How to File Your Income Tax Return Electronically

By Randall Orser | Personal Income Tax

Out of more than 25 million tax returns filed each year over two-thirds are filed electronically.  This number is going to grow as the CRA is encouraging people to go paperless 

There are two ways to file your return electronically. If you do your own return you can file through Netfile.  If you have your return done for you or you do one for others you need to submit those returns through Efile Online.  

It is important to keep your personal information up to date with the CRA for the best results when filing electronically.  It is a good idea to set up a MyAccount on line with the CRA so that you can check the status of your return as well as sign up for direct deposits of your tax refund and GST payments. 

Service Canada’s My Service Canada Account or MSCA gives you access to your employment insurance, old age security and Canada pension plan information.  It will also give you access to electronic versions of your T4’s for these services.

Netfile only processes tax returns from the current year, so if you are filing for previous years or wish to make amendments to previous returns you will need paper copies of the relevant tax return forms.   You also cannot use Netfile if you have declared bankruptcy or if you have income from a different province to the one where you live.

When you file electronically you need to collect all your T4’s and T5’s which show your employment and investment income.  You should also have last year’s notice of assessment which shows your RRSP limits and deductions you can carry forward.  You will also need all receipts that support claims for deductions and tax credits such as medical expenses and children’s activities.  You need to keep all your receipts in case you have a future review or audit. 

You will need to use certified software such as TurboTax to prepare your return which will also guide you through the Netfile process.  

For more information about filing with Netfile see https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/netfile-overview.html

From an article from Turbo Tax

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President/CEO Number Crunchers® Accounting Inc. Learn how to just say stuff it to this bookkeeping thing with our 'Just Say: "Stuff It" To Bookkeeping program.