taxes

The 2015 tax season is now moving ahead in full steam and most Canadian taxpayers are ready to file their taxes. Today we discuss the CRA’s newest feature – Autofill the return :

Click and File: The CRA has introduced the Auto fill feature for the 2015 tax season. If you are registered for My Account, you can prepare your tax return by click of a button.

How it works:

  • Download a CRA certified software like Taxtron that offers the Auto fill service
  • You will be then prompted to enter your MyAccount user name and password.
  • Follow the instructions and the Auto fill feature will populate your return with all the data available with CRA

The Pros:

  • Auto fill makes tax filing very quick and efficient. All the information gets entered in your return automatically.
  • Auto fill protects you against human error. We all have made those data entry mistakes in our lives and with Auto fill, the data will be entered accurately and exactly in fields where it belongs.

The Cons:

  • Auto fill means populating your return with information that is available to CRA. This will include all your T Slips and carryover amounts but it will not include the following:
    • Missing T Slips- You may have a lazy employer that has not yet submitted a copy of your T4 to CRA. You are still responsible for accuracy of your return.
    • Tuition receipts- CRA has no information about the tuition you paid during the tax year.
    • Medical Expenses
    • Transit Expenses
    • Fitness Expenses for children
    • Arts Expenses for children
    • Donations

All of the above information needs to be entered manually by the tax payer. This is where Auto fill is not useful but having a good certified software like Taxtron helps.

Also, it may be noted that there is sometimes a lag between CRA obtaining information from employers and financial institutions and updating it’s databases. Even though tax filing is allowed from Mid- February, the employers and financial institutions have February end as a deadline for issuing T slips. So while using Auto fill might be a great idea in later March or April, it is definitely not a reliable tool in February and early March as CRA might not have all the information.

So download your Taxtron software today at www.taxtron.ca and cruise control your return but don’t let your eyes off the road as you are still going to be responsible for accuracy of your return.

 

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