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In addition, you want to make sure that you are either getting the most significant tax refund you can or paying the least amount of income tax, whichever situation applies to you. This is where tax software can be helpful. For a low to no cost, it can help you do your taxes accurately and efficiently.
Where To File Your Taxes
When it comes to filing your taxes, you can do so by mailing your tax return directly to the Canada Revenue Agency or Netfiling online. If you file via mail, you will have to file the paper tax forms you filled out during your tax preparation. Netfiling online allows you to quickly use a user-friendly interface.
Either of these methods can be done yourself or done by an accountant. Either way, filing your taxes is fairly simple and can be done in just a few minutes.
Easiest Way To File
The easiest way to file tax returns during tax season is to use tax software and Netfile them. This can be done from anywhere and on any device. Plus, if you use the same software year after year, all of your information is saved, and only changes need to be updated.
Tax Software That You Can Choose From in Canada
In Canada, there are quite a few Canadian tax return software’s to choose from. The cost of this software will depend on the type of taxes you are filing. For example, if you just have a standard T4 to file, that is going to be the cheapest and may even allow you to use the free versions. If you have your own business, self-employment taxes are going to be a bit more complicated and more expensive. The more you need to claim, then the more complex your taxes become and the more they cost.
Let’s examine the different tax software options available and determine what may work best for your individual tax situation.
Turbo Tax
TurboTax is a great tax software option with unique features. Like most of the other software available, it is CRA (Canada Revenue Agency) certified and easy to use. Depending on what you are filing, the cost will range anywhere from $0 to $120.
TurboTax provides step-by-step instructions to facilitate simple tax returns, and if you have a paid version and add-ons, you can transfer tax information from previous years. They also have assist and review versions for both standard returns and business returns. You can also have one of their tax experts go over your final return and give advice before you file it.
Throughout the software, it also allows you to look for over 400 credits and tax credits and deductions to help you save money. While it can be the most expensive option at $120, that is usually for business returns, which can cost significantly more when you go to a tax professional.
H&R Block
The online tax software is a bit cheaper. The cost ranges from $0-$29.99. Like turbo tax, H&R Block, online tax software, is also CRA certified, but it is also a NETFILE certified tax software. Depending on the version of this software you choose, you can get tech support and tax tips throughout the process to help you make the most of your return. You can even get audit protection and digital return storage.
If you don’t want to file your return through their online tax filing services, you can take it to any H&R Block branch after you have completed it. You can then get it filed there, and you can have a tax professional take a look at your return before you file.
SimpleTax
SimpleTax is another CRA-certified software. If you don’t know the name SimpleTax, you may know this software as Weathsimple Tax since the name was recently changed. Unlike H&R Block and TurboTax, this software isn’t available on Android devices. That being said, it is completely free and has a 100% accuracy agreement.
As far as free software goes, they have a few more options than most other free software. There are also no stipulations on which Canadian taxpayers this software is free for. No matter your total family income, you do not have to pay unless you would like to donate. SimpleTax also has free customer support, an RRSP calculator and partial auto-fill returns. Their search box helps you add expenses quickly, and since they have a 100% guarantee that you will be reimbursed if they make a mistake, you have to pay a penalty.
Overall, for free tax filing software, this is a great option to file your tax return. Especially if your return is simple, you can make any kind of return with this software. While it is free, they do give you the option to pay any amount you like once you complete your return. Overall, SimpleTax is a great way to do your taxes online.
StudioTax
StudioTax is also a CRA-certified free tax return software. While most users can access it, Quebec residents can only use the Mac version. Unlike SimpleTax, StudioTax does not require an internet connection. While StudioTax is free, it’s only accessible to those with an income less than $20,000; for everyone else, it is $15.
You can also download this software on your mobile device. This gives you easy access to all your returns. On a single license, you can process up to 10 returns in 1 tax year, all at a low cost.
UFile
This is another excellent option if you are looking for free tax software. Like most tax software, it is also CRA certified, just like the others we have mentioned, and you can store up to 9 years worth of income tax returns. That being said, the free version isn’t available to everyone. You must be:
- A student
- Have a simple return
- An income of less than $20,000 per year
- A first-time filer
As a paying customer, the cost is only $19.99, then $12 plus tax for a spouse. That being said, UFile is excellent because it allows you to use CRA’s ReFile service if your return is the same as the previous year. Of course, this only works if you used UFile the previous year as well. Whether you use the free or paid version, UFile is another excellent way to get your taxes done affordably and efficiently.
Best Tax Software for Small Businesses
If you own a small business and want to do your taxes yourself, you may be wondering which of the software above would be your best choice. While all of these software are great, TurboTax is the most recommended for small businesses.
This is because TurboTax helps you every step of the way. They have a specific TurboTax version for small businesses, and you can have an expert go over your tax return before you file it. TurboTax is transparent throughout the whole process and alerts you to where you could save more money or if you have any potential issues throughout your return.
While TurboTax is more expensive than other software, it offers an accuracy and maximum refund guarantee. Because it is so user-friendly, it is a great way for small businesses to do their taxes affordably.
Best Tax Software for Professionals
The best tax software in Canada for professionals is a toss-up between SimpleTax and TurboTax. While both have similar features, SimpleTax doesn’t support certain programs for farmers or certain corporate returns.
If you don’t need any of those features, SimpleTax is a great option. If you do, you may be better off using TurboTax. While you may need to pay for the version of TurboTax that you need, you will get an accurate return, and it will be saved for you to go back and look at if you need to.
Best Tax Software for Accountants
If you choose to use an accountant to do your tax return instead of doing it yourself, they are likely using software different from the ones above. One of the most popular is Taxprep. Not only does this software help tax professionals get you the best return possible, but it also has diagnostics, built-in audit reviews, and over 2,400 diagnostic and audit checks.
While this software is much different from the ones that allow you to do the taxes yourself, it focuses on helping the accountant to get you as accurate as possible. Since accountants are aware of the vast amount of tax rules out there, this software doesn’t need to focus so hard on guidance as it does on accuracy.
Best Free Tax Software
It’s no surprise that the best free income tax software is SimpleTax. We have already gone over the positives of that software. A close second to this is UFile. For most users, UFile is free. Especially if you have a simple return of one T4. In a case like this, UFile is an excellent choice for making your return simple and affordable.
The main difference between these two software programs is that UFile allows for business taxes, while SimpleTax only allows for employment taxes. That being said, SimpleTax is free or by donation for all returns, while UFile does charge for some employment returns and all business income returns.
TurboTax Vs. UFile
In a lot of ways, these two software are very similar. That being said, depending on the type of return you file, UFile can end up being more expensive than Turbotax or vice versa. It's all based on your tax situation. TurboTax will also give you a refund with their 100% accuracy policy. UFile has a Triple Guarantee Policy. The details are listed in their user agreement.
With UFile, you can keep up to 9 years worth of tax returns. This is ideal because the CRA says you should keep your tax records for 7 to 9 years, just in case of an audit. TurboTax only stores the previous year's tax returns.
The thing with TurboTax is that you can pay a bit extra to have your return reviewed by a tax professional. This is ideal for more complex tax returns, but it isn’t always necessary for everyone. UFile is also an extremely accurate service and has its own positives. It allows you to ReFILE if you have the same return as last year and have autofill.
Both are great software in themselves; it just depends on your individual tax needs and which software will fit you better. Generally, the prices are reasonable for both, so whichever you choose, you still won’t spend a fortune to complete your taxes.
TurboTax Vs StudioTax
When you look at TurboTax and StudioTax, you will see that they both offer similar capabilities. Both of these software programs can accommodate standard returns, self-employed income returns, rental income, capital gains, and anything else you find you may need to add to your return. While both of these are similar in this capacity, there are some differences.
We already know that StudioTax is cheaper than TurboTax. Still, as we mentioned before, the main thing that sets TurboTax apart is that you can have a tax expert go over your return before submitting it. TurboTax also has a Q and A feature to help you get the most out of your return. While StudioTax doesn’t have these features, they are also quite user-friendly. Which one you choose really just depends on your preferences and what features you prefer in software.
SimpleTax Vs StudioTax
While SimpleTax and StudioTax are both great software as well, there are a few key differences. The first is that SimpleTax (Wealthsimple Tax) is free for everyone, while StudioTax is only accessible to some. Another key difference is that you can only do personal income taxes that have employment income.
If you have any corporate taxes to do, StudioTax is the better option. Although there is a cost, $15 isn’t much compared to what an accountant or tax professional would cost.
CRA Certified and Tax Software
When you’re choosing tax software, it’s important to choose software that’s CRA-certified. While this includes all of the software we have mentioned, here's a list.
- CloudTax
- StudioTax
- Wealthsimple Tax
- H&R Block
- GenuTax
- TaxTron
- EachTax
- FutureTax
- AdvTax
- TurboTax
- TaxFreeway
- UFile
- Mytaxexpress
Depending on which tax filing software you choose, they are available on Android, windows, or Apple.
Final Thoughts
When you choose to go through the tax filing process yourself, there are a few things to consider before you choose the software. First, you need to consider what kind of taxes you need to file. Do you have a standard return to file? Do you have investment income? Are you self-employed? Do you have RRSPs? Are you filing by yourself or jointly with a spouse? Do you have medical expenses to claim? There are so many things to consider. Your tax filing software should be able to work with whatever your tax situation is. From there, you can figure out how much you are willing to pay to make sure your taxes are done correctly. This can avoid any unexpected fees in the future.
