You could be eligible for automatic tax filing in Canada this year — Here's how it works

If you've been dreading filing your income taxes, you might be in luck — the Canada Revenue Agency (CRA) is making it easier than ever for millions of Canadians to file their 2024 tax return this year.

You could be one of the 2 million Canadians invited this tax season to use SimpleFile, an automatic tax filing service that lets you submit your return in just minutes — and for free.

SimpleFile does all the heavy lifting, using the answers to a few quick questions and the information the CRA already has on file to process a tax return for you. That means no complicated forms, no confusing tax calculations and no expensive software — just quick and easy tax filing with minimal effort.

According to the CRA, this expanded initiative has already connected Canadians with billions in benefits and credits. Last tax season, over 1.5 million people were invited to use SimpleFile by Phone, and by November, 93% of them had filed their returns — unlocking over $3 billion in government payments like the Canada Child Benefit, GST/HST Credit and Canada Carbon Rebate.

This year, the CRA is taking things up a notch, expanding it to more low- and fixed-income Canadians with simple tax situations and even offering a new digital option for eligible taxpayers with a recent filing history.

So, how does it work?

If you're eligible, you'll receive an invitation from the CRA — either in the mail or in your online CRA account. From there, you can choose between two options: SimpleFile by Phone or SimpleFile Digital.

If you go the phone route, you'll answer a few quick questions using your keypad, and the CRA will handle the rest. The CRA says the process takes as little as 5 to 10 minutes, and you don't even need to speak with an agent. Plus, if you already have a PIN with the CRA, you can even get an estimate of your refund at the end of the call.

Prefer to file online? SimpleFile Digital lets you complete your tax return on your computer or mobile device in 20 minutes or less.

Filing your taxes isn't just about staying on the government's good side and avoiding fines — it's also the key to accessing a vast suite of government benefits, valuable tax credits and even programs like the Canadian Dental Care Plan.

The CRA says that SimpleFile will be available 21 hours a day, seven days a week starting on the first day of tax season this year —February 24, 2025. Your invitation letter will have everything you need to get started, including phone numbers or web links.

It's important to note that if you live in Quebec, SimpleFile will only complete your federal tax return. Residents of that province will still need to file their provincial returns separately with Revenu Québec.

Of course, with tax season comes an increase in scams and fraud, so the CRA is also reminding taxpayers to be cautious about unsolicited calls, texts or emails. If you're unsure whether a message is legit, the CRA's website has a dedicated Scams and Fraud page outlining how they may contact you and what to watch out for.

For those who qualify, SimpleFile's automatic tax filing could make tax season way less stressful — no calculators, no paperwork, just a few clicks or button presses, and you're done. If you get an invitation, it might be the easiest tax return you'll ever file!

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