Discovering that you missed claiming a valid deduction on your previous year’s tax return can be frustrating. Fortunately, the Canada Revenue Agency (CRA) allows taxpayers to correct such mistakes by requesting an adjustment to their prior tax returns. This process helps you claim missed deductions, potentially increasing your refund or reducing your tax owing. This comprehensive guide explains how to request an adjustment, what documents are needed, deadlines to keep in mind, and tips to ensure a smooth process.
Understanding Tax Return Adjustments
A tax return adjustment is a formal request made to the CRA to review and modify your previously filed return. Adjustments can be made for various reasons, including missed deductions, errors, or omitted income. When you request an adjustment to claim a missed deduction, the CRA re-evaluates your return to reflect the changes and issues a Notice of Reassessment.
When Should You Request an Adjustment?
If you realize that you forgot to claim a deduction such as medical expenses, charitable donations, RRSP contributions, or employment expenses from a prior year, you should consider filing an adjustment. Promptly addressing these omissions ensures you receive the benefits you are entitled to without unnecessary delay.
How to Request an Adjustment
There are three main ways to request a tax return adjustment with the CRA:
- Online through CRA My Account: The easiest and fastest method is to log into your CRA My Account and use the “Change my return” feature to submit your adjustment request electronically.
- By Mail: Complete and send Form T1-ADJ, T1 Adjustment Request, to your tax centre with supporting documentation.
- Through a Tax Professional: An authorized representative such as an accountant or tax preparer can file the adjustment on your behalf.
Information to Include in Your Adjustment Request
Your request should clearly state:
- The tax year of the return you want to change
- The specific deduction you missed and the amount
- Reasons for the adjustment
- Copies of receipts or documentation supporting the deduction
Providing complete and accurate information helps the CRA process your adjustment without delays.
Common Deductions Often Missed
- Medical expenses and attendant care costs
- Charitable donations and gifts
- RRSP contributions made after the deadline but applicable to the prior tax year
- Union and professional dues
- Employment expenses requiring a signed Form T2200
- Childcare expenses
Deadlines for Requesting Adjustments
You generally have up to three years from the date of the original Notice of Assessment to request an adjustment for a particular tax year. For example, for the 2022 tax year, you would have until approximately April 2026 to submit a request.
What Happens After You Request an Adjustment?
Once the CRA receives your request, they will:
- Review your submitted information and supporting documents
- Recalculate your tax based on the new information
- Issue a Notice of Reassessment reflecting any changes
This process typically takes several weeks but can vary depending on the complexity of the adjustment and CRA workload.
Tips for a Successful Adjustment Request
- Keep copies of all documents submitted to the CRA
- Use the online method through CRA My Account for faster processing
- Be clear and detailed in explaining the reason for the adjustment
- Include all relevant receipts and forms
- Consult a tax professional if unsure about the process or your eligibility
What If Your Adjustment Request Is Denied?
If the CRA does not accept your adjustment, they will provide reasons for the denial in their response. You have the option to file a formal objection within 90 days of the reassessment date to challenge the decision.
Conclusion
Missing a deduction on your tax return is a common oversight but one that can be corrected by requesting an adjustment from the CRA. By acting promptly and following the proper procedures, you can ensure that you claim all eligible deductions and optimize your tax position. Utilize CRA My Account for a convenient and fast adjustment process, keep detailed records, and seek professional advice when necessary to navigate the process confidently and efficiently.
