T1 EFILE

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Paper filing and the T1 Condensed

Published: March 10/15

Even though EFILE is mandatory, there are cases when you will want to print and file a T1 return on paper:

  • A tax return is rejected by CRA and you receive a message saying you are required to paper file (most rejections can be resolved and retransmitted)
  • A taxpayer isn't eligible for EFILE
  • You elect to paper file a return (preparers can file 10 in this way without penalty)

Printing the T1 Condensed

T1 Condensed print setWhen you file a return on paper, print and send the T1 Condensed along with required slips and receipts as indicated in the T1 Guide.

The T1 Condensed is a shortened version of the tax return. It may contain one or more bar codes for CRA to scan and to facilitate data entry into their system.

Returns with EFILE exclusions may not have a bar code. In these cases, CRA will key the return in from the paper form.

TaxCycle includes a T1 Condensed print set that contains the forms you must include when paper filing. When you print the tax return, and you are required to paper file, TaxCycle automatically selects this print set.

For basic returns, all you may need to print is the T1 Condensed.

For other returns,  the print set may include one or two additional forms, but in general it is very small. For example, the GST370, T2038 Schedule 4 and Schedule 5 will be part of the print set if they are used in the return.

Filing a EFILE-rejected return on paper

If the CRA rejects a return and requires you to file it on paper:

  1. A message appears in the T1 EFILE box on the Transmit (F12) pane telling you that you must paper file.
  2. At the bottom of the T1 EFILE box, you'll see a message to Print T1 Condensed.
  3. Click this Print T1 Condensed link to add the rejection message to page 2 of the T1 Condensed.
  4. Print the T1 Condensed print set.
  5. Attach any applicable slips, RRSP receipts and supporting documentation to the return when mailing it in.
    Transmit pane with paper file required message

Paper filing when a return is not eligible for EFILE

Some taxpayers are not eligible for EFILE. For example, deemed residents or taxpayers not residing in Canada.

If the taxpayer falls under one of these exclusions, TaxCycle automatically detects that the return is not eligible to EFILE and that it must be filed on paper:

  1. On the Transmit pane, the T1 EFILE box displays a message stating that you must paper file.
  2. If you don't know why you're seeing this message, check the EFILE Worksheet (EFILEWS) to see what exclusion the taxpayer falls under.
  3. At the bottom of the T1 EFILE box, you'll see a message to Print T1 Condensed.
  4. Click this Print T1 Condensed link to add up to three exclusion messages to page 2 of the T1 Condensed.
  5. Print the T1 Condensed print set.
  6. Attach any applicable slips, RRSP receipts and supporting documentation to the return when mailing it in.

Electing to paper file a return

You can elect to paper file up to 10 returns without penalty. To do this in TaxCycle:

  1. Go to the EFILE Worksheet (EFILEWS).
  2. Answer Yes to question 13 on the first page of the worksheet.
  3. On the Transmit pane, the T1 EFILE box displays a message stating that you must paper file.
  4. At the bottom of the T1 EFILE box, you'll see a message to Print T1 Condensed.
  5. Click this Print T1 Condensed link to add the exclusion message to page 2 of the T1 Condensed.
  6. Print the T1 Condensed print set.
  7. Attach any applicable slips, RRSP receipts and supporting documentation to the return when mailing it in.

Barcode on 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

Barcode on the bottom of T1 Condensed

In general, you can expect the following:

  • The barcode shows on the T1 Condensed when a return is eligible to EFILE.
  • The barcode does not show on the T1 Condensed when a return is not eligible to EFILE.

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.

If you elect to paper file a return that normally eligible to EFILE, by answering Yes to question 12 on the taxpayer's EFILE worksheet (EFILEWS) (using up one of your 10 freebies), a barcode will still show on the T1 Condensed. 

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.