6 Ways to File Your Taxes in Canada

As the year comes to an end, it reminds us of the overwhelming experience of filing taxes in the coming months. The Canada Revenue Agency (CRA) governs and administers this process. The income tax calendar starts from January and ends in December every year.

To file a tax return, you need either a Social Insurance Number (SIN) or an Individual Tax Number (ITN). All types of tax filing may be personal, or business should be filed before April 30 for the previous calendar year. CRA charges penalties and interests for failing to file before the due date.

With time, people have slowly moved from traditional ways of filing taxes to improved online filing. As per CRA, 88.5% of tax returns were made electronically in 2019.

Let us see different ways of filing taxes.

Online Return Software

There is a variety of software available that are approved by NETFILE. Online websites are efficient and easy to use. Wizards allow us to auto-fill or complete the form, whereas optimizers maximize the refund amount. You can also load forms from previous years and change only the necessary fields to save time.

A few essential criteria for choosing them include which all languages they support, any OS compatibility, security, and encryption methods. Usually, the software is free to use, but they may provide pricing options for small business owners or companies.

My Payment Service

This is an electronic service provided by CRA, allowing you to use a bank access card for payment. Bank cards should be from Visa or Debit MasterCard or Interac. My payment service is available online. Make sure that the transaction amount is less than the withdrawal limit prescribed by the banking institution.

Canadian Financial Institutions

Private companies owners and business people can rely on tax accounting firms, which do accounting, bookkeeping, tax preparation. With a growing economy and increasingly complex tax structure, professional accounting firms are best to approach for hassle-free filing.

Working with them allows you to concentrate more on core business and worry less about frequent changes and complexities in filing taxes. You can book a tax consultation appointment through a CPA’s website.

Online or Telephone Banking

Paying online or through telephone banking is similar to paying bills. While paying, you must choose the Canada Revenue Agency, Revenue Canada, or Receiver General as the payee. 

Choose the type of account, i.e., individual or business, and period of tax accounting to which you want to make the payment. Almost all financial institutions provide an online banking payment method, so it is hard to miss out on this convenient method for filing.

Mail a Check or Money Order

One of the traditional ways is to make the check or money order payable to the Receiver General and must include with your Social Insurance Number on the front. It is suggested to attach a personal remittance voucher with the check or money order. 

Remittance vouchers have magnetic ink and are provided by CRA upon ordering by the business owners, and it’s self-printable for individuals. If you file a paper return, then you must attach a check or money order and address it to Receiver General.

The mailing address is specific to the region, and it is available on the CRA official website.

Canada Post Outlet

It is a good option of paying in person if you are not comfortable doing it online or in any of the above methods. You will need a QR code before going to pay in the post office. 

QR code contains your tax information and can be generated through the CRA website. It can be either printed on a hard copy or emailed or sent to a mobile phone.

File Intelligently

No matter if you file it online or in person, make sure you do it before the due date to avoid consequences and penalty fees. With the boom of tax return software, it’s easier than ever to go and do your taxes.

Do check if online payment websites are certified and secured to process your payments before starting to fill out. For private companies and business owners, accounting firms are suggested for hassle-free filing. CRA also provides a couple of options to pay, which are as easy and efficient as return software.

For technologically unfamiliar ones, there is always paper return or in-person payment ways, but it is suggested not to do on the deadline day. Always check the official CRA website for updates on tax structures and mailing addresses to stay updated.

Happy Filing.

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