Paper T1 Filers: Beware, It’s an 8-Page Return

Beth Graddon

What’s new in tax filing season 2020 now that it’s officially underway? There is $1 billion in uncashed cheques at CRA for 7.6 million people; paper-filed returns have been sent to 1.7 million people; plus, one more important detail that hasn’t had a lot of attention yet. That is, the tax return is 8-pages long this year!

The CRA has recently announced several improvements for the 2020 tax season, including an uncashed cheque feature that is available in My Account. Though previously accessible, it’s only recently gotten some big attention on Twitter and in the media, which begs the important question: why did it take so long for them to let people know? It’s money owed to Canadians that the CRA is not paying interest on. Tax and financial advisors should fill their clients in on they can access this money and how to spend it wisely once it arrives. Visit the CRA website for more information.

Also, noticeably absent from all the news is a rather important item. The fact that the familiar 4-page tax return has doubled in size and all of the line numbers have changed. It’s something that paper-filers in particular will want to review carefully. 

It’s important even though the continuation of the paper-filing program has been up for debate, with close to 90% of Canadians filing electronically based on last year’s statistics. After all, when tax professionals responded to a poll we published on this subject last year, paper filing received a strong endorsement, even with the File My Return option available by phone to low-income Canadians. 

It would appear as though the CRA got the message about prioritizing paper-filing. On February 25 (the day after tax season commenced for e-filers) they released a statement indicating that they have not forgotten the paper-filer. The 2019 income tax package has been mailed to the 1.7 million taxpayers who filed by paper last year and it contains some improvements. The CRA claims to have simplified the language, added notes about new benefits, and included a filing checklist.

Given the changes to the format of the return itself and the fact that all the line numbers have changes, it’s important that taxpayers start the filing process early. And, if you need help from a pro, don’t wait too long to make an appointment. It’s going to be a short, and intense tax season to get over 30 million newly designed personal tax returns filed this year.

Additional educational resources: Learn about the new 8-page tax return by picking up your copy of the Knowledge Journal for only $395 or study online to become a DFA-Tax Services Specialist™.

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