What Is The Best Way To File Taxes For Free?

Access to a computer or smart device is necessary to use NETFILE; a CRA-approved tax preparation software package also is required. A list of free, approved tax preparation programs is posted on the tax agency’s website. The site also provides software downloads for various types of computers, smart devices and operating systems. Ensure that you understand how to use the software you choose and that it will accept all your tax data. CRA makes no recommendations about which product to use.

Any software you use to file your tax return must follow CRA’s guidelines. “It’s a prerequisite to use software that the government has approved and follow the instructions carefully. You’ll want to verify that NETFILE has current information on any change in your name and address,” advises Caroline Thompson, accountant and president of Thompson Accounting and Tax, Inc. “If you’re using software from a previous year, it’s up to you to make sure it gets updated and is still approved by CRA.” You’re also responsible for checking with the software manufacturer about any restrictions associated with the product. CRA assumes no responsibility for any calculation errors caused by tax preparation software.

To keep the process free and simple, CRA has imposed some restrictions, so NETFILE may not be for every tax filer. You can only file your own personal taxes from the current taxation year through the service. Amended tax returns are not accepted. You can’t use NETFILE if you’re a nonresident, went bankrupt in the current taxation year, have business income from outside your province or territory of residence or your mailing address is outside Canada. You’re also restricted if your social insurance number or individual tax number begins with “09,” which indicates you are a temporary foreign worker and not a Canadian citizen or permanent resident. Other restrictions apply and can be found on the CRA website.

If you’ve moved since your last tax filing and need to change your address, or if your name has changed and you have an online account with CRA, you can login and update your information prior to submitting your return. If you don’t have an account, you must call CRA and advise them by phone. CRA only allows 20 submissions using the same tax software to ensure that tax preparation services don’t use free options made available to individual filers commercially.

The CRA has approved many free, online tax preparation software programs that allow you to print and mail your return; you only pay for postage. You can choose a program listed on the CRA website. Ensure that your choice best suits your needs. For example, if you’re a student, confirm that the program allows you to input information such as student tax credits, bursaries and loans. Be aware that mailing your return rather than filing it online may mean waiting longer for your refund.

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