# My mistake or CRA's mistake?



## j.dust42 (Mar 27, 2015)

Hello everyone, 

I need some help or advice understating this year tax return as I noticed some inconsistencies. 

Last week I filed my tax return for 2014 online. 

One day later I noticed that I did not include my RRSP contributions for the first 60 days of 2015, I only included the total for 2014. 

I read that once my NETFILE has been submitted there is no option to submit a new one, the only alternative is to make changes straight from the CRA website; changes were made only to my RRSP's contributions. 

With the inclusion of my RRSP's contribution for the first 60 days, my return went from $560 to $780 according to the online tax filling website. 

Last night I saw that my return was re-assesd and I would receive a refund of $220.

I ran my numbers on two different websites that offer tax filling services, both of them showed a total refund of $780. Information I used was a single T4 and statements from RRSP's. I double checked the numbers from my T4 with the T4 displayed on My CRA account and they match.

When looking at my 2014 reassessment file, dated April 02 2015, I noticed that not only my RRSP's contributions have changed, which I did (lines 208 & 245), but also Net Federal tax (420), Provincial Tax (428) and Total Payable (453) have changed. The revised amount on lines 420, 428 and 453 is less than the amount on previous assessment. 

Line 420 is $164 less...
Line 428 is $57 less...
Line 453 is $222 less...

So now I am completely confused and have no idea why these changed. For the last 4 years I've been doing my taxes online and the final number, wether is owing or a refund, has ALWAYS been accurate. 

Why would two different websites show exactly the same amount of refund, but CRA shows something different? Why the changes on lines 420, 428, 453?

Your help is greatly appreciated.

Thank you for your time.


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## OptsyEagle (Nov 29, 2009)

read the notice of assessment. They should identify where the discrepancies and where they got their numbers from.


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## j.dust42 (Mar 27, 2015)

OptsyEagle said:


> read the notice of assessment. They should identify where the discrepancies and where they got their numbers from.


Hi OptsyEagle, thanks for your response.

I am having some trouble finding that information. I can't see where they got their numbers from, I just see discrepancies of what I changed (RRSP's contributions) and also discrepancies on what they changed. Maybe I am looking at the wrong place and I can't seem to find how to add images from my computer to show you exactly what I am looking at..tried URL but preview does not show them.

I went to My CRA, Tax returns tab, view returns of notice of assessments and reassessments, 2014 reassessed.


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## lb71 (Apr 3, 2009)

j.dust42 said:


> With the inclusion of my RRSP's contribution for the first 60 days, my return went from $560 to $780 according to the online tax filling website.
> 
> Last night I saw that my return was re-assesd and I would receive a refund of $220.


Could it be that the reassessment amount of 220 is the difference between your return and your reassement (780-560)? That is, your return generated a refund of $560, and your reassessment generated a refund of $780, with the balance being $220.


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## OptsyEagle (Nov 29, 2009)

OK. Maybe you are not understanding what is happening with the way you are taxed or I am not understanding your problem. You said that you filed your return and then noticed that you left out an RRSP receipt. When you included the receipt, your tax refund increased by $220.

You then post a question here, that CRA has reassessed your tax return and now you are wondering why your federal and provincial taxes and total payable (which is the addition of your federal and provincial taxes) have been reduced by around $220.

That is how a refund is increased, by reducing the provincial and federal taxes that are payable. When this happens, since your tax withheld has not changed your refund will increase by $220. That is what you expected to happen with the extra RRSP receipt and that is what has happened.

So do you still have a question here or am I missing the question your are asking.

As for the $2 difference. That is probably some rounding error or perhaps you entered one digit wrong on a T-slip or something like that. Who knows, who cares. You're up a cup of coffee.


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## j.dust42 (Mar 27, 2015)

Thank you for your time and patience



OptsyEagle said:


> ...You said that you filed your return and then noticed that you left out an RRSP receipt.


That is correct, when doing that it showed a refund of $560 and then I submitted my NET file.



OptsyEagle said:


> When you included the receipt, your tax refund increased by $220.


Correct, so now we should be looking at a refund of $780. However the main page of CRA's MyAccount, says:"Your 2014 return was reassessed and a refund of $220 will be deposited directly into your bank account"
The reassessment document also shows:
_Final Balance for amount on previous assessment $560
Final Balance for revised amount $220_
The way I see it, and I might be wrong, is that instead of getting a refund for $560 I will now be getting a refund for $220.





OptsyEagle said:


> ...CRA has reassessed your tax return and now you are wondering why your federal and provincial taxes and total payable (which is the addition of your federal and provincial taxes) have been reduced by around $220.
> 
> That is how a refund is increased, by reducing the provincial and federal taxes that are payable. When this happens, since your tax withheld has not changed your refund will increase by $220. That is what you expected to happen with the extra RRSP receipt and that is what has happened.


I see, so then my refund will increase by $220. In that case, will it be safe to me to say that I will be getting a deposit of $560 from the first assessment, and then an additional $220 from the reassessment? The reason for my confusion is what CRA's my account says about getting a total of $220 when I haven't received the first $560.



OptsyEagle said:


> As for the $2 difference. That is probably some rounding error or perhaps you entered one digit wrong on a T-slip or something like that. Who knows, who cares. You're up a cup of coffee.


Yes, for this thread I round up the 560 and 220 instead of putting the correct amount with decimals.


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## j.dust42 (Mar 27, 2015)

lb71 said:


> Could it be that the reassessment amount of 220 is the difference between your return and your reassement (780-560)? That is, your return generated a refund of $560, and your reassessment generated a refund of $780, with the balance being $220.



lb71 thanks for your reply.

I wonder if I will be getting to separate deposits, as CRA says that I'll be getting a refund of $220 for my 2014 reassessment and maybe adding to the $560 from the first assessment.


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## Eclectic12 (Oct 20, 2010)

j.dust42 said:


> ... Last night I saw that my return was re-assesd and I would receive a refund of $220.
> 
> I ran my numbers on two different websites that offer tax filling services, both of them showed a total refund of $780. Information I used was a single T4 and statements from RRSP's. I double checked the numbers from my T4 with the T4 displayed on My CRA account and they match.


What was the first NOA's total? Was it a refund and lower than the second one? 

The NOA's I receive in the mail after netfiling usually have some key numbers (identified by the return number) and any changed numbers, with comments on the bottom. 




j.dust42 said:


> ... When looking at my 2014 reassessment file, dated April 02 2015, I noticed that not only my RRSP's contributions have changed, which I did (lines 208 & 245), but also Net Federal tax (420), Provincial Tax (428) and Total Payable (453) have changed. The revised amount on lines 420, 428 and 453 is less than the amount on previous assessment ...
> 
> So now I am completely confused and have no idea why these changed.


Really? 

It seems you filed a change to report the first 60 days 2015 RRSP contributions *and* deducted them from income in tax year 2014 yet you are puzzled that that after the income has been reduced, the total taxes based on that income has dropped? Isn't that the point of deducting RRSP contributions? 

A larger "RRSP deduction" (line 208) reduces the "net income before adjustments" line 234. All the intermediate steps will have a lower number so that "taxable income" line 260 is lower. Lower taxable income means lower Federal/Provincial/Total taxes. Don't forget that this is the total taxes ... the taxes that your employer withheld do not come into play until later.

So if the change was to report the 2015 RRSP contribution, *without* deducting them in the 2014 tax year ... then the mentioned lines should stay the same and "Your unused RRSP contributions available to carry forward to a future year" schedule 7 line 17 should have the 2015 first 60 days contributions number in it, as should the NOA in the "RRSP Deduction Limit" section.


Did the change include deducting the 2015 RRSP contributions on the 2014 tax return?




j.dust42 said:


> ... Why would two different websites show exactly the same amount of refund, but CRA shows something different?


The web sites don't know that this is a change so they are reporting what would have happened without a change.

My guess is that the first NOA has the first refund, which may already have been sent via EFT (or been requested) and second NOA is showing the additional refund that is coming later.

What does the first NOA say for "refund or owing"? Have you received that money yet in your bank account?

Cheers


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## Eclectic12 (Oct 20, 2010)

j.dust42 said:


> ... I wonder if I will be getting to separate deposits, as CRA says that I'll be getting a refund of $220 for my 2014 reassessment and maybe adding to the $560 from the first assessment.


I think you'll see a refund of $560 show up and a while later, a second refund of $220. This is similar to the old days of receiving a cheque for $560, filing an adjustment two months later and then receiving a second cheque for $220.

As fast as EFT transfers are ... after a certain point, it's more work to pull it back than to send a second one.


If it wasn't the busy season for CRA, I'd say call CRA and get them to confirm.


Cheers


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## j.dust42 (Mar 27, 2015)

Eclectic12 said:


> What was the first NOA's total? Was it a refund and lower than the second one?
> 
> The NOA's I receive in the mail after netfiling usually have some key numbers (identified by the return number) and any changed numbers, with comments on the bottom.


The first NOA shows a refund for $560, no comments on the bottom.




Eclectic12 said:


> It seems you filed a change to report the first 60 days 2015 RRSP contributions *and* deducted them from income in tax year 2014 yet you are puzzled that that after the income has been reduced, the total taxes based on that income has dropped?


This is exactly why I ask because I very little and poor understanding of the topic 




Eclectic12 said:


> A larger "RRSP deduction" (line 208) reduces the "net income before adjustments" line 234. All the intermediate steps will have a lower number so that "taxable income" line 260 is lower. Lower taxable income means lower Federal/Provincial/Total taxes. Don't forget that this is the total taxes ... the taxes that your employer withheld do not come into play until later.


Thanks for explaining.




Eclectic12 said:


> Did the change include deducting the 2015 RRSP contributions on the 2014 tax return?


That is correct.




Eclectic12 said:


> What does the first NOA say for "refund or owing"? Have you received that money yet in your bank account?


Refund, and no I haven't received any yet.


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## j.dust42 (Mar 27, 2015)

Eclectic12 said:


> I think you'll see a refund of $560 show up and a while later, a second refund of $220


That is what I'm thinking



Eclectic12 said:


> If it wasn't the busy season for CRA, I'd say call CRA and get them to confirm.


I did try calling but they are not working today because of the holiday.

Anyways, thank you and everyone who replied to this thread. Once I receive my refund or get in touch with CRA I will come back and update.


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## lb71 (Apr 3, 2009)

What holiday? It's not a federal holiday, so shouldn't the 800 number work?

I think you'll be getting two refunds totally $780. Let us know the outcome.


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## OptsyEagle (Nov 29, 2009)

Yeah, I wouldn't worry about calling them just yet. Give it a week or so to see what shows up in your bank account. Trying to get hold of a CRA person at this time of year will probably take away more of your life then you might want to allocate to it. You never get that refunded. lol.

You have all the numbers so there is really no hurry and it looks like you have confirmed that there will be two refunds issued, although don't expect them to show up on the same day.


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## j.dust42 (Mar 27, 2015)

lb71 said:


> What holiday? It's not a federal holiday, so shouldn't the 800 number work?
> 
> I think you'll be getting two refunds totally $780. Let us know the outcome.


That is what I thought, but I called them last Friday (27th) at around 9 am and got a message about outside office hours during weekends and holidays or something like that.

Anyways, I just wanted to give you guys an update.

I got two refunds on two different days for a total of $780 approx 

Thanks everyone for your posts.


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## WiseOwl (Jan 1, 2015)

CRA never makes mistakes.









Oh, sorry. I guess April Fool's was yesterday. I'm a day late.


On a serious note, glad to hear it all worked out for you.


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