Paul isn't sure if he needs to file a tax return to get his tax credits 
, although he intends to do so. But just what does he mean by “filing a tax return”?
An individual who has earned money during the year from working, running a business, selling property, or other methods may have to complete a tax return and send it to the CRA.
There are several ways to file a completed tax return with the CRA.
The fastest growing method is electronic tax filing. The benefits of filing electronically include:
- Fast processing - In most cases, an electronically filed tax return can be processed in about two weeks resulting in faster assessment notices and refunds;
- Greater accuracy - Electronic filing eliminates the need for the CRA to manually key tax data;
- Availability - Electronic filing lets individuals send in their tax returns seven days a week;
- Security - State-of-the-art encryption technology and security procedures protect personal information at all times;
- Electronic confirmation - Users will receive electronic confirmation that their tax return was received; and
- Environmentally friendly - Electronic filing is an almost paper-free system.
The CRA's electronic tax-filing services are known as EFILE, TELEFILE, and NETFILE.
EFILE is an automated system that allows registered electronic tax-filing service providers (businesses) to send individual income tax return information to the CRA electronically. An individual can prepare his or her own tax return, or have a service provider do it.
TELEFILE is a method of filing a completed tax return using a touch-tone telephone. For the most part, this service is for:
- individuals who file simplified tax returns;
- seniors receiving pension income; and
- individuals who do not need to pay tax but need to file a tax return to get tax credits.
NETFILE lets individuals file income tax and benefit returns over the Internet using NETFILE-certified tax preparation software or Web application. NETFILE is available every year from mid-February until the end of September. You need to buy a NETFILE-certified tax preparation software package or Web application, but the NETFILE service is free. Individuals with low or modest income may qualify for free offerings. To find out more, visit www.netfile.gc.ca.
For more information about these tax-filing options, go to our Web site at www.cra.gc.ca/eservices or see Sending a tax return.
Another way of filing a tax return is to prepare a paper tax return and mail it to your tax centre. Your postal code determines your tax centre.
We process a tax return when it arrives at one of our offices. The tax return is reviewed, and the information is entered into a computer and corrected if needed.
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 To find out which tax centre to send your paper tax return to, see our Web site at www.cra.gc.ca/tso.
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After the tax return has been processed, we will mail you a Notice of Assessment
showing any changes or corrections made to the tax return (such as identifying and correcting a math error). Sometimes, the CRA finds that an individual paid too much tax during the year. In such cases, the CRA will issue a refund.
