It may be hard to believe, but spring will arrive soon, along with all those pleasant spring events and rituals.

However, the dreaded, inescapable, ritual of filing your income tax return will also arrive.

In the past, this meant collecting forms and labouring away with a calculator and a pencil to fill out the often-confusing tax return, or you bundled everything together and paid a tax preparer to complete the task. 

Now, you can make use of the internet and a computer or mobile device to perform all the calculations, use Netfile to file the return electronically, and receive a tax refund in a matter of days. 

To use tax software to complete your return you have two basic choices.

One is to use an online service wherein all your tax calculations are performed online at the tax preparation website, or within a dedicated app on a mobile device. You are guided through the steps and your completed return is Netfiled to the Canada Revenue Agency (https://www.canada.ca/en/revenue-agency.html). 

The advantage of this method is that there’s no software to install and all your data is stored online and protected by your login and password. Also, if you’re new to using tax software you can try the service and only pay when it’s time to print or Netfile your return.

The other option is to download tax software to your computer. You’re still guided through the process, can work on the larger screen of a computer, and all your data is stored securely on your computer and not in the cloud.

However, you could lose all your work if the computer crashes, so it’s essential to make a backup on a flash drive.

A useful, time-saving feature of all tax software is AutoFill, wherein all your data and forms are downloaded from the CRA website and automatically inserted into the appropriate areas of the tax return. 

In order to Netfile, your return you must use an online service or software program certified by the CRA. There is a complete list of them with links at the CRA website, (https://tinyurl.com/3urjpv4d), which includes the usual companies, such as Ufile, TurboTax, and H & R Block, but there are plenty of others with many free options.

For example, Genutax for Windows (https://www.genutax.ca) will handle complex tax returns, including capital gains, and only asks for a voluntary donation.

In addition, most online services will process and Netfile a return free for anyone with an income less than $20,000 or a simple tax return with no medical or capital gains expenses. Ufile is offering free online tax prep for any post-secondary student, regardless of income, or anyone filing a tax return for the first time (https://tinyurl.com/y3cn2ss7).

The CRA can be a big help as well. It offers a unique service called SimpleFile (https://tinyurl.com/ycy7f7mk) which will complete the tax return for anyone with a basic tax situation and low income. To use SimpleFile to complete your return by phone or mail you’ll need to have received an invitation, but the online version is available with or without an invitation.

For anyone with a limited income, someone who does not have a computer or mobile device, or anyone who needs help, the CRA operates the community volunteer tax program, for which I volunteered for several years.

The website for the program (https://tinyurl.com/2ef3aa5f) has details about the service and the locations of free tax clinics in your area.

To use many of the CRA services, such as Autofill, you’ll need to register for an online CRA account (https://tinyurl.com/bd65n4kh) which will also let you access all of your tax forms and returns, check the progress of your return’s processing, and read important notices.

Income tax fraud is rampant at this time of year but luckily the CRA website (https://tinyurl.com/2uvsm6mh) has details of the current online, email, and telephone income tax scams and explains how to protect yourself and your family from tax fraud.

An added bonus of using tax software and Netfile is you’ll have lots more time to spend outside enjoying the spring weather.

Links in this column and others are available at www.rayser.ca/online and I can be reached at rayser3@cogeco.ca.

© Peterborough Examiner