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Investing IntelligentlyPosts about investing in ETFs, mutual funds, large-cap and value stocks, personal finance, debt, taxes, and more. |
To Netfile Or Not To Netfile
I did a NETFILE once, or maybe it was a telefile (over the phone), I'm not sure. But then for many years I could not because I had some non-RRSP investments and there were some foreign dividends or something like that on them and that made me ineligible for the simpler T1 and NETFILE and telefile. So then I went back to paper returns but using software such as TaxWiz and Ufile.ca to create the return and then printing it. Nowadays, I no longer have those non-RRSP investments so I could use NETFILE but I choose not to because with NETFILE you don't have to send in your receipts, so I figure that with NETFILE a) I'll have a greater chance of being audited (I assume), which is a pain; b) all the receipts are with me, which means there is a danger of them all being destroyed which might be a bad thing (if I were audited); and c) there is no way for Revenue Canada to correct certain mistakes if I make one (and I have made some in the past) as they won't have the receipts. The main advantage of NETFILE is that you get your tax refund sooner. If you don't wait until the last minute to file a paper return you will get your refund fairly quick as well. If you are really that concerned about the quicker refund, you should consider getting your employer to take less tax off your paycheque in the first place.
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