Home  Starting Out in Canada Pay your taxes without leaving home
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Pay your taxes without leaving home |
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As a newcomer to Canada, you are probably aware that you must file your
income tax return each year, whether or not you are liable to pay tax.
What you might not know is that it is easy for you to prepare and file
your return without ever leaving the comfort of your home.
Using NetFile: If numbers make your head spin, understanding the forms that Canada Revenue Agency (CRA) sends out can be a little difficult. However you can choose between several tax software packages that hold your hand right through the process and let you file over the internet. These packages range from $10-$60. Look for online ads or check your newspaper around tax filing season for the best deals.
The software usually goes on sale from around the middle of February each year.
One thing to note is that you must purchase the software for the latest tax year. Tax requirements change virtually every year so there's no point hunting for previous years' software.
Most of these packages can be purchased online. Compare the features offered by each one (try the web demos if available) before you decide which one to go with.
The CRA website uses the same secure form of encryption that banks in North America use, so that you can file your tax return securely. After preparing your return, simply go to the "Ready to file" page on the NetFile web site (www.netfile.gc.ca). Fill in the identification section using the access code on the personal label sheet in your tax package, attach the tax file, and press "Transmit."
In addition, you can make the whole experience paperless, by paying your tax bill electronically through your financial institution's Internet or telephone banking service.
There are real advantages to NetFile:
- Security - it's secure and confidential
- Greater accuracy
- Convenience - no paper tax returns to mail, no receipts to send in unless asked for
- Peace of mind - you get immediate confirmation that the CRA has received your tax return.
You can even go back online to find out the status of your refund or make changes to your return.
Efile your returns: Another popular method with many Canadians is using the services of tax professionals, who will also file your return via the internet using CRA's eFile tax filing service.
By using tax preparation software certified by the CRA and an internet connection, tax preparers simply go to the eFile website at www.efile.cra.gc.ca, enter their eFile number and password, attach the tax file, and then press "Transmit." Tax professionals who apply to use this easy and convenient service are authorized to do so by the CRA.
Once your tax professional has filed your return and the CRA has assessed it, you can enrol for the My Account online service and find out about your refund or balance owing, instalment account, registered retirement savings plan, and more. You can even make a change to your return.
To make the whole experience paperless, if you owe money or if you have to pay your tax by instalment, you can make your payments electronically through your financial institution's internet or telephone banking service. Simply contact your financial institution.
File over the phone: A third method, called TeleFile, allows you to phone in your tax return. This is as secure and confidential as telephone banking.
TeleFile is free, and you need no special skills or equipment. Last year, more than half a million Canadians filed their tax returns using this service.
If your tax situation consists of the most common items, such as employment income, pension income, interest income, registered retirement savings plan income, or charitable donations, or you receive a T1 Special, T1S-A, or a T1S-C tax package, TeleFile is for you. Just dial 1-800-959-1110.
TeleFile repeats each telephone entry you make, so that you can be sure you entered the right information. If you make a mistake, you can correct it, or hang up and call again. You should be aware that your return has not been filed until you receive a confirmation number.
Whichever of these three paperless methods you choose, there is one more advantage - you receive your refund (if any) in as little as eight working days; even less if you have direct deposit.
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