Frequently asked questions about NETFILE -- Refund and Balance Due

1. How long will it take to get my refund?
2. What if I want to check the status of my refund?
3. I sent a payment the same day that I used the NETFILE service to file my tax return. I just got my Notice of Assessment and my payment isn't reflected on it. Why?
4. What if I have a balance owing?
5. Can I file my return early and pay later?
6. What if I do not have a Remittance Form?
7. I'm expecting a refund and my spouse has a balance due. The net difference is in our favour. Will the CRA send us the difference, or does my spouse still have to pay?
8. What penalties and interest do you charge?

1. How long will it take to get my refund?
   NETFILE allows the CRA to process your return much quicker, which means a faster refund. In most cases, with direct deposit, you can receive your refund in as little as eight business days, compared with four to six weeks for a paper return. Some exceptions apply. Please see our Web site at www.cra-arc.gc.ca/reviews/ for more information.
   
   
2. What if I want to check the status of my refund?
   You can visit My Account to get information about the status of your current-year refund. However, please wait at least eight business days after you filed your return before checking.
   
   
3. I sent a payment the same day that I used the NETFILE service to file my tax return. I just got my Notice of Assessment and my payment isn't reflected on it. Why?
   In most cases, income tax returns filed through NETFILE will usually be processed within two weeks, while payment processing may take longer. Your payment may not have been received and applied to your tax account before we issued your Notice of Assessment, especially if you did not select "I will make a payment within the next five days" in Step 3 - Balance due on the NETFILE transmission page.
   
   
4. What if I have a balance owing?
   If you owe money, you can still file your return using NETFILE.
   
   

   How to make a payment

   • Include your account number, which is your social insurance number.
   • If you make a payment with a cheque that your financial institution does not honour (including a cheque on which you put a "stop payment"), we will charge you a fee.

   Electronically

   You may be able to pay electronically using various options on the CRA's Web site, or your financial institution's telephone or Internet banking services. Most financial institutions allow you to schedule future-dated payments. See Make a payment or contact your financial institution.

   At your financial institution

   You can make your payment free of charge at your financial institution in Canada. Give the teller your completed remittance form or Form T7DR(A), which you can get from us. The teller will detach and keep the payment part of the remittance form, then stamp and return the rest to you for your records.

   By mail

   You can mail a cheque or money order made out to the Receiver General, along with your completed remittance form or Form T7DR(A) (which you can get from us) to:

   Canada Revenue Agency
   875 Heron Road
   Ottawa ON  K1A 1B1

   CRA accepts post-dated cheques.

5. Can I file my return early and pay later?
   Since the process of paying a balance due is separate from the filing of an electronic return, you can opt to file your return early and make a post-dated payment. There is no rule taxpayers must file their taxes and pay their taxes simultaneously. You can opt to file your return as early as February and you will not be charged interest on your balance owing as long as your payment is made on or before April 30.
   
   
6. What if I do not have a Remittance Form?
   You can call general enquiries at 1-800-959-8281 and ask for a personalized Remittance Form T7DR(A).
   
   
7. I'm expecting a refund and my spouse has a balance due. The net difference is in our favour. Will the CRA send us the difference, or does my spouse still have to pay?
   Each taxpayer must pay any amount due even if their spouse is expecting a higher refund than the amount due. To avoid any penalties, the balance due must be paid on or before April 30th.
   
   
8. What penalties and interest do you charge?
   Penalties
   If you owe tax for 2012, and do not file your return for 2012 within the specified dates we will charge you a late-filing penalty. The penalty is 5% of your 2012 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. Your late-filing penalty may be higher if we charged you a late-filing penalty on a return for any of the three previous years.
   
   

   Tax Tip
   Even if you cannot pay the full amount you owe on or before April 30, 2013, you can avoid the late-filing penalty by filing your return on time.

   
   Interest
   If you have a balance owing for 2012, we charge compound daily interest starting May 1, 2013, on any unpaid amounts owing for 2012. This includes any balance owing if we reassess your return. In addition, we will charge you interest on the penalties starting the day after your return is due.