Why Is My Tax Refund Smaller Than Expected?
Why CRA reduced or kept part of your tax refund, and what you can do about it.
The short version
- A smaller refund has two possible causes: CRA changed your return, or CRA kept some of the refund to pay a debt.
- Your notice of assessment says which. Read the “explanation of changes” and the account summary.
- CRA can apply a refund to a CRA balance, and to other government debts such as student loans, EI or social assistance overpayments, immigration loans and training allowance overpayments, plus family support orders.
- If CRA changed the return and you disagree, you have a deadline to object. If you just forgot something, change the return.
- Refunds of $2 or less aren't paid at all. CRA keeps your toonie.
Why Is My Tax Refund Smaller Than Expected?
Your software said $2,140. The deposit says $610. Before assuming CRA has a personal grudge, open the notice of assessment. The difference is almost always explained there in one line, though not always in plain English.
Can't make sense of it? Upload the notice to the tax document analyzer, and it tells you which line changed and why.
Reason 1: CRA Changed Your Return
Look for the “explanation of changes.” The usual suspects:
| What changed | Typical cause |
|---|---|
| Income went up | A slip CRA has that your return didn't: a second T4, a T4A, a T5. See missing T4. |
| RRSP deduction reduced | You deducted more than the limit on your last notice, or contributions weren't on a receipt. |
| A credit reduced or removed | Medical expenses over the wrong 12 months, a dependant who didn't qualify, a tuition amount that didn't match the T2202. |
| A carryforward corrected | Unused tuition or capital losses that didn't match CRA's records. |
| Arithmetic or transfer errors | More common on paper returns. |
The notice walk-through is on notice of assessment explained. If CRA is right, accept it and fix the habit. If CRA is missing a receipt, send it. If CRA is wrong on the facts or the rules, file an objection: the deadline is the later of 90 days after the notice or one year after the filing due date.
Disagree with CRA? File the objection properly
The Objection Pack reads your notice, works out your deadline, drafts your statement of facts and fills in form T400A for you to sign.
Reason 2: CRA Kept Some of It to Pay a Debt
CRA can apply all or part of a refund to:
- A balance owing with CRA, for any year, including GST/HST or payroll if you run a business.
- An overpayment of benefits, such as the Canada Child Benefit or the Canada Groceries and Essentials Benefit (formerly the GST/HST credit).
- Other federal, provincial or territorial debts, such as Canada student loans, Employment Insurance or social assistance overpayments, immigration loans and training allowance overpayments.
- A family support garnishment order.
This is called an offset. The notice, or a separate letter, says how much went where and names the program that got it. That name matters, because it tells you who to call.
Who to Call About the Debt
CRA runs the collections lines for most of these, and each debt has its own number. Calling the general line gets you transferred, eventually. These are CRA's debt collection numbers, Monday to Friday, 8 a.m. to 8 p.m. Eastern unless noted:
| The money went to | Call |
|---|---|
| Income tax you owe, or any other personal CRA debt | 1-888-863-8657 |
| A child or family benefit overpayment (Canada child benefit, Groceries and Essentials Benefit) | 1-888-863-8662 |
| An EI or CPP overpayment, a Canada Student Loan or a Canada Apprentice Loan | 1-866-864-5823 |
| CERB you got through Service Canada | 1-866-864-5823 |
| CERB or another COVID-19 benefit you got through CRA | 1-833-253-7615 (8 a.m. to 4 p.m. your local time) |
| A family support order | Your provincial or territorial maintenance enforcement program (in Ontario, the Family Responsibility Office) |
| A provincial debt, such as a social assistance overpayment | The provincial program named in the letter |
Calling from outside Canada and the U.S.? Use 613-221-3002 for tax and benefit debts, or 613-221-3004 for EI, CPP, student loans and Service Canada CERB. If you already have a letter from a collections officer, skip the table and call the number on the letter.
What CRA Won't Take
Some good news. CRA does not automatically apply child benefits, federal or provincial, or COVID-19 benefit payments to a debt. Your tax refund and credits such as the Groceries and Essentials Benefit are fair game; your monthly child benefit is not. That is CRA's own rule, set out on its offset page. (A child benefit overpayment is different: CRA recovers that from your future child benefit payments.)
If You Think the Debt Is Wrong
CRA collects the money, but it usually didn't decide the amount. The program that created the debt did, so that is where the argument goes. For an EI or CPP overpayment that is Service Canada. For support arrears, it is the maintenance enforcement program; Justice Canada's page on federal support enforcement explains how refunds get taken for support, and suggests legal advice if you think it is wrong. If the debt is a CRA tax balance from a reassessment, your objection rights apply, with a deadline. And if you simply can't pay the rest, a payment arrangement stops things from getting worse. More on the bigger picture in CRA tax problems.
Reason 3: Your Software Was Too Optimistic
The software calculates from what you typed. Common gaps between its number and CRA's:
- A slip entered twice, or not at all.
- Actual dividends entered instead of taxable amounts (see T5 slip explained).
- A credit claimed by both spouses.
- Provincial credits estimated on the wrong income.
Run the return through the income tax calculator as a sanity check. If the two numbers are far apart, something is missing. Better still, Return Check compares the return with your slips before you file.
Not sure which reason applies to you?
Paste the explanation of changes or describe what happened. The assistant tells you whether it's a CRA change or an offset, and what you can do about it.
What to Do Next
- Find the cause on the notice: a change, or an offset.
- Agree? Nothing to do. Next year, check before filing.
- Missed a claim yourself? Change your return.
- CRA got it wrong? Object before the deadline; see notice of reassessment: what to do.
- Refund just late, not smaller? See where is my CRA tax refund.
Reduced Refund Questions
Why did CRA reduce my tax refund?
Either CRA changed your return, for example by adding a slip you missed or reducing a claim, or CRA applied part of the refund to a debt. The notice of assessment explains which.
What debts can CRA take from my tax refund?
A balance owing with CRA, benefit overpayments, and other federal, provincial or territorial debts such as student loans, EI or social assistance overpayments, immigration loans, training allowance overpayments, and family support garnishment orders.
Can I dispute a reduced refund?
If CRA changed your return and you disagree, you can file a notice of objection by the later of 90 days after the notice or one year after the filing due date. If you missed a claim yourself, request a change to your return.
Why didn't I get a refund of $1.50?
CRA does not issue refunds of $2 or less.
Who do I call if CRA kept my refund for a debt?
Use the number for that debt: 1-888-863-8657 for a tax or other personal CRA debt, 1-888-863-8662 for a child or family benefit overpayment, and 1-866-864-5823 for EI, CPP, Canada Student Loans or Service Canada CERB. For a family support order, contact your provincial maintenance enforcement program.
Can CRA take my child benefit to pay a debt?
Not automatically. CRA does not apply federal or provincial child benefits, or COVID-19 benefit payments, to other debts. It can apply your tax refund and credits such as the Groceries and Essentials Benefit.
Sources: CRA, Tax refunds; After sending us your tax return; Common adjustments; P148 Resolving your dispute. Checked October 2026. Where offset debts are disputed depends on the department that is owed.
Last reviewed October 11, 2026 against CRA and Government of Canada sources. How we check our facts.