Canada, tax season is just around the corner! On Monday, February 24, 2025, the Canada Revenue Agency (CRA) will officially open its NETFILE and ReFILE services, offering eligible Canadians a fast, secure, and free way to file their personal income tax returns online.
Whether you’re an experienced tax filer or a first-timer, this service is designed to simplify the process, expedite refunds, and eliminate unnecessary paperwork.
In this detailed guide, we’ll break down all the essential information about NETFILE, who can use it, how it works, and the best ways to maximize the benefits of the service during the 2025 tax season.
What is NETFILE and Why Is It Important for Canadians?
NETFILE is the CRA’s electronic tax filing service, which allows Canadians to submit their personal income tax and benefit returns directly to the CRA through certified tax software.
This service was introduced to modernize the tax process by eliminating the need for paper forms and mailing, making the filing process faster and more efficient. Here are a few key reasons why NETFILE is so beneficial:
- Speed: If you opt for direct deposit, your tax refund could arrive in as little as two weeks.
- Accuracy: NETFILE-certified software includes built-in checks to reduce errors, ensuring your filing is correct and reducing the chances of delays or audits.
- Instant Confirmation: Upon submitting your return, you will receive an immediate confirmation that the CRA has received it.
- Less Paperwork: There is no need to send physical receipts or documents unless the CRA requests them later.
- Convenience: This service eliminates the need for paper filing, making it a quicker and more convenient way to file your taxes.
Whether you’re seeking a refund, updating a previous return with ReFILE, or simply avoiding the hassle of paper forms, NETFILE is a great tool to save you time and effort.
When Can You Begin Filing Your Taxes? NETFILE’s 2025 Schedule
Mark your calendars—starting February 24, 2025, you can begin using NETFILE and ReFILE to submit your 2024 returns or amend previous filings from 2020 to 2023. These services are available 21 hours a day, providing ample flexibility to file at your convenience.
However, please note there is a brief daily maintenance window from 3 a.m. to 6 a.m. Eastern Time, so plan accordingly if you’re filing late at night.
This year’s NETFILE launch aligns with the CRA’s ongoing efforts to make tax filing more efficient for Canadians.
Who Is Eligible to Use NETFILE?
NETFILE is available to most Canadian taxpayers, but there are some important eligibility criteria to keep in mind. Generally, if you’re filing a personal income tax return for 2017 to 2023, you’re eligible to use NETFILE as long as none of the following restrictions apply to you:
Ineligible Taxpayers for NETFILE
- Non-residents of Canada: If you live outside Canada, you are not eligible unless you are a newcomer with a Social Insurance Number (SIN) starting with a zero.
- Bankruptcy Filers: If you declared bankruptcy in 2023 or 2024, you must file on paper.
- Tax Professionals: Tax preparation services must use EFILE instead of NETFILE.
- Deceased Individuals: NETFILE cannot be used to file a return for someone who passed away in 2023 or 2024.
- Complex Tax Situations: Certain income types or credits (such as foreign tax credits for more than three countries or farming income with AgriStability) make you ineligible.
If you’re unsure about your eligibility, it’s advisable to check the CRA’s guidelines to confirm whether NETFILE is right for your situation.
Benefits of Using NETFILE in 2025
Choosing NETFILE over traditional paper filing offers several advantages:
Speedy Refunds
With NETFILE and direct deposit, you can receive your refund in as little as two weeks—no more waiting for checks to arrive in the mail.
Guaranteed Accuracy
The NETFILE-certified software helps catch any mistakes before you submit, reducing the risk of errors and audits.
Instant Confirmation
Once you submit your return, you’ll receive an immediate confirmation that the CRA has received your filing.
Less Paperwork
You won’t need to mail receipts or documents unless the CRA asks for them, helping you avoid clutter.
Free Filing Options
A variety of free, NETFILE-certified software options are available, making it easy for Canadians to file at no cost.
These benefits are especially helpful during tax season when Canadians are looking for quick, accurate, and efficient ways to handle their tax filing.
How to File Your Taxes for Free Using NETFILE
One of the main attractions of NETFILE is the availability of free tax software. Several CRA-certified programs are available at no cost, and many others operate on a pay-what-you-want basis. Below are some of the top free options for 2025:
| Software | Platform | Eligible Tax Years | Cost |
|---|---|---|---|
| Wealthsimple Tax | Online | 2020-2023 | Free |
| StudioTax | Mobile & Desktop | 2017-2023 | Free |
| CloudTax Free | Mobile & Online | 2018-2023 | Free |
| GenuTax Standard | Desktop | 2017-2023 | Free |
| H&R Block Free | Online | 2019 | Free |
Some paid options like TurboTax, UFile, and TaxTron also provide free versions based on income or tax situations.
To get started, visit the CRA’s list of certified software, select your platform (mobile, online, or desktop), and download the software. Many options come with extra features like Auto-fill My Return and Express NOA, which speed up the filing process.
Pro Tip: NETFILE-certified software allows you to file up to 20 returns per computer or account, which is great if you’re helping family members or roommates with their tax filings.
Step-By-Step Guide: Filing Your Taxes with NETFILE
Here’s a simple, step-by-step process for filing your taxes using NETFILE:
- Choose Your Software: Pick a NETFILE-certified tool that is updated for 2024 returns.
- Gather Your Documents: Have your SIN, tax slips (T4, T5, etc.), and receipts ready. Use Auto-fill My Return for a quicker process.
- Enter Your Information: The software will guide you through entering your income, deductions, and credits, flagging any errors as you go.
- Submit Your Return: Once everything is complete, hit “file” to submit your return to the CRA. You’ll receive a confirmation number instantly.
- Track Your Refund: Log into My Account to track your refund status, or wait for your Notice of Assessment (NOA).
If you encounter issues, you can contact the CRA’s Individual Tax Enquiries line at 1-800-959-8281 (or 613-940-8495 outside Canada/U.S.).
NETFILE Restrictions: Who Can’t Use It?
Some scenarios disqualify Canadians from using NETFILE. Here are the key restrictions to be aware of:
- Older Returns: Tax returns from before 2017 cannot be filed via NETFILE.
- Complex Income: Certain types of income (such as foreign income or income from international organizations) may require paper filing.
- Foreign Tax Credits: If you are claiming credits for more than three countries, you cannot use NETFILE.
- Farming Income: If you’re involved in high-volume farming or agricultural programs under AgriStability, NETFILE is not available.
- Personal Info Changes: If you need to update your name or address, do so through My Account or mail, not NETFILE.
ReFILE Option:
If you need to amend your return, ReFILE can be used to make changes to 2020-2023 returns that were originally filed electronically.
What Happens After You File?
Once you’ve submitted your return via NETFILE, the CRA will conduct a quick review and issue a confirmation number to prove your return was received.
Refund Timeline:
- Direct deposit: Expect a refund in about two weeks.
- Cheque: If you opted for a cheque, expect it in 4-6 weeks.
Notice of Assessment (NOA):
Your NOA will be sent by mail unless you’ve opted to receive it via email through My Account.
If further verification is needed, the CRA may contact you, so ensure your contact information is up to date.
NETFILE offers Canadians a simple, fast, and secure way to file their taxes. With features like speedy refunds, guaranteed accuracy, and instant confirmation, this service is an ideal choice for most taxpayers. Whether you are filing for the first time or updating a previous return, NETFILE is designed to save you time and make tax season stress-free.
By taking advantage of free software options and the direct deposit feature, you can maximize the benefits of NETFILE in 2025. Make sure you’re ready to file as soon as February 24 to avoid any last-minute rush.