CRA SimpleFile Service

TD1 Income Tax and Benefit Return

Published December 18, 2024 | Updated February 22, 2026

By L.Kenway BComm CPB Retired
This is the year you get all your ducks in a row! Start by starting ... and keep it simple. Consistency beats perfection.

Federal Budget 2025

Major Changes Coming to SimpleFile

The 2025 Federal Budget (Department of Finance, November 4, 2025) proposes significant changes to tax filing for lower-income Canadians. The Department of Finance indicates filing could begin as early as the 2026 filing season. (Budget documents use different ‘application year’ wording in different sections; the final start year will depend on the enacted legislation.)

This means, once the 2025 Federal Budget is passed into law, the CRA will gain discretionary authority to automatically file tax returns on behalf of eligible individuals who haven't filed in recent years. To qualify, individuals must have taxable income below the federal basic personal amount (plus age or disability amounts if applicable), have income only from sources with information returns already filed with the CRA, and not have filed a return in at least one of the previous three years.

Once the CRA processes an automatic return, individuals would have 90 days to review and request changes, and they can opt out of the service entirely. The Finance Department says, "If it is determined after a tax return has been filed by the CRA that the taxpayer did not meet the requirements for automatic tax filing, the tax return will be deemed not to have been filed."

This is a proposed measure and separate from CRA’s existing SimpleFile services. This proposal is open for public consultation until January 30, 2026, and represents a major shift from the current SimpleFile model.

It's unclear to me whether this automatic filing initiative will replace the current SimpleFile service, expand it, or operate as a separate program. Given that this budget must survive a confidence vote, implementation details and program naming may not be finalized for some time.

🦆Note: Bill C-15 was introduced on November 18, 2025, and passed second reading on December 10, 2025. It is currently in the committee stage and not yet passed into law. The bill must pass through both the House of Commons (3 readings) and the Senate (3 readings) before receiving Royal Assent to officially become law. MPs recently agreed to a accelerated study, with a deadline for amendments by Feb. 19, 2026, and committee-level clause-by-clause deliberations expected by Feb. 23, 2026, leading to a report by Feb. 25, 2026.

Current SimpleFile Service (2025 Tax Year)

2025 SimpleFile begins March 9, 2026 with or without an invitation.

SimpleFile (formerly called File My Return) is a free, streamlined service introduced by the Canada Revenue Agency (CRA) in 2023 to make the process of filing tax returns easier for Canadian taxpayers.

This program is designed to provide individuals with a straightforward and user-friendly experience. As many lower-income and vulnerable Canadians miss out on tax benefits by not filing an income tax return, SimpleFile aims to reduce the complexity these individuals often associate with tax filing.

It is available only to file the for the immediate prior taxation year. It is not available to file for any other year.

As the pilot program was successful, the CRA will be offering the service annually going forward. In 2026 for the 2025 tax filing season, the program runs from March 9, 2026 to January 31, 2027.

It's important to note that with the proposed budget changes not yet passed into law, this program may look very different starting with 2026 tax filing season.

How Do Canadians Access Government Benefits?

Filing your income tax return in Canada is tied to accessing most government benefits and credits. Here's how it works:

Income Tax Return and Benefits Connection

Annual Tax Filing Requirement: Filing your tax return determines your eligibility for benefits, updates your income information for benefit calculations, and maintains continuous benefit payments. You are required to file a tax return, even if you have no income to report if you want to receive the benefits you are entitled to.
Common Federal Benefits Accessed Through Tax Filing: There are two types of tax credits accessed by filing your tax return - (1) refundable such as the GST/HST Credit (renamed Canada Groceries and Essentials Benefit¹), Canada Child Benefit (CCB), and Canada Workers Benefit (CWB); (2) non-refundable tax credits such as Basic Personal Amount, Age Amount, Disability Tax Credit, Medical Expenses, Tuition Expenses, Moving Expenses, Charitable Donations, and Pension Income Amount.
Benefit Calculation Process: Benefits are based on your net income and your family's net income for certain benefits. They are automatically calculated when you file which adjuster your benefit amounts every July based on previous year's tax return.
Important Considerations: You must file on time to avoid benefit interruptions. Both spouses/common-law partners must file to receive certain benefits. It is your responsibility to notify CRA of address changes or significant life events. Some benefits require additional forms or applications (e.g., Disability Tax Credit).
Provincial/Territorial Benefits: Many provincial/territorial benefits are also automatically calculated based on your federal tax return.

Why Did The Government Implement SimpleFile? ¹
The 2024 SimpleFile pilot project was part of the Canada Revenue Agency's broader strategy to help vulnerable Canadians access their benefits by making tax filing more accessible. Many Canadians miss out on benefits they are legally entitled to receive simply because they don't file a tax return. The SimpleFile service shows the current government's commitment to removing barriers preventing eligible Canadians from receiving their benefits by providing a simplified, no-cost way to file their taxes.

Here is why this matters:

CRA SimpleFile service is a no cost to use (it's a free service) with multiple filing options (phone, digital, paper). The simplified process requires no calculations, no tax software or professional help. For the pilot project it was invitation-based so as to reach eligible individuals directly. [For 2025, it can be accessed without invitation through SimpleFile Digital.]
The CRA SimpleFile service focuses on vulnerable individuals with straightforward tax situations.
Many low-income Canadians miss out on benefits simply because they don't file taxes. Some may not realize they need to file to receive benefits, even with no income. Others might find the tax filing process too intimidating or complex.
Potential benefits accessed through the CRA SimpleFile service are the GST/HST Credit (renamed Canada Groceries and Essentials Benefit January 26, 2026), the Canada Workers Benefit, Provincial/territorial credits, Climate Action Incentive Payment / Canada Carbon Rebate (stopped March 15, 2025), plus other income-tested benefits.

How Does The CRA SimpleFile Service Work?

To use the SimpleFile service, here are some typical requirements and features you might expect:

Eligibility:
- Digital: available to eligible individuals with or without an invitation.
- Phone/Paper: is by invitation-only use. The CRA sends out invitations to taxpayers who meet specific eligibility requirements. If you receive an invitation, it means that the CRA has identified your tax situation as suitable for the SimpleFile service.
Simplified Forms and Instructions: The SimpleFile service provides simplified forms and step-by-step instructions to assist you throughout the tax filing process, which helps in reducing errors.
Filing Options: The goal of SimpleFile is to simplify the process of filing a tax return. While the service does offer multiple filing options, your invitation letter will indicate the filing option that is available to you. Along with SimpleFile Digital, you might also be able to file using SimpleFile Phone or SimpleFile Paper. As mentioned, it will depend on the instructions provided in your invitation. New this year, SimpleFile Digital is available without an invitation if you meet the eligibility criteria.
CRA My Account: If you choose SimpleFile Digital, you do NOT need to have access to the CRA's My Account service. You will be filing using SimpleFile Digital web form. However, if you have registered for CRA email notifications, your invitation will have to accessed through the CRA online portal My Account.
Income Sources: The service is tailored for those with common types of income below a certain threshold such as employment income, pension income, and simple investment income. If your income is derived from wages, interest, or retirement benefits, the CRA may send you a SimpleFile invitation.
Benefits, Credits, and Deductions: Medical, tuition, and moving expenses are not supported.
Personal Information: You will need to provide your Social Insurance Number (SIN), address, and other personal details to complete your tax return accurately.
Previous Tax Returns: You cannot file previous tax years using SimpleFile. Although having your prior year tax return information on hand can be helpful, it is usually already accessible through your CRA My Account if you have filed online in previous years.

Note that specific requirements and functionalities can vary, so it's always a good idea to visit the official CRA website or contact them directly for the most up-to-date and relevant information related to SimpleFile and your personal tax situation.

Who Is Eligible For CRA SimpleFile Services? ¹

SimpleFile is available to eligible individuals with a simple tax situation. Eligible taxpayers will receive an invitation letter from the CRA, which includes filing options and instructions. After filing, a notice of assessment will be issued.

SimpleFile Digital may be available to used with or without an invitation from the CRA. You only need to answer a series of quick questions. After filing, a notice of assessment will be issued.

Key eligibility criteria are:

Residency: You must be a resident of Canada for tax purposes between January 1 and December 31, 2025.
No Complex Situations: You did not sell a principal residence, were not bankrupt, and did not own specified foreign property over $100,000 CAD.
Income Limit: Your income must be below a specific, modest threshold that varies by province and age.
You are filing for yourself, not someone else.
Did not Repay in 2025: COVID-19 benefits (2020–2022), Home Buyer’s Plan, Lifelong Learning Plan
Moved to a new province / territory: You must update your address with CRA before you can use SimpleFile.

As mentioned, to be eligible for CRA SimpleFile service, a taxpayer must have income below a certain threshold, which varies based on age, province, and disability status. The income eligible (allowed sources) must come from one of these sources:

Benefits

Old Age Security (T4A(OAS))
Guaranteed Income Supplement or Net federal supplements (T4(OAS))
Canada or Quebec Pension Plan benefits (T4A(P))

Employment and Income Support

Employment income (T4)
Employment Insurance Benefits (T4E)
Workers' compensation benefits (T5007)
Social assistance payments (T5007)
Canada Emergency Benefits (T4A)

Investment Income

Some Interest Income (T5, box 13)

For Quebec residents, the SimpleFile program files only the federal tax return, not the provincial one with Revenu Québec.

Is Self-Employment Income Eligible?

No. As you can see from the above income sources, self-employment income (including gig work and T4A Professional Fees) automatically makes a taxpayer ineligible for this service. SimpleFile focuses on taxpayers with straightforward income sources, typically from employment, pensions, or social benefits.

Self-employed individuals usually have more complex tax situations that require additional forms and calculations, which are not covered by the SimpleFile service.

It is worth noting that having income from sources not listed also makes one ineligible for the SimpleFile service.

Other sources of income that are not eligible for SimpleFile are:

Rental income
Capital gains or losses
Foreign income
Investment income reported on a T3 slip

CRA SimpleFile Service Filing Options ¹

Each filing option is designed to be straightforward, and the invitation letter you received from the CRA or their online portal provides the necessary information and instructions.

What You Need Before You File

Social insurance number (SIN)
Date of birth
Mailing address
Spouse’s SIN and net income, if married or common-law
Access code (found on 2024 NOA or your CRA invitation)

SimpleFile Digital

2025 Tax Year: Offered with or without an invitation.
Availability: 21 hours a day from 6 am to 3 am Eastern time, from March 9, 2026, to January 31, 2027, seven days a week.
Process: File online using a web form, with no calculations required.
Completion Time: 10 to 20 minutes.
Steps: If you have an invitation, use the validation code from your invitation , provide personal information, and answer short questions. If you don't have an invitation, and meet the criteria, your access code is found on your 2024 Notice of Assessment.
Additional Criteria: You either have no income, or your income is limited to specific income sources and below a specific amount. It does not allow tax-exempt income
Make a Mistake: If you make a mistake, "close the session at any time before submitting your information and you can choose to start from the beginning again".

SimpleFile by Phone

2025 Tax Year: Is offered by invitation only. They will be sent in March and during the summer.
Availability: 21 hours a day from 6 am to 3 am Eastern time, from March 9, 2026, to January 29, 2026, seven days a week.
Process: You can auto-file your return over the phone without filling out forms or making calculations. There is no need to speak to an agent.
Completion Time: 5 to 10 minutes.Steps: Verify personal information and answer short questions using your phone keypad.
Additional Criteria: No income is required to use; you must have a recent filing history. If disconnected, you must call again. It does not allow tax-exempt income.
PIN Use: If you provide your PIN, the phone service offers an estimate of net and taxable income and any refund.
Make a Mistake: If you make a mistake or are disconnected during filing, hang up and start over.
Privacy and Security: Information is not saved during phone sessions.

SimpleFile by Paper

2025 Tax Year: Is offered by invitation only. They will be sent in the summer.
Availability: No closing date, but the form is specific to the tax year on the form.
Process: File quickly by completing and returning the provided paper form.
Completion Time: 25 minutes or less.
Steps: Provide personal information, confirm income details on the form, and mail it back using the prepaid envelope.
Additional Criteria: No income or filing history is required; it allows tax-exempt income.

If you need assistance during or after filing, call the CRA. You will receive a notice of assessment once your return has been assessed.

What To Do With This Information

If you or any of your family and friends have not been filing their tax returns, take the time to explain that they are likely missing out on benefits they are entitled to by not filing.

You can learn more at canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2025/simplefile-let-us-help-you-with-taxes.html

¹ Sources: CRA SimpleFile – February 16, 2026; Department of Finance Federal Budget 2025 (November 4, 2025); CRA SimpleFile services – Summer 2024 pilot; Department of Finance Legislation Passes to Deliver New Canada Groceries and Essentials Benefit February 12, 2026