A taxpayer may need to file an amended tax return to correct or update any information provided on the tax return. Fortunately, taxpayers can do so immediately online using Refile or ‘Change My Return’ in CRA’s My Account.

The following is an overview of CRA’s Refile and ‘Change my Return’ options that are available to amend the Canadian income tax return.

 

How To Amend Canadian Income Tax Return

ReFILE Canadian Tax Return

ReFILE is an online service that lets individuals and tax preparers send online adjustments for income tax and benefit returns with certified NETFILE software and E-FILE software.  To use ReFILE the tax return must have been filed electronically.

Individuals who used NETFILE to file their return can use ReFILE to send adjustments for 2017 and 2016 returns.

Tax preparers who use an E-FILE service can send adjustments for 2017, 2016, and 2015 returns. If you have questions about the functionality available in your software package, please contact your software provider.

Use  ReFILE with the same certified NETFILE software you used for filing your income tax and benefit return. If you did not file your return online, you will have to mail a paper Form T1-ADJ, T1 Adjustment Request, to the Canada Revenue Agency (CRA).

ReFILE cannot be used for certain situations, if the individual:

  • is amending an election or wanting to make an election (for example, using Form T2057, Election on Disposition of Property by a Taxpayer to a Taxable Canadian Corporation)
  • is applying for child and family benefits
  • is allocating a refund to other CRA accounts
  • is applying for the disability tax credit
  • has a reassessment in progress
  • has a first return that has not been assessed (you can view the Express Notice of Assessment (NOA); view the regular NOA on Represent a Client or My Account for Individuals; or have a paper NOA on hand to validate that a return has been assessed)
  • is subject to provincial or territorial income tax in more than one jurisdiction
  • the first return was filed by the CRA as a 152(7) assessment

Note that, only nine adjustments are allowed through ReFILE per tax year for each taxpayer. If you go over the limit, you will get an automated response saying the limit has been reached and explaining how to send a paper request.

ReFILE cannot be used to make changes to the personal information, such as marital status, address, direct deposit details, and other such information. Instead, taxpayers should use CRA’s ‘My Account’ to change personal information provided on the tax return.

 

CRA’s My Account ‘Change My Return’

Change my return is a secure My Account service that allows you to make an online adjustment for the 10 previous calendar years.  In order to use the “Change My Return” service, taxpayers must have “My Account” setup with the CRA.  My Account allows you to track your refund, view or change your return, check your benefit and credit payments, view your RRSP limit, set up direct deposit, receive online mail, and so much more.

For more information on how to set-up My Account, visit the CRA website.

Taxpayers should wait until they receive their ‘Notice of Assessment’ (NOA) before requesting to make any changes to their tax return.  Furthermore, this request to make changes to a tax return can only be made within 10 years from filing the actual tax return. For example, a request to make changes to 2008’s tax return can only be made until 2018.

CRA’s ‘Change My Return’ CANNOT be used to make changes in a tax return that:

  • has not been assessed
  • is a bankruptcy return
  • was a return filed prior to the year of bankruptcy
  • has nine or more reassessments existing for a particular tax year
  • has carryback amounts such as capital or non-capital losses
  • was filed by an international or non-resident client (including deemed residents of Canada, newcomers to Canada, and individuals who left Canada during the year)
  • changes the elected split-pension amount
  • has income from a business with a permanent establishment outside your province or territory of residence (you have to complete Form T2203, Provincial and Territorial Taxes for 2017 – Multiple Jurisdictions)
  • was arbitrarily filed by CRA

 

Amend Canadian Tax Return By mail

If you are unable to use ReFILE of the “Change My Returns” options,  you must request adjustment by regular mail.   Send both of the following to your tax centre:

  • a completed Form T1-ADJ, T1 Adjustment Request
  • all supporting documents for the change, including those for the original assessment, unless you have already sent them to us

Send your current year return separately from any request to change a return for another year.

In cases wherein the taxpayer wishes to disclose some additional previously unreported income, they may need to rely on voluntary disclosure programs (VDP).

 

It is highly recommended that taxpayers, who wish to report any unreported income or wants to make changes to a tax return reach out to a tax professional, as  he/she could guide the taxpayer with the right approach.

 

AG TAX LLP CAN HELP

If you have any tax-related queries, need assistance with tax planning or filing your tax returns please contact us. Our team comprises of highly experienced tax professionals with extensive knowledge of US and Canadian tax laws as well as cross-border compliance.

Furthermore, as a full service accounting firm, AG Tax assures complete assistance with even your most complex tax needs.

We can assist with:

  • Canadian Personal and Corporate Tax Returns
  • Cross Border Taxation and Business Planning
  • US Personal and Corporate Taxation
  • Disclosure of Foreign Assets and other information filings
  • Retirement Planning
  • Estate Planning, Inheritance Tax Advice

To obtain a quote or to arrange for a tax consultation to discuss your US Canada cross border tax  queries, please contact us at:

  • 604-538-8735 (Greater Vancouver Area, BC)
  • 780-702-2732 (Greater Edmonton Area, AB)

 

Disclaimer: The information in this publication is accurate as of the time of its publication. AG Tax assumes no responsibility for changes to tax legislation subsequent to the publication of this document. The information provided is for general information purposes only and should not be acted upon without seeking professional advice. If you would like to engage our services, please contact our staff and obtain authorization to send our firm confidential information. A client relationship is not created by the transmission of information. A client relationship is only formed with our firm when a scope and engagement letter signed by the firm and the potential client detailing the terms of engagement is present.