For many Canadians, tax season carries one question that quietly sits at the back of the mind: “How big will my refund be this year?”
Some people even treat refunds like a bonus — a reward, a windfall, or a sign that they “did their taxes right.” And if the amount is smaller than expected, it feels disappointing. But here’s the truth most people don’t hear often.
A refund is not a gift. It’s your own money being returned.Let’s break down why this myth shows up so often.
1. Refunds Come From Overpaying Taxes — Not Extra Benefits
When your employer deducts more tax from your paycheque than you actually owe, the CRA returns the difference. That’s the “refund.”
Nothing more, nothing less.
It doesn’t mean you’re lucky.
It doesn’t mean you’re getting a special credit.
It means your employer withheld too much.
2. A Big Refund Suggests a Smaller Paycheque All Year
This part surprises people.
A larger refund often means:
too much tax was deducted
your take-home pay was lower than it needed to be
your money stayed with the government instead of with you
A refund is simply a correction.
3. A Refund Doesn’t Mean You “Won” Tax Season
Some people think:
refund = success
owing = failure
But that’s not how taxes work.
A refund position simply reflects the relationship between what you owed and what you already paid.
Both situations can be completely normal.
4. Credits and deductions reduce your tax — not magically create refunds
Many Canadians believe:
“If I claim more things, I’ll get a bigger refund.”
Not always.
Credits reduce the tax you owe.
Deductions reduce the income you’re taxed on.
They don’t automatically produce refunds unless they push you into an overpayment.
A Better Way to Think About Refunds
Instead of asking, “How big is my refund?”
Ask:
Did I pay the right amount during the year?
Do my tax withholdings need adjusting?
Do I understand how my income was taxed?
A refund should feel like a correction — not a mystery.
When you understand that, tax season becomes calmer, more predictable, and a lot less stressful.