Thank you for your question!
As per CRA:
Many people celebrate getting a large refund, thinking of it as a surprise bonus. What it really means is that more of your money was collected for income taxes than necessary. Careful tax planning can help ensure that you send only the amount necessary in advance tax payments.
Tip
Some people like to think of the tax refund as a type of savings plan. If you receive a tax refund, save it—or at least most of it. It's money you have not spent through the year, so use it to pay down debt or add to your investments. And save at least as much in the next year, even if you can cut back your tax deductions or instalments.
The final result of these calculations is your tax refund. If your payroll deductions or instalments were too high, you'll receive a refund. If they were too low, you'll have a balance owing. You must pay a balance owing by April 30 to avoid penalties and interest.
For more information please visit CRA's site and TurboTax's blog.
Thank you, for further information please contact us by phone or via private message on Twitter or Facebook.
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