We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Technology

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is Netfile?

John Lister
By
Updated: May 17, 2024
Views: 6,494
Share

Netfile is a Canada Revenue Agency (CRA) service allowing taxpayers to file their tax returns via the Internet. It is aimed at individuals, rather than professional accountants or tax preparers. Although the CRA usually lists the service in all capital letters, as "NETFILE," it is not an acronym and simply refers to Internet filing.

Not all taxpayers are eligible to use Netfile. Among those banned are people who have become bankrupt in the current or previous calendar year, residents living outside of Canada, and those with income from a business that has a permanent physical presence in a territory or province other than that where the taxpayer resides. There are also a series of more complex situations in which the taxpayer is not allowed to use the service.

In addition, there are restrictions on which returns can be filed through Netfile. A taxpayer cannot use the service in the first year in which she files an income tax return, and amended tax returns are ineligible for the service as well. Also, returns prepared by someone other than the taxpayer are not eligible. Although professional tax preparers who file returns on behalf of their clients cannot use Netfile, they may use a similar service known as EFILE. Tax preparers must have CRA approval before using EFILE.

To file through Netfile, a taxpayer must prepare an electronic tax return using third-party software certified by the CRA. These include standalone applications for Windows and Mac computers, plus a range of web-based applications. As of 2010, around 30 applications had CRA certification, though the list is reviewed and revised each year. While most applications carry a fee, some are available at no cost.

The tax software will prepare a file stored in a dedicated ".tax" format. Only files in this format can be uploaded through Netfile. The user will need to locate this file when filing her return. Although it may vary from application to application, the default location will be in the main "Documents" folder in Windows or the "Home" folder on Macs.

Tavpayers will need a four-digit access code to file a return using Netfile. This is printed on the information sheet of the T1 tax return package received in the mail. Users who have lost this information can retrieve their code through the CRA site by providing their social insurance number, date of birth, and a figure taken from the previous year's tax return.

Share
WiseGeek is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
John Lister
By John Lister
John Lister, an experienced freelance writer, excels in crafting compelling copy, web content, articles, and more. With a relevant degree, John brings a keen eye for detail, a strong understanding of content strategy, and an ability to adapt to different writing styles and formats to ensure that his work meets the highest standards.

Editors' Picks

Discussion Comments
John Lister
John Lister
John Lister, an experienced freelance writer, excels in crafting compelling copy, web content, articles, and more. With...
Learn more
Share
https://www.wisegeek.net/what-is-netfile.htm
Copy this link
WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.

WiseGeek, in your inbox

Our latest articles, guides, and more, delivered daily.