CRA Says ‘Processing Issues’ Delaying Tax Returns for FHSA Holders Resolved

Canada Revenue Agency Resolves Processing Issues Causing Delays for Tax Returns for FHSA Holders

March 21, 2024 TruthUSA

The Canadian Revenue Agency experienced delays processing tax returns due to issues related to the First Home Savings Account (FHSA) opened in 2023, but these problems have now been resolved according to CRA spokesperson Kim Thiffault.

Individuals who opened an FHSA in 2023 were experiencing delays, as reported by users on Reddit.

Some users mentioned not receiving their Notice of Assessment (NOA) despite filing their tax returns, attributing the delays to the FHSA.

The FHSA allows first-time homebuyers to save money for a home purchase and claim up to $8,000 on their tax returns, with a lifetime limit of $40,000.

Withdrawals from an FHSA for a home purchase are tax-free and do not need to be included in annual income, as per the Revenue Agency.

Despite aiming to issue notices of assessment within two weeks of receiving tax returns, the CRA acknowledges that processing delays may occur, causing inconvenience to taxpayers.

For taxpayers who file digitally and opt for direct deposit, refunds can be received in about eight days, while paper tax returns may take up to eight weeks to process.

Not all tax returns faced delays, with some users reporting receiving their NOAs promptly after filing.

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