Updated: 2024-04-25
Even though T1 EFILE is mandatory, there are cases when you will need to print and file a T1 return on paper:
- When a return is rejected by the CRA with a message requiring paper filing.
- When a taxpayer isn’t eligible for EFILE.
- If you elect to paper file a return (preparers can file 10 returns this way without penalty).
Paper Filing a T1 Condensed Form
To file a paper return, print and mail the T1 Condensed along with the required slips and receipts. The T1 Condensed is a shortened version of the tax return. It may contain barcodes for the CRA to scan and to facilitate data entry into their system.
How to Elect to File a Paper Return
You can elect to paper file up to 10 returns without penalty. To do this in TaxCycle:
- Go to the EFILE worksheet, EFILEWS.
- Answer Yes to question 14, This client’s return is eligible to EFILE, but the client wants it to be mailed.
Print and Mail the T1 Condensed
- If a return is not eligible to EFILE, a message appears in the T1 EFILE box on the Transmit sidebar if the return must be paper-filed.
- Click the EFILE worksheet (EFILEWS) link to review exclusions. They are also automatically included on page 2 of the T1 Condensed.
- Click the Print link to open the Print sidebar.
- When paper filing is required, the CRA Condensed print set appears in the Print sidebar.
- For basic returns, this print set may only contain the T1 Condensed form. Sometimes a barcode prints on page 1. Exclusions always print on page 2. The GST370, T2038 Schedule 4 and Schedule 5 will be part of the print set if they are used in the return.
- Click the Print icon on the CRA Condensed print set box to print just that set.
- Or, click the Print Selected button to print it along with other print sets.
- Attach any applicable slips, RRSP receipts and supporting documentation to the return when mailing it to the applicable tax centre. To find the address for mailing a paper tax return, visit the Where to mail your paper T1 return page on the CRA website.
Barcode on Page 1 of the T1 Condensed
Preparers occasionally ask us when they should expect to see a barcode at the bottom of page 1 of the T1 Condensed. Questions about this often arise because there is one circumstance where you can paper file a return and see a barcode on the T1 Condensed.
In general, you can expect the following:
- The barcode shows on the T1 Condensed when a return is eligible to EFILE. For example, if you elect to paper file a return that is normally eligible to EFILE, by answering Yes to question 14 on the taxpayer’s EFILE worksheet (EFILEWS) (using up one of your 10 freebies).
- The barcode does not show on the T1 Condensed when a return is not eligible to EFILE.
Also, the barcode does not show if the taxpayer did not reside in Canada for the full year. No barcode will be shown if there is an entry or exit date entered on the Info worksheet.
Finally, when it comes to barcodes, what you see on the screen is what will print. If you see a barcode on the T1 Condensed when viewing it in TaxCycle, that is exactly what will print to paper. Learn how to read or copy the contents of a bar code in the Barcode Contents help topic.