Why did CRA keep my refund instead of depositing it?

Arsen Accounting Services · Question 106 · Sources checked October 29, 2026

Browse cra problems and filing →

A refund shown on your assessment may be used to pay an outstanding government debt. CRA calls this an offset or set-off. The absence of a deposit therefore does not always mean the return was rejected or the refund was lost.

Read the account transactions

CRA may apply refunds and certain credits or benefits against tax debts or other eligible government debts. Its guidance includes examples such as student loans and benefit overpayments. Different payments have different protections and offset rules; do not assume every benefit is treated alike.

Check the notice explaining the debt and identify the program responsible. CRA's offset guidance directs taxpayers to contact that program about the underlying amount. A dispute about the original debt is different from tracing where a refund was applied.

Official guidance: [1], [2].

A simple reconciliation

Suppose your assessment shows a $1,400 refund and your bank receives $500. Look for a $900 offset or other account transaction. This is an illustration of how to reconcile the records, not evidence that a particular debt or offset is correct.

Gather the right documents

• Your assessment showing the refund calculation.
• CRA account transactions around the assessment date.
• Any notice of debt or benefit overpayment.
• Proof of payments or a dispute already submitted.

Ask for clarification when the accounts do not reconcile, and keep the response with your return. If you are arranging payment of another balance, disclose the offset so that payments are not planned using money already applied elsewhere. Do not count on the full refund for a purchase until you have checked the assessed amount and its actual allocation.