Which is Better, Income Tax Filing Online or a Paper Return?

Do you file your income tax online or on paper? It depends on your personal preference, your tax situation and how comfortable you are with technology. Both have their pros and cons:

Filing Income Tax Online:

Pros:

  1. Speed and Convenience: Online is faster and more efficient. The Canada Revenue Agency’s (CRA) Netfile service lets you submit your return electronically and reduces processing time. Immediate Confirmation: When you file online you get immediate confirmation that the CRA has received your return. That’s reassuring. Error Checking: Many online tax software programs have built-in error checking so you’re less likely to make mistakes on your return.Automatic Updates: Online tax software is updated regularly to reflect changes in tax laws and regulations so your return is accurate and up-to-date.Direct Deposit for Refunds: If you’re due a refund, choosing direct deposit when you file online means you’ll get your refund faster than by mail. Accessibility: You can file your taxes from anywhere with an internet connection so it’s flexible and convenient.

Cons:

  1. Technology: Some people may not be tech-savvy or have internet access. Security: While security measures are in place, there may be concerns about the security of your personal information when filing online. Use secure and reputable tax software.

Filing a Paper Return:

Pros:

  1. Old School:
    Some people prefer the old way of doing things and have been filing paper returns for years. Hands-On Control: Filling out a paper return gives you more hands-on control and visibility into your tax documents. No Technology Barriers:
    If you don’t have reliable internet access or aren’t tech-savvy, a paper return may be the more accessible option.

Cons:

  1. Processing Time:
    Paper returns take longer to process than electronic ones. That means a delay in getting your refund or resolving tax issues. Increased Chances of Errors: Without the automated error checking of online software, there’s a higher chance of making mistakes when filling out a paper return.Limited Forms Availability: Paper tax forms may be limited and you may have to get them from a Canada Post office or request them by mail.No Immediate Confirmation:
    Unlike filing online, you won’t get immediate confirmation that the CRA has received your return. You’ll have to wait for confirmation by mail.

In short, both have their advantages and it’s up to you. If you’re tech-savvy and want to be efficient, online may be the way to go. If you prefer a hands-on approach or have technology barriers, a paper return may be the way to go. Consider your own preferences, comfort level with technology and the complexity of your tax situation. If unsure, talk to a tax pro.

Visit the Tax Warriors if you have questions about your tax return.


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