Since February 5, 2024, more than 33 million tax returns have been filed by Canadians. Among them, a small percentage opted for a quick and simple method—filing by phone. This process, which takes approximately 10 minutes, is facilitated through the Canada Revenue Agency (CRA)’s SimpleFile by Phone (SFP) service.
Despite being a lesser-used method, 51,555 taxpayers took advantage of this option, proving that the system remains relevant even in today’s digital era. Introduced in 2018, the service streamlines tax filing by eliminating complex paperwork and calculations.
“Users can complete their tax return in as little as 10 minutes by responding to a few short questions,” said Kelly Williams, a director at the CRA’s individual returns directorate. “The CRA then uses the information it already has, combined with the user’s responses, to generate and submit the return automatically.”
Increased Invitations for 2024 Tax Season
In 2024, the CRA expanded the service, inviting two million Canadians to use SimpleFile by Phone, compared to 1.5 million the previous year.
Eligibility is based on income, income sources, and other criteria. Additionally, the CRA has provided a digital alternative since 2022, which will be accessible to 100,000 users this year.
This initiative is part of the CRA’s broader mission to make tax filing easier and less stressful. Williams emphasized that services like SimpleFile and the Community Volunteer Income Tax Program (CVITP) offer much-needed assistance to those who may find tax filing intimidating.
“We recognize that different individuals have varying needs. Some find the tax process overwhelming, and others need guidance. That’s where programs like CVITP and SimpleFile provide valuable support,” Williams noted.
Ensuring Timely Tax Filing for Benefits and Credits
The CRA’s priority is to ensure that individuals file their taxes on time so they can access the benefits and credits they are entitled to.
Key Features of SimpleFile by Phone:
- No forms or calculations required
- Quick filing in 10 minutes
- Automatic processing using existing CRA data
- Eligibility determined based on prior-year tax returns
The table below highlights who qualifies for this simplified filing method:
| Eligibility Criteria | Details |
|---|---|
| Income Level | Must fall within CRA’s eligibility range |
| Income Sources | Standard income, benefits, or interest-based investments only |
| Tax Complexity | No additional deductions or business-related tax claims |
| CRA Invitation | Must receive a direct invitation from CRA |
Who Can Use SimpleFile?
Eligibility for SimpleFile by Phone is determined through an automated system that reviews prior-year tax returns. Factors such as age, income level, and income sources play a role.
However, individuals with complex tax situations—such as self-employed persons or those with multiple tax slips—will need to use traditional filing methods.
Since the system is designed for simplicity, users do not perform calculations or interact with CRA agents. Instead, they confirm their identity and respond to eligibility questions.
For instance, Ontario residents may be asked about their total rent or property tax payments to determine eligibility for the Ontario Trillium Benefit.
Adoption and Future Expansion
While the number of users adopting SimpleFile by Phone remains relatively low, 94% of those invited ultimately file their returns through some method. To expand tax accessibility, the CRA initiated a summer pilot program targeting first-time filers and individuals who haven’t filed for multiple years.
“This pilot aims to encourage more individuals to take advantage of simple tax-filing options,” Williams said. “By using our summer filing service, taxpayers will be automatically invited to utilize our streamlined services in February.”
In summer 2024, more than 500,000 invitations were distributed, with the CRA still analyzing the program’s impact.
The SimpleFile by Phone service continues to provide an efficient and hassle-free tax filing option for eligible Canadians. By expanding invitations and incorporating new digital filing alternatives, the CRA is making tax compliance easier while ensuring taxpayers receive their rightful benefits and credits. For those who qualify, this service offers a stress-free alternative to traditional tax filing methods.
FAQs
Who qualifies for the CRA’s SimpleFile by Phone service?
Only taxpayers who receive an invitation from the CRA and meet income and tax complexity criteria can use the service.
How long does it take to file using SimpleFile by Phone?
The process takes approximately 10 minutes, as users only need to answer a few short questions.
Can self-employed individuals or those with multiple tax slips use this service?
No. SimpleFile is designed for straightforward tax situations with standard income sources only.