After you file your personal tax return in Canada, the Canada Revenue Agency sends you an official confirmation of how they processed your return. This document — the Notice of Assessment (NOA) — is one of the most important tax documents you will receive each year, yet many Canadians glance at the refund figure and file it away without reading the rest. That approach can cost you money. Your NOA contains critical information about your RRSP contribution room, carryforward balances, and whether CRA agrees with what you filed.
A Notice of Assessment is the document CRA sends after processing your T1 personal income tax return. It confirms that CRA has received and processed your return, and it shows CRA's own calculation of your taxes for the year — which may or may not match what you submitted. The NOA is not simply an acknowledgement; it is CRA's formal position on your tax situation for that filing year.
If you filed electronically through NETFILE or an EFILE-authorized software provider, you typically receive your NOA within two weeks of CRA processing your return. Paper filers should expect to wait eight weeks or more. The NOA becomes available immediately through CRA My Account once it is issued, and CRA also mails a copy to the address on file. If you filed through tax software, your NOA may be delivered directly through that software as well.
Reading your NOA properly means understanding what each section tells you. There are several areas to review carefully every year.
This section shows CRA's calculation of your total income, deductions, credits, and taxes payable. Compare these figures line by line against what you submitted. If anything differs, CRA will typically explain why — but not always. Even a small discrepancy can indicate that CRA adjusted a deduction or added income from a third-party slip they received.
Your account balance tells you whether you owe money, are receiving a refund, or have a zero balance. If you owe, the NOA will include a payment due date. If you are owed a refund and have not yet received it, this section confirms the amount CRA owes you.
This is the figure many Canadians overlook — and ignoring it leads to costly overcontribution penalties. Your NOA shows your RRSP deduction limit for the following tax year, not the current one. For example, the NOA you receive after filing your 2024 return shows your 2025 RRSP deduction limit.
Any RRSP contribution room you did not use in prior years accumulates and carries forward indefinitely. Your NOA confirms exactly how much unused room you have available immediately, before adding the new room earned for the coming year.
If you have unused tuition credits from post-secondary education that you did not fully apply in a prior year, your NOA tracks those amounts. These carryforwards can be applied against future tax owing and are easy to miss if you do not review this section annually.
If you withdrew from your RRSP under the Home Buyers' Plan (HBP) or the Lifelong Learning Plan (LLP), your NOA includes the repayment schedule, showing the annual repayment amount required and any outstanding balance. Missing these repayments results in the missed amount being added to your taxable income for that year.
The RRSP deduction limit shown on your 2024 NOA is your 2025 contribution room. CRA calculates this as 18% of your 2024 earned income, up to a maximum of $32,490 for 2025, plus any unused room carried forward from previous years, minus any pension adjustments reported by your employer.
Always confirm your RRSP room directly from your NOA before contributing. Do not rely on estimates or prior-year figures. An overcontribution of more than $2,000 triggers a penalty tax of 1% per month on the excess amount. At Swift Accounting in Calgary, we regularly help clients reconcile their RRSP room, particularly when they have pension adjustments, spousal RRSP contributions, or gaps in their contribution history that make the calculation less straightforward.
CRA does not simply accept every return as filed. The agency cross-references the income you reported against T4s, T5s, T3s, and other slips submitted directly by payers. If a slip was not included on your return — even if you simply forgot to receive or report it — CRA may issue a revised calculation adding that income.
CRA may also disallow deductions it considers ineligible, adjust credits based on its own interpretation of the rules, or correct mathematical errors. When CRA makes changes to a return that has already been assessed, it issues a Notice of Reassessment.
A Notice of Reassessment follows the same format as your original NOA but shows what CRA changed and why. The result is typically one of three outcomes: you owe additional tax, your refund is reduced, or in some cases CRA issues you an additional refund if they find something in your favour.
The critical point is this: do not automatically accept a reassessment as correct. CRA makes errors. The agency may have received a T4 amendment from your employer but applied the original slip, or disallowed a legitimate deduction based on incomplete information. If you receive a reassessment, review every changed line carefully before deciding whether to accept or dispute it.
If you disagree with an assessment or reassessment, Canadian tax law gives you the right to dispute it through a formal objection process. To object, you file Form T400A — Notice of Objection — or submit your objection online through CRA My Account.
The deadline to file an objection is the later of:
Your objection must clearly identify which items you are disputing and provide your reasons and supporting documentation. CRA assigns the objection to an appeals officer who reviews your file independently from the original assessor. Do not wait on this — missing the deadline eliminates your right to object through the CRA process, and the next step would be Tax Court of Canada, which is significantly more involved.
CRA cannot reassess you indefinitely. For most individual taxpayers, CRA has three years from the date of your original NOA to issue a reassessment. This is known as the normal reassessment period.
The limitation extends to six years for transactions involving non-arm's length parties — for example, income-splitting arrangements or transactions between family members or related companies. There is no time limit where CRA can demonstrate fraud or misrepresentation attributable to neglect or carelessness. Keeping thorough records for at least six years from your filing date is standard practice for this reason.
If you have received a reassessment or are unsure whether the limitation period applies to your situation, speaking with a tax professional promptly is essential — particularly given the objection deadlines involved.
The team at Swift Accounting Calgary helps individuals and business owners navigate CRA assessments, reassessments, and objections. Whether you are trying to understand a reassessment notice or need support filing a formal objection, we provide clear guidance and representation through the process.
Contact Swift Accounting to review your Notice of Assessment or get help with a CRA reassessment.
If you filed electronically through NETFILE or EFILE-authorized software, CRA typically issues your NOA within two weeks of processing your return. Paper filers generally wait eight weeks or longer. You can view your NOA immediately once issued through CRA My Account, before the paper copy arrives by mail.
Start by comparing each line of your NOA against your filed return to identify exactly what changed. CRA may have added income from a slip submitted by a third party, adjusted a deduction, or corrected an error. If the change is incorrect or you disagree with CRA's position, you can file a formal objection using Form T400A within the applicable deadline. Do not simply accept a discrepancy without reviewing it.
A Notice of Assessment is the original document CRA issues after first processing your return. A Notice of Reassessment is issued when CRA reviews a previously assessed return and makes changes — adding income, disallowing deductions, or correcting figures. Both documents follow the same format, but a reassessment specifically identifies what changed from the original assessment and why.
The most reliable source is the RRSP deduction limit shown on your most recent Notice of Assessment. This figure reflects your contribution room for the following year, incorporating your earned income, unused room carried forward, and any pension adjustments. You can also log in to CRA My Account to see your current available room updated in real time. Never rely solely on a financial institution's estimate — always verify against CRA's records before contributing to avoid overcontribution penalties.
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