There are certain situations where the Canada Revenue Agency (CRA) will pay you interest on your tax refund. The calculation, which uses a prescribed interest rate and is compounded daily, starts on the latest of the following dates:
- May 31, 2018
- The 31st day after you file your return or
- The day after you overpaid your taxes
You might also be eligible to receive interest payments from the government if your return has been reassessed and it’s been determined that you should have received more than you did. For example, if you applied for and received a disability tax credit certificate and the government told you could apply for the disability amount on your previous year’s return, you would be entitled to receive interest payments on the adjusted amount.
If you’re a resident of Québec, the interest rate that will apply to your refund is the same rate that’s in effect on the first day of the third month of the previous quarter with respect to the most recent issue of Québec Savings Bonds. For more information, refer to the Revenu Québec website.
Where can I claim this?
Follow these steps in H&R Block’s 2017 tax software:
- On the PREPARE tab, click the REQUIRED icon. You will find yourself here:
- In the Instalments/interest received/direct deposit page, answer Yes to one or both of the following questions, as applicable:
- Did you receive any interest payments from the CRA in 2017?
- Did you receive any interest payments form Revenu Québec in 2017?
- Enter your information into the tax software.
You can also enter the interest payments you received in the QUICK ENTRY section:
- On the QUICK ENTRY tab, click the QUICK SLIP icon. You will find yourself here:
- Type either Interest payments received from CRA or Interest received Revenu Québec in the search field and either click the highlighted selection or press Enter to continue.
- Enter your information into the tax software.
