Key Takeaways
- Official CRA document summarizing your tax return.
- Shows final balance: refund or amount owed.
- Must review and keep for at least six years.
- Disputes allowed within 90 days via objection.
What is Notice of Assessment (NOA)?
A Notice of Assessment (NOA) is an official document issued by the Canada Revenue Agency (CRA) after processing your income tax return. It summarizes your tax situation, including income reported, deductions, credits, taxes paid, and any refund or balance owing.
This document serves as formal confirmation that the CRA has reviewed your filing and outlines any adjustments made to your declared amounts.
Key Characteristics
The NOA provides a clear summary of your tax filing and status with the CRA. Key features include:
- Detailed breakdown: Shows reported income, deductions, credits, and payments made.
- Final balance: Indicates refund owed or amount due after adjustments.
- Official receipt: Confirms CRA’s acceptance and review of your tax return.
- Adjustment explanations: Highlights any corrections or changes made by the CRA.
- Taxpayer information: Includes your name, social insurance number, and tax year.
How It Works
Once you file your income tax return, the CRA processes the information and issues the NOA, typically within two weeks for electronic filings. It reflects the final assessment of your tax obligations or refund based on their review.
The NOA also acts as a trigger for the start of the reassessment period, which usually lasts three years. If you disagree with the assessment, you have 90 days from the NOA date to file a formal objection with supporting documentation.
Examples and Use Cases
The Notice of Assessment plays a vital role in various financial and administrative scenarios, such as loan applications or benefit verifications. Examples include:
- Airlines: Delta employees may use their NOA when applying for mortgages or financial services requiring proof of income.
- Credit evaluation: Lenders might request your NOA to confirm income details, similar to requirements found in best credit card applications.
- Tax disputes: If the CRA disallows certain credits or deductions, you can reference your NOA when submitting an objection.
Important Considerations
It’s essential to review your NOA carefully to verify all details and promptly address any discrepancies. Retain your NOA for at least six years, as the CRA can audit or reassess returns within this period.
Understanding your NOA can also help you manage future tax planning and budgeting, similar to how data analytics can improve financial decision-making. Always keep your NOAs organized to support your tax history and claims.
Final Words
Your Notice of Assessment confirms your finalized tax details and any adjustments made by the CRA. Review it carefully to ensure accuracy, and keep it accessible for future financial verifications or disputes.
Frequently Asked Questions
A Notice of Assessment (NOA) is an official document from the Canada Revenue Agency (CRA) that summarizes the review of your income tax return, including income, deductions, credits, taxes paid, refunds owed, or amounts due.
You can expect your NOA within about two weeks if you filed electronically, or longer if you submitted a paper return. The CRA issues it at the end of the tax year after processing your return.
The NOA contains your name, social insurance number, tax year, a breakdown of income, deductions, credits, payments made, any adjustments by the CRA, your final balance, and reminders for future tax actions.
Unlike a Proof of Income Statement, which only summarizes income and taxes paid for verification, the NOA gives a complete overview of your tax situation including any changes made by the CRA after reviewing your return.
If you disagree with your NOA, you have 90 days from its issue date to file a Notice of Objection using Form T400A, providing supporting documents and clearly explaining the errors for CRA to reassess your return.
You can access your NOA online through CRA My Account, receive it by mail, or request a copy directly from the CRA if needed.
Keeping your NOAs for at least six years is important because the CRA can review your tax returns during that period, and these documents support your tax history and future claims.
If you are owed a refund, it usually arrives within one to two weeks after the CRA issues your NOA, especially if you filed your return electronically.
