Top Tax Return Software For Canadians: File for Free

If you’ve ever had the pleasure of filling out your tax return forms by hand you know that tax return software is a miracle worker!

And for most of us with straightforward tax returns, it does the job quickly and easily.

Also, it’s much cheaper than hiring an accountant.

If your return is complicated, make sure you are familiar with all the tax credits and deductions you are entitled to before choosing a program. Business owners might want to upgrade which tax software they choose or hire a professional tax consultant.

Now, let’s look at the top tax return software for Canadians.

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Read: Income Tax Changes Canadians Need To Know In 2021

Read: Income Tax 2020 – Tax Changes Canadian Families Need To Know

Tax Software: what to look for

Free versus Paid

If your tax situation is simple, you can probably make due with a free version of tax return software. Choose which of the best tax software programs in Canada is best for you:

	Free Versions of Tax Software	Paid Versions of Tax Software
Pros	Good for simple returns Good for individuals making a salary from an employer	Best for self-employed Good for individuals with rental income
Cons	May be restrictions based upon your income level Might not be any phone support if you have issues	Costs money to file your return

Works with NETFILE

NETFILE allows you to send your income tax return directly to the Canada Revenue Agency (CRA). You will get notification from the CRA that they have received your return for processing. Most tax software programs are compatible with NETFILE, but you should ensure that it is CRA certified.

Is it Intuitive?

Will the tax return software you choose anticipate what tax credits and deductions you can apply for? If the software program comes with a wizard, it will guide you through what forms you will need for your family.

Also, you may have the option of transferring your tax return information from the previous tax year. For example if you have any leftover medical expenses or tuition amounts that you didn’t use.

T4 slips and Registered Retirement Savings Plan (RRSP) contribution amounts can be transferred from the CRA’s system to your tax return. Make sure to check these amounts with the paper slips you receive and with your notice of assessment from the previous year. I’ve had my Home Buyers Plan amounts and RRSP contribution room amounts not match in the past.

Read: Investment Ideas For Low And Middle Income Earners

Benefits of filing Online

1. Faster refunds
2. Faster to complete and you are prompted with the necessary forms to maximize your refund or reduce tax owing
3. Accurate – you can transfer your amounts from the previous tax year. All the mathematical calculations are done for you
4. Cheaper than hiring an accountant or tax consultant.

Read: How To Make A Family Budget

Best Tax Return software for canadians

TurboTax

You have probably heard of this one. TurboTax is pretty well known. This is the software I use to file my tax returns.

summary of the pros and cons of TurboTax:

• offers a free and paid version
• NETFILE certified
• no income limit if you use the free version
• you can file up to 20 tax returns with free version
• online software, compatible with PC, Mac, Android, and iOS
• you can “auto-fill” your return with this year’s information
• you must purchase the paid version to import previous tax return amounts
• $19.99 for standard program
• standard version searches hundreds of possible credits and deductions for you and comes with customer support
• guaranteed accurate or they will pay any penalties you incur

Read more about TurboTax here.

SimpleTax

SimpleTax is fairly new but offers similar benefits its older competitors. The Canadian robo advisor, Wealthsimple, acquired SimpleTax in 2019.

SimpleTax summary:

• online software, compatible with Windows, Mac, or Mobile via iOS
• CRA certified
• guaranteed accurate
• free, but asks for a donation
• can handle self-employment and investment income situations
• offered in French
• you can file a max of 20 tax returns for free

Read more about SimpleTax here.

UFileFREE

UFileFREE Summary:

• online version, compatible with Mac or Windows
• No mobile version
• Guaranteed accurate
• NETFILE certified
• Free if at least one of the following applies: you are filing your tax return for the first time, you are a post-secondary student, your total family income is less than $20,000, your only income is from T4 slips, you receive the Guaranteed Income Supplement.
• If not, there is a paid version at $19.95

Read more about UFileFREE here.

StudioTax

StudioTax Summary:

• can work for individuals who are self-employed or who have rental properties
• there is no online or mobile version, only locally on Windows or Mac desktop
• you can import your information from previous years if you used StudioTax before
• leads you through the process step-by-step by asking relevant questions
• NETFILE certified
• you can auto-fill your return from the CRA
• no income limit
• you can file up to 20 returns for free

Read more about StudioTax here.

AdvTax

AdvTax summary:

• compatible with smartphone, tablet or computer
• NETFILE certified
• Free
• available in multiple languages
• can be used by self-employed persons
• very quick
• works with Window, Mac, and iOS

Read more about AdvTax here.

Tax Return Software Comparison Chart

	TurboTax	SimpleTax	UFileFREE	StudioTax	AdvTax
Easy to Use	User-friendly	User-friendly	User-friendly	Non-friendly interface	Non-friendly interface
NETFILE Approved	Yes	Yes	Yes	Yes	Yes
Online Version	Yes	Yes	Yes	No	Yes
Mobile Use	Android & iOS	iOS	N/A	N/A	Android
Desktop Use	Windows & Mac	Windows & Mac	Windows & Mac	Windows & Mac	Windows & Mac
Free Version	Yes	Yes	Yes	Yes	Yes
Price For Paid Version	Standard Version $19.99	Pay What You Want	Starts at $17.95	Donations	N/A

Read: How To Budget For A New Baby – First Year Checklist

File online for FREE with H&R Block!

Filing your tax return

Like I mentioned, I have been using TurboTax for years with only a few issues. Those being that occasionally the auto-fill feature inserts incorrect amounts related to my RRSP and Home Buyers Payment. However, this could be an error on the CRA’s end. As long as I verify the amounts with the paper slips, I am fine.

Whichever tax return software you choose, it is sure to make the process easier and speedier than filling out the paper forms.

Happy tax filing!

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