You check your bank account and spot a credit you didn't expect, labelled something like "Canada RIT/RIF." It arrived by direct deposit from the Canada Revenue Agency (CRA), and it's usually good news.
Below, we cover what the deposit is, why you got it, when it arrives, whether it's taxable, and how to confirm the amount.
What is a Canada RIT/RIF deposit?
A Canada RIT/RIF deposit is a refund of income tax the Canada Revenue Agency (CRA) pays you after assessing your tax return. RIT stands for refund of income tax, and some banks display the same refund as RIF on your statement. In short, it's money you overpaid during the year coming back to you.
Why did I get a Canada RIT/RIF deposit?
Receiving this deposit means the CRA assessed your return and found you paid more tax than you owed. It's a legitimate refund, not a scam, an audit, or a mistake you need to worry about.
A few common reasons show up:
Overpaid tax through your paycheque: your employer withheld more tax than you ultimately owed for the year.
Credits and deductions: claims such as a Registered Retirement Savings Plan (RRSP) contribution, tuition, or childcare expenses can lower your tax and create a refund.
A reassessment: the CRA adjusted a past return and returned money it now owes you.
Who is eligible for a Canada RIT/RIF refund?
Anyone who files a Canadian tax return and either overpaid tax or qualified for refundable credits can receive this refund. Corporations can also receive refunds of overpaid corporate income tax.
Two details are worth knowing. The CRA may apply your refund to outstanding government debts before paying the rest. Refunds of $2 or less aren't issued.
Canada RIT vs. Canada RIF: the difference
Here's the short version: RIT and RIF refer to the same thing, a refund of income tax. The label simply varies by financial institution, so one bank's RIT is another's RIF.
That RIF label is unrelated to a Registered Retirement Income Fund (RRIF), which is spelled with two R's. A RRIF is a separate registered plan you draw retirement income from, and those withdrawals are taxable.
When are Canada RIT/RIF deposits paid?
The CRA publishes service standards that describe how quickly it aims to assess returns. These are targets, not guarantees.
For its 2025-26 service standards, the CRA's targets are:
Electronically filed returns: returns sent through NETFILE or EFILE are assessed within 2 weeks, a target the CRA aims to meet about 95% of the time..
Paper returns: mailed returns are assessed within 12 weeks, a target met about 85% of the time.
Actual timing can be longer if your return is selected for review. Deposits can also appear outside tax season after a reassessment.
Is a Canada RIT/RIF deposit taxable?
No, a refund of income tax is not taxable. It's your own overpaid money coming back to you, not new income. You don't repay it when it matches your assessment.
There's one exception: if the CRA pays you interest on a delayed refund, that interest is taxable. You must report it as income in the year you receive it.
How to check your Canada RIT/RIF deposit
To confirm the amount, sign in to CRA My Account and review your Notice of Assessment (NOA). It shows the refund amount the CRA calculated. If you'd rather wait, the CRA mails the NOA to you as well.
If the deposit doesn't match your NOA, contact the CRA before spending it.
How RIT compares to other CRA deposits
Deposit | What it is | Taxable? |
|---|---|---|
| Refund of income tax (RIT/RIF) | A return of income tax you overpaid during the year. | No, though interest on a delayed refund is taxable. |
| Canada Groceries and Essentials Benefit (CGEB) | A quarterly, tax-free payment that helps offset goods and services tax and harmonized sales tax (GST/HST); it replaced the GST/HST credit in 2026. | No. |
| Canada Child Benefit (CCB) | A monthly payment that helps with the cost of raising children. | No. |
Some banks display CRA payments as "EFT Credit Canada" or "Canada Fed Deposit." Those labels reflect how your institution shows the transfer, not an official CRA term. A "Canada Fed" deposit can cover various federal benefits, not only refunds.
What to do with your Canada RIT/RIF refund
A refund can feel like a windfall, though it's really money you set aside during the year. How you use it is a personal decision, and there's no single right answer.
Some common options include:
Saving it: setting the money aside for an emergency fund or a short-term goal.
Paying down debt: putting it toward a credit card balance, a loan, or other debt.
Contributing to a registered account: making an RRSP contribution or adding to a Tax-Free Savings Account (TFSA).
If you're weighing the two, you can compare an RRSP and a TFSA before deciding. Whatever you choose, it helps to confirm the amount matches your assessment before spending it.
