CRA Expands Automatic Tax Filing for 2025: Eligibility & What You Need to Know

The Canada Revenue Agency (CRA) is expanding its automatic tax filing services for the 2025 tax season, a move designed to simplify the process for individuals with lower or fixed incomes. With an estimated two million Canadians invited to participate in the enhanced SimpleFile program, the CRA aims to make tax filing more accessible and ensure that eligible individuals receive the benefits and credits they are entitled to.

What Is SimpleFile?

SimpleFile is an initiative aimed at helping Canadians with straightforward tax situations file their income tax and benefit returns efficiently. The program includes two primary filing options: SimpleFile by Phone and SimpleFile Digital. Both services are designed to make tax filing quicker, easier, and free of charge.

• SimpleFile by Phone: Available daily from February 24, 2025, between 6 a.m. and 3 a.m. Eastern Time. Users answer a few questions over the phone and can complete their return in 5 to 10 minutes. Those with a Personal Identification Number (PIN) can even receive an estimate of any refund during the call.
• SimpleFile Digital: Also launching on February 24, 2025, this service allows users to file their taxes using a computer or mobile device in 20 minutes or less without needing to speak with a CRA representative.

Who Is Eligible for Automatic Tax Filing?

To qualify for SimpleFile, individuals must meet specific criteria, including income level and source restrictions. The program is primarily targeted at those who have low or fixed incomes and a straightforward tax situation.

Income Thresholds

Eligibility depends on an individual’s total income, which varies based on factors such as age, province of residence, and disability status. While exact income thresholds may vary, the CRA generally invites those whose earnings fall below a certain level.

Eligible Income Sources

SimpleFile is designed for individuals who receive income from specific sources, including:

1. Government Benefits:

• Old Age Security (OAS) – T4A(OAS)
• Guaranteed Income Supplement (GIS) / Net federal supplements – T4A(OAS)
• Canada or Quebec Pension Plan (CPP/QPP) benefits – T4A(P), including disability benefits

2. Employment and Related Supports:

• Employment Income – T4
• Employment Insurance (EI) Benefits – T4E
• Workers’ Compensation Benefits – T5007
• Social Assistance Payments – T5007
• Canada Emergency Benefits – T4A (for those who received pandemic-related income support)

3. Limited Investment Income:

• Certain interest income – T5, Box 13

Individuals do not need to have an income to use SimpleFile by Phone, but they must have a recent filing history with the CRA. For SimpleFile by Paper, tax-exempt income may be reported.

How to Use SimpleFile?

The CRA is proactively inviting eligible Canadians to use SimpleFile through mail and CRA online accounts. If selected, individuals will receive instructions on how to proceed.

• SimpleFile by Phone: Users can call the CRA and follow the automated prompts to file their tax return.
• SimpleFile Digital: Users log into their CRA account, complete a short online form, and submit their tax return digitally.

The entire process is designed to be user-friendly, with no complex calculations required.

Why This Expansion Matters?

The CRA’s expansion of automatic tax filing is significant for several reasons:

• Increases Access to Benefits: Many individuals who qualify for government benefits and tax credits fail to claim them due to barriers in tax filing. This initiative ensures that eligible Canadians receive the financial support they are entitled to.
• Simplifies the Process: Filing taxes can be daunting, particularly for seniors, individuals with disabilities, and those with limited internet access. The phone-based filing option removes technological hurdles.
• Reduces Errors: Since the CRA already has much of the required tax information, using SimpleFile minimizes mistakes that can occur in manual filings.

Looking Ahead: The Future of Automatic Tax Filing

The CRA has indicated that this expansion is part of a broader initiative to make tax filing more accessible across Canada. While the 2025 tax season will see a major increase in participation, further enhancements may be introduced in the coming years.

For those who are unsure of their eligibility, the CRA recommends checking their CRA My Account (canada.ca/my-account) or calling the agency’s support lines. Further details on SimpleFile can be found on the official CRA website: canada.ca/simplefile.

With these new enhancements, more Canadians than ever before will be able to file their taxes effortlessly and ensure they receive all the benefits they deserve.

This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.