Technical issue at CRA delayed tax refunds for FHSA holders

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Technical issue at CRA delayed tax refunds for FHSA holders
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Many early filers have likely endured processing problems

The 2024 tax season got off to a rocky start for many early filers, as the Canada Revenue Agency experienced a technical issue in processing the returns of Canadians who opened a first home savings account in 2023, the Globe and Mail has learned.

In recent days, several members of Canadian online communities on the social media platform Reddit said they had been waiting around a month for tax refunds tied to contributions they had made in 2023 to their FHSAs, despite filing their paperwork electronically. The FHSA combines the main tax perks of the tax-free savings account and the registered retirement savings plan . Money invested inside an FHSA grows tax-free, with qualifying withdrawals from the fund also exempt from tax, as with a TFSA, and deposits into the account eligible for a tax deduction as well, as is the case with RRSP contributions.

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