Filing and payment methods - Segment 5
Host: Welcome to the segment called Filing and payment methods, part of the Preparing Your Income Tax and Benefit Return video. This segment mentions webpages where you can get more information. You can find links to these webpages in the Related links for this video.
I'm Karen Davis, your host for this segment. With me is Sarah Taylor. Welcome Sarah.
Subject matter expert: Thank you Karen.
Host: An earlier segment dealt with preparing your T1 return. Now that the return is prepared, what are some of the options for filing it?
Subject matter expert: The CRA lets you file your return several ways. You can use electronic filing options, such as EFILE and NETFILE. And there is always the paper filing method. Note, however, that the CRA promotes electronic filing as the more efficient method.
Host: Ok, so let's start with NETFILE. Can you tell us a little bit about the service?
Subject matter expert: NETFILE allows most Canadians to file their personal income tax and benefit return using the Internet. It's the quickest way of filing a T1 return and getting a tax refund. After using T1 NETFILE-certified software to prepare, verify, and save your T1 return, you can file it over the Internet.
Host: What is the difference between the T1 NETFILE certified software and the NETFILE service?
Subject matter expert: The T1 NETFILE certified software is used to help you prepare, fill out, and save your return. The NETFILE service transmits the return you have prepared.
Host: Is there anything that I need to know before I start using NETFILE?
Subject matter expert: Yes. Make sure the CRA has your most up-to-date information. If you've moved since you filed your last return or if you changed your banking information, let the CRA know. You can do this by using My Account or by calling the CRA. You can also send Form RC325, Address Change Request, or a signed letter that includes your SIN, your new address, and your moving date to your tax centre.
Host: Where can I go to get more information on NETFILE?
Subject matter expert: For more information, go to netfile.gc.ca.
Host: You also mentioned EFILE. What can you tell me about that?
Subject matter expert: EFILE lets filing service providers send individual T1 return information to the CRA over the Internet. Authorized service providers are primarily those who operate a tax preparation business. For more information on EFILE, go to the webpage on this topic.
Host: But if I'm using NETFILE or EFILE, how do I send my receipts and documents?
Subject matter expert: With both electronic filing options, you don't send the tax information slips, receipts, or other documents you used to prepare your tax return. You still have to keep them for six years, though, in case the CRA asks to see them.
Host: What are the steps involved in filing a paper return?
Subject matter expert: Use the General Income Tax and Benefit Guide to help you prepare your return and follow these steps.
First, transfer all data from your information slips to the schedules and return.
Then, calculate both federal and provincial taxes.
Next, calculate how much you owe or expect to receive as a refund.
And, finally, mail your return to your tax centre. The address of you tax centre is noted on the back cover of the forms package. You can also find it on the webpage on where to send your T1 return.
Host: What if I've filled out my return and calculated that I have a balance owing. What do I do now?
Subject matter expert: There are several ways you can pay your balance owing.
My Payment is an electronic service that uses Interac online to allow individuals and businesses to make payments directly from their online banking account.
You can also use your financial institution's telephone or online banking services to make a payment.
You can set up a pre-authorized debit agreement using the CRA's My Account service.
You can make your payment in person at your financial institution in Canada. To do so, you will need a remittance form.
If you want to mail your payment to the CRA, attach it to the front of your return. Make sure the payment is made out to the Receiver General. For more information, go to the webpage on making a payment.
Host: What if I'm unable to pay in full when I file?
Subject matter expert: You should always file your return on time and pay your full balance owing so that you don't get charged late-filing penalties and interest. If you can't pay your full balance owing, you can set up an arrangement by calling the TeleArrangment service at 1-866-256-1147 or the CRA at 1-888-863-8657. However, interest charges will apply for as long as you have an outstanding balance. See the segment in this video on penalties and interest for more information.
Host: Thank you, Sarah.
This concludes the segment on filing and payment methods, part of the CRA's Preparing Your Income Tax and Benefit Return video. Thank you for watching.
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