Last year, more than five million Canadians filed their own tax returns online using the Canada Revenue Agency’s NETFILE system. This year, the CRA has made it even easier to use NETFILE and it is allowing more taxpayers to file electronically. If you are filing yourself, here is some advice:
- No more access codes: Before, you had to have a NETFILE access code to use the system. The code was mailed to you by the CRA. Starting this year, you no longer need a NETFILE access code. The CRA will verify your identity with your Social Insurance Number (SIN) and Date of Birth.
- First-time filers can use the system: Also new in 2012 is the ability for some first-time filers to use NETFILE. New Canadians cannot use the system but if you are a resident and filing a tax return for the very first time, you should be able to use NETFILE. There are still some exceptions. For example, if you immigrated to Canada last year or have a new SIN, you may not be able to use the system.
- File extension: NETFILE accepts .tax files only. Your software program should output a file with this extension.
- It gets busy: To procrastinate is human. If you are planning to file your tax return on April 30th at 10 p.m. EST, the system is going to be busy and it may take time. If you owe money and don’t want to face a late filing penalty, waiting until the last minute may not be the best plan.
- Keep your confirmation code: You should receive a NETFILE confirmation code once your return has been successfully filed. Make sure you keep a note of it in case you need to follow up with the CRA on your return.
- My Account is different: Using NETFILE does not automatically give you access to your information within My Account. It is a different system so My Account needs to be set-up separately.
- Refund expectations: As a general rule of thumb, you can expect your refund in eight to 10 business days after filing with NETFILE with direct deposit. If you opt for a cheque, you’ll wait a bit longer for your refund to arrive in your mailbox.
- Keep your paperwork: Filing electronically does not mean you do not need to keep your supporting receipts and slips. If the CRA asks you to prove your claim, you will need to send copies of your paperwork. If you do not have the records, your return will be reassessed minus the credit or deduction you claimed.
Only certified software can use NETFILE to file returns; the available options can be found on the CRA’s site. Even though you may not need to scramble and find your NETFILE access code this year, make sure you leave yourself enough time to prepare your taxes correctly. No one likes to miss credits or deductions.