File my Return | Page 2 | Income tax filing | Discussion forum

Bill said
Doug, you don't have to pay anyone to file your return, here's a link to CRA site that lists the authorized free (and pay) software:

https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/netfile-overview/certified-software-netfile-program.html  

I know, but that still requires using software. The OP, or another poster, and I pointed out the advantages of TELEFILE: it was free and required no additional software. For instance, someone could even prepare their tax return using the paper forms, and file it via TELEFILE rather than mailing it in, keeping a copy and all supporting documentation if asked. It's wrong to eliminate it and replace with this very poor substitute to a very limited clientele that sees them prepare their return for them. The people who are targeted are already eligible for free tax return preparation through the Community Volunteer Income Tax Program. 🙂

To quote a fine Alaskan governor and mom, who reportedly can see Russia from her house (or was that an SNL-only fake quotation? I can never remember!), it's like "putting lipstick on a pig." 😉

Cheers,
Doug

I guess the advantage of this new, limited initiative (maybe a test for possible future expansion) vs TELEFILE is you don't have to actually file your complete return data over the phone, you just have to answer a few questions and they'll do your return for you with the information they already have.

At this point it's a limited initiative aimed at maybe a million folks to make it a bit easier for them to file. The Minister referred to "people with reduced mobility, people who live far from service locations and people without Internet access" and I guess the implication is that low or fixed income folks might more frequently fall into those categories. (I notice you qualify by having low or fixed income so I guess it could apply to higher earners too - not sure what a "fixed" income means to CRA, though they indicate it's if your income "is unchanged year-to-year" but I don't think that would apply to anyone - does anyone have exactly the same income year after year?)

Winnie, I don't know why you didn't get an invite, sounds like you qualify, but I also didn't get a paper return as they said they were doing this year for those that filed on paper previously. But it's normal for new initiatives to have some bugs the first while.

Bill said
I guess the advantage of this new, limited initiative (maybe a test for possible future expansion) vs TELEFILE is you don't have to actually file your complete return data over the phone, you just have to answer a few questions and they'll do your return for you with the information they already have.

At this point it's a limited initiative aimed at maybe a million folks to make it a bit easier for them to file. The Minister referred to "people with reduced mobility, people who live far from service locations and people without Internet access" and I guess the implication is that low or fixed income folks might more frequently fall into those categories. (I notice you qualify by having low or fixed income so I guess it could apply to higher earners too - not sure what a "fixed" income means to CRA, though they indicate it's if your income "is unchanged year-to-year" but I don't think that would apply to anyone - does anyone have exactly the same income year after year?)

Winnie, I don't know why you didn't get an invite, sounds like you qualify, but I also didn't get a paper return as they said they were doing this year for those that filed on paper previously. But it's normal for new initiatives to have some bugs the first while.  

A million? I think it's even more limited than that. We're talking seniors that receive only a single OAS payment, maybe $50-150 per month CPP (if that), Spouses Allowance, and GIS. Probably a few hundred thousand, at best. It sounds like it might even be further targeted within that population, or to low income non-retired tax filers, that used TELEFILE, not those that went to a tax prep service or used NETFILE. It could be as little as 50,000.

I still don't see the point in scrapping TELEFILE and calling this a "win" One does not have to replace the other.

Cheers,
Doug

Bill said
Doug, you may be right that it's between 50,000 and a few hundred thousand.

But here's what CBC says:
http://www.cbc.ca/news/politic.....-1.4477378

But here's what the Minister of Revenue says:
https://www.canada.ca/en/revenue-agency/news/2018/01/minister_lebouthillierannouncesimprovementstotaxfilingservicesfo0.html

You are however correct in saying the former TELEFILE and this initiative are mutually exclusive, they are unrelated.  

Thanks Bill.

Ah, I was just going on what someone else said in this thread that it was related to TELEFILE being scrapped so I was just arguing that they should be treated exclusively. It seems that they were, and that it was the Conservatives that scrapped TELEFILE. Note the CRA's media handler, John Power's "spin", saying, "... the Telefile service had required users to complete their income tax and benefit return before calling, which meant they had to do their own calculations beforehand." Of course they did! That was its purpose. It wasn't meant to be a telephone equivalent of NETFILE, though that was possible; the "beauty" (if there is such as thing in income tax preparation! ) was that it meant those that filled their forms out by hand could save on printing and postage costs by "returning" the needed "line item" data to the CRA. 🙁

It's too bad.

Personally, perhaps we should just cut the tax rate to, say, 15-25% (three brackets: 15-, 20, and 25-), eliminate all non-refundable tax credits and deductions (including RRSP deduction, but raise the TFSA limit; excluding accrued capital losses), raise the basic personal exemption (federal and provincial) to around $20-24,000 per person so that low income earners pay no income tax, and have the CRA compile our tax returns for us (like Norway does). There'd be much less legal tax evasion loopholes, other than foreign assets held in non-participatory tax sharing jurisdictions.

Earnings within each of the three simplified tax brackets would be taxed as follows on the portion of earnings within that bracket:

$0-24,000 - 0% tax rate
$24,001-50,000 - 15% tax rate
$50,001-75,000 - 20% tax rate
$75,001- and higher - 25% tax rate

For businesses, eliminate all of those non-refundable tax credits (other than accrued capital losses and maybe investments in plant & equipment) as well as simplify things as follows, like personal taxpayers:

Small businesses - sliding scale
$0-250,000-10% tax rate
$250,001-350,000-11% tax rate
$350,001-500,000-12% tax rate
$500,001-625,000-13% tax rate
$625,001-750,000-14% tax rate

Medium- and large businesses
$750,001 and up-15% tax rate

Note: the above would be federal tax rates only.

Cheers,
Doug