Why is my tax refund lower than expected?

Every year, many people are surprised by receiving a smaller-than-expected tax refund… or even no refund at all. It's normal to wonder, but in most cases, there's a simple, logical explanation .

Here are the most common reasons, and how to avoid unpleasant surprises next year.

📬 The Revenue Agency verifies all declarations

When you submit your return, the CRA and Revenu Québec automatically verify it . If any information is missing or appears inaccurate, they can:

• adjust your refund

• refuse certain credits or deductions

• delay the processing of your file

✅ This is why it is essential to provide all your slips and documents from the start.

❌ Common mistakes or omissions

Here are some reasons for a reduced refund:

• A forgotten income slip (e.g., from a previous job)

• Non-eligible deducted expenses

• An undeclared change in your family situation

• An error in the amount of a claimed credit

• Amounts already repaid in advance (e.g.: credits for TPS or solidarity)

📌 Rest assured: these adjustments are common and do not mean that you have filed your return incorrectly.

💳 You may have a tax debt

If you already owed money to the CRA or Revenu Québec (old balance, missing contributions, etc.), they can take part or all of your refund to repay this debt.

🧾 You may not have paid enough tax

If you are self-employed , or have multiple sources of income, it is possible that little or no tax was withheld at source. In this case, the tax payable may reduce or even cancel out your refund.

🛠️ How to avoid surprises next year?

Here are some practical tips:

• Keep all your T4, T5, Relevé 1 slips, etc.

• Inform your tax preparer of any changes in your circumstances

• Keep your payments up to date if you are self-employed

• Request an estimate before sending your declaration

🤝 Need help seeing things more clearly?

At Ana Ramirez Inc. , we take the time to explain every detail of your situation.
Did you receive a different assessment notice than you expected? We can review it together to help you understand.

➡️ Make an appointment with us for a personalized consultation, in French, English or Spanish.