which allows tax-free deposits up to $40,000 to be put towards the purchase of your first home.
- Pay off debt: If you owe money, such as on a credit card or a high interest loan, use your Canada RIT to pay down those debts.
- Registered Education Savings Plan (RESP): Invest your RIT along with yearly contributions (up to $50,000 total) into an RESP; all contributions grow tax-free and can be used to help pay for your child’s post-secondary education.
- Support a charity: Contribute a portion of your RIT to a cause of your choice, and you may receive a charitable tax credit.
- Build an emergency fund: Deposit your RIT into a high-interest savings account in order to be prepared for the unexpected.
Government benefit labels
There are a few labels the government uses when they deposit money into your account. Here are some of the other ones and what they mean:
| Label | Details |
|---|---|
| Canada Fed | Payment from Canada child benefit, GST/HST tax credit, and/or Canada workers benefit. |
| Canada PRO | Payment from Ontario Trillium Benefit or the Alberta Child and Family Benefit. |
| Canada FPT | Payments from Canada child benefit, GST/HST payments, and/or provincial programs. |
| Canada GSL | Payments from the federal student aid program. |
FAQ
What is a Canada RIT deposit?
The Canada RIT deposit is a reimbursement issued by the Canada Revenue Agency. Receiving one in your bank account means the CRA has completed its assessment of your tax return and determined you are eligible for a refund.
What is RIT/RIF in Canada?
A deposit labelled Canada RIT/RIF is the same thing as one labelled Canada RIT – it's a direct deposit from the CRA for your Canada tax return. These acronyms are used interchangeably.
What does Canada RIT stand for?
Canada RIT stands for Canada Refund Income Tax.
Why is the Canada RIT deposit more than expected?
Based on the CRA's evaluation of your tax return, they’ve determined that you’re owed money. This could be a result of overpaying on taxes, or because you’ve qualified for enough tax credits and deductions to offset the amount you owe.
Is my Canada RIT deposit a mistake from the CRA?
Likely not. The CRA will deposit a Canada RIT into your account if you overpaid on your income tax, or you are eligible for tax deductions or credits.
Is my Canada RIT taxable?
Since an RIT is not considered income, it will not be taxed.
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