Eligibility

  1. Overview
  2. Eligibility
  3. Certified software for the 2016 NETFILE program
  4. After you have filed your return using NETFILE

NETFILE is available to most taxpayers. However some types of tax returns can’t be sent electronically. For a list of exceptions, see “Restrictions” and “Other restrictions” below.

Tax preparation service providers can’t use NETFILE to file tax returns for their clients. They have to use EFILE.

Restrictions

There are certain types of tax returns that can’t be sent to the Canada Revenue Agency (CRA) electronically:

  • an amended tax return;
  • a return for any taxation year other than 2013, 2014 or 2015; or
  • a tax return for another person (for example, if a taxpayer prepared a spousal/family return, each taxpayer must send his or her return separately).

You can’t use NETFILE to file your tax return if:

  • you are filing an income tax and benefit return for the first time with the CRA and the CRA does not have your complete date of birth on record;
  • you went bankrupt in 2015 or 2016 (does not include a proposal for bankruptcy);
  • you are a non-resident of Canada; or
  • you have income from a business with a permanent establishment outside your province or territory of residence (you have to fill out Form T2203, Provincial and Territorial Taxes for 2015  – Multiple Jurisdictions). See our list of other restrictions below.

You cant use NETFILE to change personal information such as your:

To learn more about updating personal information, go to:

Other restrictions

The following is a list of specific situations that prevent you from filing a tax return through the NETFILE service:

  • Your tax return was discounted by a third party.
  • You are considered a deemed resident (that is, you don’t have to pay provincial or territorial tax).
  • You are filing a tax return for an individual who died in 2015 or 2016.
  • Your social insurance number or individual tax number begins with 09.
  • You are an emigrant or non-resident of Canada. This excludes the following income and tax forms: Schedule A, Schedule B, Schedule C, income from NR4 slips, T4A-NR slips, NR-OAS slips, and NR-CPP/QPP slips, section 116 income, section 216 income, section 217 income, taxable capital gains from disposing of Canadian property if received as a non-resident, and Old Age Security Return of Income.
  • Your address is outside Canada.
  • You are electing to defer tax on a distribution of spin-off shares by foreign corporations.
  • You are claiming less than the maximum federal foreign tax credit.

 

You are reporting any of the following:

  • Canadian-source income from Lloyds of London;
  • registered disability savings plan income in field 125 and you are not eligible for the disability amount for self for the current tax year and for the first and second immediately preceding tax years (that is, there is no valid Form T2201, Disability Tax Credit Certificate, on record for at least one of these three years).
    Note: This exclusion is only meant to prevent an amount from being reported incorrectly in field 125 when it should have been reported in another income field on the return;
  • employment income earned from an international organization;
  • lump-sum pension income accrued to December 31, 1971;
  • more than six sets of financial statements;
  • an Ontario, Saskatchewan, British Columbia, or Yukon qualifying environmental trust tax credit (may also be referred to as a mining reclamation trust tax credit); or
  • a statement of qualifying retroactive lump-sum payments (Form T1198).

 

You are claiming any one of the following:

  • a federal non-business foreign tax credit for more than three countries;
  • a federal business foreign tax credit for more than three countries;
  • a deduction for scientific research and experimental development expenses;
  • an Alberta stock savings plan tax credit (Form T89);
  • a Saskatchewan royalty tax rebate (Form T82);
  • a Nova Scotia research and development tax credit recapture;
  • a claim that involves more than 22 children;
  • a Newfoundland and Labrador research and development tax credit (Form T1129); or
  • a deduction in field 207 that includes amounts calculated from a combination of at least two of the following forms:

    Form RC269, Employee Contributions to a Foreign Pension Plan or Social Security Arrangement for 2013 – Non-United States Plans or Arrangements;

    Form RC267, Employee Contributions to a United States Retirement Plan for 2013 – Temporary Assignments;

    Form RC268, Employee Contributions to a United States Retirement Plan for 2013 – Cross-Border Commuters.

You are reporting farming income with an AgriStability and/or AgriInvest Program application which involves:

  • farming income from a partnership reported on a T5013 slip or a partnership that includes a corporate partner;
  • a Canadian Indian reporting self-employed income which is “tax-exempt income”;
  • Selected financial data type 9 with more than 10 occurrences in section 7 and/or 8 from page 7 of Form T1273; or
  • Selected financial data type 9 with more than 8 occurrences in section 10, 11, and/or 12 from page 7 of Form T1273.

If you have to file an amended or previous-year tax return, or any other tax return that doesn’t qualify for NETFILE, go to Where to mail your paper T1 return.

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