Your Notice of Assessment arrives after the CRA processes your return. It confirms what was assessed, and it carries several pieces of information you will need later. It is worth more than the two seconds most people give it.
The assessment summary
This shows what the CRA recorded for your income, deductions, credits, and tax, and whether you have a refund or a balance owing. Compare it to the return that was filed. If the numbers differ, the CRA changed something, and the notice will include an explanation of why. That explanation is the first thing to read.
Your RRSP deduction limit
This is the number to keep. It tells you how much you can contribute to an RRSP and deduct for the coming year, including any unused room carried forward from previous years. Over-contributing beyond the small permitted buffer attracts a monthly penalty tax, so guessing is expensive.
Carryforward amounts
The notice tracks balances that move from one year to the next, which commonly include unused tuition amounts, net capital losses, and non-capital losses. These are easy to lose track of, particularly if you change accountants or software. The notice is the authoritative record.
Instalment reminders
If the CRA expects you to pay tax by instalments, the notice will say so. Instalments generally apply when you owe more than a set threshold at filing time in the current year and in either of the two prior years, which typically affects self-employed people, those with significant investment income, and retirees with several pension sources. Ignoring instalment requirements results in interest charges even if you pay the full balance by the deadline.
If you disagree
If the CRA changed something and you believe the original return was right, you can file a notice of objection, generally within 90 days of the notice date. If you simply made an error, you can request an adjustment instead, which is a much lighter process.
Keep it
You will be asked for your Notice of Assessment more often than you expect: by mortgage lenders, for certain benefit applications, and by your accountant when preparing next year’s return. It is also available any time through CRA My Account, which is worth registering for if you have not already. We link to it on our resources page.
If your notice does not match what you expected, send it to us and we will work out what changed.
A note on this article: tax rules and deadlines change. This article is general information, not advice for your specific situation - for that, talk to us.