The short version
- A balance you don't recognize almost always comes from one of six things: a reassessment, a benefit overpayment, interest on an old balance, unpaid instalments, an old debt from another program, or someone else filing in your name.
- Start with the statement of account and the notices in My Account. Every amount on it traces back to a notice with a date.
- Interest on overdue tax runs daily, compounded, at 7% a year for this quarter. A small balance left alone doesn't stay small.
- Disagree? You have 90 days from the notice (or one year after the filing deadline, if later, for most tax assessments) to object.
- If a call or text says you owe, check My Account yourself before paying anything. CRA never demands payment by gift card, prepaid card, crypto or e-transfer.
CRA Says I Owe Money I Don't Owe
Finding a CRA balance you've never heard of is a special kind of Monday. The good news: CRA doesn't invent numbers. Every dollar on your account came from a notice somewhere, even if that notice went to an old address, or arrived in My Account while you were busy living your life. Find the notice and you've found the reason. Then you can decide whether to pay it, fix it or fight it.
Where Mystery Balances Come From
| Source | How it shows up | Read more |
|---|---|---|
| A reassessment of a past return | Notice of reassessment, often after a review letter you didn't answer | Notice of reassessment |
| Benefits paid that you weren't entitled to | Notice of redetermination for the child benefit or other credits | Benefit overpayments |
| Interest and penalties on an old balance | Arrears interest on the statement of account | Penalties and interest |
| Instalment interest | You were asked to pay instalments and didn't, or paid late | Tax instalments |
| Missed Home Buyers' Plan repayment | Added to income, so more tax | Home Buyers' Plan |
| Not enough tax withheld | Two jobs, pension, side income | Why do I owe tax? |
| A return filed in your name by someone else | Changes you didn't make, a refund you never got | Suspicious activity |
Have the notice that created the balance?
Upload it. The analyzer explains which line CRA changed, how it got to the amount, and whether the deadline to object has passed.
Five Steps to Find the Answer
- Open My Account, then "Account balance and statement of account." Note the tax year each amount belongs to.
- Open the notice for that year. Read the "explanation of changes". It names the line CRA changed and why.
- Check the mail section for a review letter or request for information you may have missed; see CRA review letters.
- Compare with your records. Did you claim that amount? Do you have the receipt CRA wanted?
- Decide: pay it, send the missing documents, or object. The notice of assessment analyzer helps with the reading part.
If You Think CRA Is Wrong
- Missing receipts? Send them; CRA often reverses a reassessment once it has the proof.
- Real disagreement? File a notice of objection by the deadline; the objection deadline calculator works out your date.
- Your own mistake? Fix it with change my return.
- Penalties from illness or a CRA error? Ask for taxpayer relief.
- Meanwhile, interest keeps running. Paying the amount you agree with stops interest on that part; overpaid amounts are refunded with interest if you win.
Sure the reassessment is wrong?
The CRA objection SmartFile reads your notice, works out your deadline, drafts your statement of facts and fills in form T400A for you to sign.
If It's Right but You Can't Pay
Call before collections calls you. CRA routinely agrees to a payment arrangement, and a debt you're paying is far less likely to become a bank freeze or garnishment. Debt line: 1-888-863-8657; other numbers are on how to contact CRA. More on CRA tax debt.
Unrecognized Balance Questions
Why does CRA say I owe money?
Usually because of a reassessment of a past return, a benefit overpayment, interest on an old balance, missed instalments, or too little tax withheld. Your statement of account in My Account shows the tax year, and the notice for that year explains the change.
How do I see what I owe CRA?
Sign in to My Account and open the account balance and statement of account, or call the automated TIPS line at 1-800-959-8281.
Can I dispute a CRA balance?
Yes, by filing a notice of objection within 90 days of the notice, or within one year of the filing deadline for that year if later, for most individual income tax assessments. Benefit redeterminations have a 90-day deadline.
Does CRA charge interest on what I owe?
Yes. Interest on overdue tax is compounded daily at the prescribed rate, currently 7% a year, and penalties can also apply.
How can I tell if a CRA debt message is a scam?
Check your balance yourself in My Account. CRA does not demand payment by Interac e-transfer, gift cards, prepaid cards or cryptocurrency, and does not threaten arrest.
Sources: CRA, Recognize a scam; Prescribed interest rates; Contact the CRA. Checked October 2026. The interest rate is set quarterly; the figure shown is from our rules file for the current period. Objection deadlines depend on the type of notice; see the linked pages.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.