Currently set to Index
Currently set to Follow

Everything You Need to Know About NETFILE in Canada

Selling Your Business
How to Sell Your Business in Canada
July 30, 2022
Solidarity Tax Credit
SOLIDARITY TAX CREDIT: Everything You Need to Know
August 4, 2022
Everything You Need to Know About Netfile

What is NETFILE?

NETFILE is an electronic tax filing online service, launched by the Canada Revenue Agency (CRA). This service allows you to send your tax returns directly to the Canada Revenue Agency (CRA). The tax returns are submitted through protected software like H&R Block, which safeguards against any cyber security issues. 

Moreover, the Canadian revenue agency (CRA) implemented this program in 2001. The purpose of this program was to give an alternative new method of tax filing to Canadians. Citizens working in offices or who don’t have time to file their tax returns in person can easily use this software and file their taxes before the deadline.

What is the purpose of using NETFILE?

The process of filing tax returns through NETFILE is speedier and easier than the traditional method. The NETFILE allows users to receive notice of assessment refunds more efficiently, rather than waiting months if you file your tax through standard paper filing.

You can file NETFILE through approved software, for instance, TurboTax, to get the direct link. Besides that, the personal information you are sending to the Canada Revenue Agency (CRA) is encrypted by this program, CRA is also held accountable under any circumstances if the information is leaked or sent to an unauthorized source.

The process of income tax confirmation

The process of income tax confirmation is pretty straightforward and flexible. The confirmation of the income tax is one of the most important steps you can take. The personal tax return documents are filed and sent to the Canada Revenue Agency (CRA). Your documents will be viewed by the Canada Revenue Agency (CRA) and you will receive a confirmation message. The confirmation message will confirm whether your documents were properly sent for a tax return or not. Secondly, in the case of any query or issue, you can show a confirmation message as proof.

If you failed to receive any confirmation messages from the Canada Revenue Agency (CRA), you need to review your documents again and contact the helpline.

What happens after you file a tax return with NETFILE? 

When filing a tax return, you need to create your account on the NETFILE website so that you can monitor your activities and position. Naturally, after filing a tax return, you will either immediately see any response or changes in the account messages or it might take more than 48 hours. The benefit of applying through electronic filing, or NETFILE, is that it takes less than 10 hours and it is more efficient. However, applying in person / by mail might take more than 4-6 weeks.

The next step is Canada Revenue Agency (CRA) will send you a notice of assessment in your online account (my account). In the notice of assessment, you will see whether your tax return is approved, if any file needs proof or is incorrect, or if you have made a mistake while filing the tax return. You will get 90 days to correct it and send it back.

Relax and patiently wait for your refund if everything on your NOA appears to be accurate and it’s a refund. Nevertheless, if the CRA still owes you money, you should get in touch with them as soon as possible to establish payment arrangements before the 90-day period expires. Penalties and interest must be paid in the absence of this.

How to correct your NETFILE return?

Turbo TAX is one of the most trustable and confidential software used for filing the tax return. The reason why this software is preferred for use by the Canada Revenue Agency (CRA) is that your information and personal data are encrypted. Nobody but CRA can get access to it.

According to the Canada Revenue Agency (CRA), it also stated that “a number of identification and tax-related validations” are used so that customers are given a safe, encrypted, and highly protected service. Your bank account details, property, and other asset-related information and account privacy are seriously secured by Turbo Tax software. 

Eligibility criteria for using NETFILE

To access the electronic tax file service, you need to be eligible for it. Let’s look at the eligibility criteria for filing NETFILE:

  • Filing NETFILE for the first time
  • Non-resident of Canada
  • File for bankruptcy

Filing NETFILE for the first time

If the Canada Revenue Agency (CRA) doesn’t have your social insurance number (SIN) or your other very personal information, for example, your date of birth, then you can’t file the tax return on NETFILE. You need to submit your documents, then after confirmation, you will be given access to the file through NETFLE.

Non-resident of Canada 

The non-resident or those citizens who are foreigners or don’t have personal addresses might not be eligible to file tax returns online. For further information, you need to contact the Canada Revenue Agency (CRA) to know how you will be eligible.

File for bankruptcy

If you have currently filed for bankruptcy or have financial trouble related to your business, or have additional business outside the territory in 2 years, You are not eligible to file a tax return through NETFILE.

Ready to start the process 

Now that you know everything a person should know before filing a tax return through NETFILE. You can simply start the process easily. Download the software, create your account, and have happy filing returns.

Takeaways

You might be thinking, “Oh no, filing a tax return is boring and complicated, and you might not be able to do it.” However, by reading this thoroughly and taking help from Canada’s official tax return file website, you will get an idea of how to file taxes. In case of an emergency, you can always contact Canada Revenue Website (CRA) to resolve your issue.

The things to learn from this blog are, what is NETFILE, the process of NETFILE, how to correct your NETFILE, what is the eligibility criteria, and lastly, get ready to start the process.

Salman Rundhawa
Salman Rundhawa
Salman Rundhawa is the founder of Filing Taxes. Salman provides valuable tax planning, accounting, and income tax preparation services in Toronto, Mississauga, Oakville, and Hamilton.

Leave a Reply

Your email address will not be published. Required fields are marked *

416-479-8532