NETFILE vs Paper Filing
Quick Comparison
| Factor |
NETFILE |
Paper |
| Refund time |
2 weeks |
8+ weeks |
| Confirmation |
Immediate |
By mail later |
| Accuracy |
Error checking |
Manual |
| Cost |
Free (with free software) |
Postage |
| Convenience |
From home |
Mail physically |
What Is NETFILE?
Electronic Filing System
| Feature |
Details |
| What it is |
CRA online submission |
| How it works |
Use certified software |
| Transmission |
Electronic to CRA |
| Confirmation |
Immediately |
Requirements
| Need |
Details |
| Certified software |
CRA-approved list |
| SIN |
Social Insurance Number |
| Prior return info |
May need for verification |
| Internet |
Obviously |
Benefits of NETFILE
Faster Refunds
| Filing Method |
Refund Timeline |
| NETFILE + Direct Deposit |
2 weeks |
| NETFILE + Cheque |
4 weeks |
| Paper + Direct Deposit |
4-6 weeks |
| Paper + Cheque |
8+ weeks |
Accuracy
| Benefit |
Details |
| Error checking |
Software catches mistakes |
| Math calculated |
Auto-calculated |
| Real-time validation |
Before sending |
| Fewer rejections |
CRA accepts immediately |
Convenience
| Feature |
Benefit |
| File anytime |
24/7 during season |
| From anywhere |
Home, anywhere with internet |
| No mailing |
Electronic submission |
| Keep copy |
Digital records |
Confirmation
| NETFILE |
Paper |
| Immediate confirmation number |
Weeks to know received |
| Know if accepted |
Hope it arrived |
| Record of submission |
Keep mailing receipt |
Free NETFILE Software
CRA-Certified Free Options
| Software |
Platform |
Free If |
| Wealthsimple Tax |
Web/App |
Always free |
| StudioTax |
Windows |
Donations accepted |
| genutax |
Windows |
Free |
| TurboTax Free |
Web |
Simple returns |
| H&R Block Free |
Web |
Simple returns |
Income Limits for Free
| Software |
Income Limit |
| Wealthsimple Tax |
No limit (always free) |
| TurboTax Free |
Income under ~$35,000 |
| H&R Block Free |
Simple returns |
When Paper Filing Is Required
Situations Requiring Paper
| Situation |
Why Paper |
| First return in Canada |
Sometimes |
| Certain non-resident |
Depends |
| Prior year returns |
>3 years back |
| Some amended returns |
T1-ADJ |
| Certain business returns |
Complex schedules |
When Paper Might Be Preferred
| Preference |
Reason |
| Extremely complex |
Attorney/accountant preference |
| No technology |
Can’t use computer |
| CRA requested |
Specific circumstances |
How to NETFILE
Step-by-Step
| Step |
Action |
| 1 |
Choose certified software |
| 2 |
Gather tax documents |
| 3 |
Enter information |
| 4 |
Review return |
| 5 |
NETFILE submit |
| 6 |
Receive confirmation |
What You Need
| Document |
Examples |
| T4 |
Employment income |
| T5 |
Investment income |
| T4A |
Other income |
| RRSP receipts |
Contributions |
| Receipts |
Donations, medical, etc. |
Auto-Fill My Return
| Feature |
Details |
| What it is |
CRA sends slips to software |
| Link account |
CRA My Account to software |
| Auto-imports |
T4, T5, etc. |
| Verify |
Always check accuracy |
How to Paper File
If You Must Paper File
| Step |
Action |
| 1 |
Get forms from CRA |
| 2 |
Complete by hand |
| 3 |
Attach all slips |
| 4 |
Mail to tax centre |
| 5 |
Keep copies |
| 6 |
Wait for assessment |
Where to Mail
| Province |
Tax Centre |
| Ontario |
Sudbury Tax Centre |
| Western |
Winnipeg Tax Centre |
| Quebec |
Shawinigan-Sud Tax Centre |
| Atlantic |
St. John’s Tax Centre |
What to Include
| Include |
Notes |
| T1 General |
Main return |
| Schedules |
As applicable |
| Slips |
T4, T5, etc. |
| Receipts |
If specifically requested |
NETFILE Limits
What NETFILE Can Handle
| Can File |
Yes/No |
| Employment income |
Yes |
| Investment income |
Yes |
| RRSP/TFSA |
Yes |
| Self-employment |
Yes (most) |
| Rental income |
Yes |
| Basic business |
Yes |
What May Need Paper
| Situation |
Notes |
| First Canadian return |
May need paper first year |
| Very old returns |
>10 years |
| Certain elections |
Depends on election |
| Non-resident certain years |
Varies |
Refund Timing
Direct Deposit vs Cheque
| Delivery |
NETFILE |
Paper |
| Direct deposit |
2 weeks |
4-6 weeks |
| Cheque |
4 weeks |
8+ weeks |
Set Up Direct Deposit
| Step |
Action |
| 1 |
Log into CRA My Account |
| 2 |
Go to Direct Deposit |
| 3 |
Enter bank info |
| 4 |
Confirm |
After Filing
NETFILE Confirmation
| You Receive |
Details |
| Confirmation number |
Save it |
| Timestamp |
When filed |
| Status |
Accepted/rejected |
Check Status
| Method |
Details |
| CRA My Account |
See assessment |
| Auto-fill next year |
Keep account active |
| Notice of Assessment |
Online or mail |
Tips for Successful Filing
Before Filing
| Tip |
Why |
| Gather all slips |
Don’t miss income |
| Check Auto-fill |
May have slips you forgot |
| Review carefully |
Catch errors |
| Save your file |
Keep records |
Common Mistakes
| Mistake |
Solution |
| Missing slips |
Use Auto-fill |
| Wrong SIN |
Double-check |
| Math errors |
Software calculates |
| Missing signature |
NETFILE doesn’t need |
Summary
NETFILE Wins
| Benefit |
Paper |
| Faster refund |
Much slower |
| Immediate confirmation |
Wait weeks |
| Error checking |
None |
| Convenience |
Mail hassle |
Use Paper Only If
| Situation |
|
| CRA requires it |
|
| Very old return |
|
| First-time filing certain situations |
|
| No internet access |
|