In Canada, the income tax filing procedure varies from individual to individual. It is based on your residential status. Also, the tax filing process remains completely different for non-residents. This Covid-19 pandemic might have affected the tax-filing procedures for all. Here, you will learn about how to file for personal taxes this season and what’s new in 2021.
NETFILE Your Returns
Instead of using old-style preprinted forms, you should use tax software to prepare your returns on your own. It can be done straight away from your laptop. There are many options to do online taxes. Either you download software from the internet or file taxes using an online tax return. It could be performed free of cost as some software provides free services for simple returns and low net incomes. You can subscribe to the Canada Revenue Agency web page to get a list of free packages and check if your returns qualify for Netfile. Reach us, if you want to know about Netfile Restrictions or Netfile Eligibility. ZRPC provides exclusive services for filing income tax returns in Toronto.
How can you start filing with NETFILE?
Before getting started, you have to provide your basic information such as name, address, SSN number, and an access code. This access code can be retrieved from your previous years’ notice of assessment. You can file your taxes without this code but won’t be able to use information from previous years’ tax returns.
The online filing helps you avoid errors and missed figures. It includes your up-to-date information such as address and contact number. In case of a change of address, either you tell your CRA to update your new address or make changes in NETFILE on your own.
Do you know that you can also Auto-fill tax returns on behalf of a family member? For that you have to:
- Be an authorized member and have a RepID to identify you.
- Provide this RepID to your family member so that they can assign you as an authorized member.
- Once you get authorized, you can auto-fill their taxes.
And in case, you authorize someone else for your taxes make sure they provide you a confirmation copy. As the CRA has almost all your tax information slips(if received) and other relevant information. These information slips are generally received by early March every year.
To know more about the tax information slips, please click on Auto-fill my return.
EFILE
Auto-Filing Tax Returns
The auto-filing feature “auto-Fill my Return” was introduced in 2015 by Canada Revenue Agency. This has made tax filing and credit benefits a lot easier.
How it’s done?
The auto-fill feature itself fills part of tax returns with the existing information it has at the time of the request. To activate it, an individual must be using certified NETFILE software and have registered for my account.
Now, log in with My Account User Id and password on NETFILE, and proceed with the provided steps. Make sure that you have filled in accurate information before you switch to the auto-fill option.
Mail Your Returns
This is another filing option where you can have your returns printed from income tax preparation software. And then mail it to Canada Revenue Agency(CRA).
EFILE
Hire An Income Tax Return Firm
You can have a professional firm do your taxes – both filing and returning. Most people prefer this option as returns tend to arrive quickly as compared with other options. Your tax returns get filed electronically by income tax experts. For EFILE, you have to use EFILE certified software and register with CRA. Be it a personal income tax return or a corporate income tax return, you can always opt for EFILE.
Note: Make sure the person or a firm doing your taxes is well-experienced in handling all types of taxes. How much you pay them doesn’t count, you still have to check if your taxes are paid in time.
File My Returns
People with a low and steady income can file their returns on CRA’s File my Return section. This procedure is followed through an automated phone service.
Manual Tax Preparation
To file your taxes manually, you can fetch the T1 personal income tax form from a nearby post office. you can also use CRA forms. Manual taxing candidates will receive a mail package which has to be arrived by the end of February. In case if it doesn’t, contact CRA to resolve the issue.
Note: Always stay ahead of the time when it comes to taxes.