Tax Software Canada: With all the tax tools available to Canadians, now it has never been easier to do your taxes online. You can also fill out your tax form online for free or very cheaply.
Basically, you don’t need an accountant unless you have a difficult tax situation or a big business. If you don’t need one, furthermore, you won’t miss out on any tax deductions or credits.
In 2022, 91.8% of Canadians filed their income tax and benefit returns electronically. Among these individuals, 59% used EFILE, 32.6% used NETFILE, and 0.2% used the File My Return Service.
The last day to file a tax report for the tax year 2022 is May 1, 2023. People who work for themselves or run their own businesses have until June 15, 2023, to file their income tax and benefit reports.
Canada’s best free tax software Canada
- The best tax program in Canada is TurboTax Free.
- Wealthsimple Tax is the best tax program that is free to use.
- H&R Block, Inc.
How to Pay Your Canadian Taxes Online
In Canada, there are two main ways to file your taxes online: with NETFILE or with EFILE.
The Canada Revenue Agency (CRA) offers NETFILE, an internet service that lets people send in their tax returns without having to fill out paper forms.
To use NETFILE to file your tax return online, you must use CRA-approved tax software Canada like TurboTax or one of several others.
Through NETFILE, tax returns are sent straight to the CRA in a safe way.
EFILE is a tool that tax preparers use to send your income tax return information to the CRA electronically.
If you don’t feel comfortable using NETFILE or need professional help with a complicated tax return, an accountant or tax preparation company can use EFILE to file your tax return for a fee.
Starting in 2018, the Canada Revenue Agency (CRA) has a tool called “File My Return” that low-income Canadians can use to file their income tax and benefit return for free.
People who are eligible for this service get a welcome letter in February that tells them what to do next. Call 1-800-959-8281 to talk to CRA about File My Return questions.
In 2023, tax software Canada will be free.
Here are some tax programs that the CRA has approved for use with NETFILE. All of them have free ways to file your taxes, and some of them also have paid versions.
1. Canada TurboTax is free.
TurboTax is one of Canada’s most used online tax return programs. There are free, standard, premium, and self-employed versions of TurboTax software.
The free version is good for simple tax forms and covers the basics. TurboTax can be used on any computer, even a smartphone.
With the free TurboTax software, you get the following:
- Certified by NETFILE.
- Up to 20 returns per year are free.
- Auto-fill My Return, which imports your tax information straight from the CRA.
- Maximum guarantee of a refund.
- There is a 100% accuracy promise, or TurboTax will pay back any penalties that were caused by a mistake.
- When you use NETFILE to send in your tax return, you can get your notice of assessment right away.
- If you need to make changes to your return, you can use REFILE.
- Your personal information will be safe with TLS security.
- It can be bought in Quebec.
- You can pay for access to a live tax expert.
- Instructions step by step.
The free version doesn’t come with phone help from a tax expert, but you can use their free online community to find answers to your questions.
Also, you should know that TurboTax Free doesn’t support some credits, income, and deductions, like self-employment income and costs, donations, investment income, rental income, etc.
You can get a 15% savings if you need to use a paid version of TurboTax, like the Standard service for $20.99.
- Step-by-step instructions make it easy to use.
- Paid versions come with help from experts and can even do your taxes for you.
- Maximum refund is guaranteed
- The free version doesn’t work for all tax cases and has very few features.
- The price of premium models is higher.
2. Wealthsimple Tax (also called SimpleTax)
WealthsimpleTax, which used to be called SimpleTax, is free software that Canadians can use to file their income tax returns. It also just started letting people file their taxes online for free, which is a first for Canada.
SimpleTax was started in 2012, and the well-known robo-advisor Wealthsimple just bought it. The CRA and Revenu Quebec have given it permission to use NETFILE.
Wealthsimple Tax lets you file any tax report that is not exempted by NETFILE, which is not the case with most free tax software.
This includes things like reporting income from self-employment, rent, donations, investments, hospital costs, and more.
Here are some of the things you can look forward to:
- Online tax program that is easy to use.
- Step-by-step instructions and a promise of 100% correctness. If the software makes a mistake and you have to pay fees or interest because of it, Wealthsimple will pay for it.
- Use their refund optimizer to get the most money back and get it by direct pay in as little as eight days.
- Use encryption to keep your personal information safe.
- Auto-fill My Return is compatible and has been approved by the CRA.
- Send in more than one tax return per account.
- You can call or send customer service seven days a week.
- All provinces and areas, including Quebec, can get it.
- There are a number of tax tools that can be used for TFSAs, RRSPs, taxes, and retirement.
- It can be used on a number of gadgets.
- Canada’s best free income tax software.
If you sold crypto in 2022, Wealthsimple Tax can help you figure out how much you made or lost on your investments and include that information in your tax return.
This software works with Wealthsimple Crypto, Bitbuy, NDAX, Shakepay, and more than 300 other big cryptocurrency exchanges.
After you send in your tax return, you’ll be asked if you’d like to give a small amount. Still, you’re not required to do so.
You can also switch to a Premium account if you want help with an audit by the CRA. This service is up to the person.
- Step-by-step instructions help you file all kinds of tax forms.
- Maximum guarantee of refund
- NETFILE is okay with the CRA
- Help with audits is offered
- needs to know a lot about taxes
- Not enough help for customers
- No review by a tax pro
3. Free H&R Block
Canadians have been able to get tax help from H&R Block for more than 55 years. It has more than 1,000 offices where you can get tax help in person or drop off your paperwork. It also has powerful online tax tools for people who want to do their own taxes.
With H&R Block, you can file your 2022 tax return online for free, with help for $24.99 per return, or with protection for $44.99 per return.
The free service gives you the following:
- Certified by NETFILE.
- Automatically get the most money back.
- Platform that’s easy to use.
- Access to a help service online.
- Some of your tax slips are downloaded straight from the CRA and Revenu Quebec by Auto-fill My Return.
If you want help and support to finish your tax return, the Assistance product gives you endless tech support and lets you transfer your tax information from last year.
On the other hand, the Protection service is great if you want audit protection, priority help, and the ability to store your return online for up to seven years.
- There are ways to file taxes in person, online, and over the phone.
- Certified by NETFILE
- For an extra fee, you can get safety from audits and help from experts.
- The IRS does not accept Forms T1273, T1163, and T2203.
- You won’t get much help unless you improve.
CloudTax can help you file an easy tax return if you don’t have a business.
Nimalan Balachandran started CloudTax, and the Canada Revenue Agency has approved the tax program.
CloudTax Free is their free service. CloudTax Plus and CloudTax Pro are their paid services.
You get the following for free:
- Fill My Return for Me.
- The tool can be used on the web and on mobile devices (iOS and Android).
- Encryption keeps your info safe.
- Save your tax report online.
- Audit security is available for $2.99 per month.
- You can get help from an expert for $29.99 per return.
Residents of Quebec, the Yukon, the Northwest Territories, and Nunavut can’t use CloudTax right now. CloudTax Pro costs $29.99 per return to get started.
- For a small fee per month, you can add audit safety.
- Certified by NETFILE
- Support for unlimited chats
- In Nunavut, Quebec, Yukon, and the Northwest Territories, you can’t get the free version.
- The free version doesn’t cover people who are self-employed or have rental income.
5. Free uFile
You can use a Windows or Mac computer, a tablet, or a smartphone to get to uFile online and use it to file your taxes. They also have a version for Windows that you have to download and install on your computer.
No matter how much money a student has, they can use uFile for free. Because it works with the Canadian Federation of Students, this service is free.
You can also get the tax software for free if you are:
- Filing a simple tax return, which means that you are only showing one income from work or a pension (OAS or CPP).
- You just moved to Canada and this is your first time making a federal tax return.
- A low-income worker is one who makes less than $20,000 as a family.
The first price for the paid uFile tax service is $19.95. uFile offers the same things as the other tax tools on this list, which are:
- Additionally, accuracy and tax returns that are guaranteed.
- Safety and
It is approved by NETFILE and can be bought in Quebec.
- The Basic version is for people who are qualified, especially newcomers to Canada, students, and families with low incomes.
- Furthermore, there is a triple assurance of truth.
- In addition, autofill is available and approved by NETFILE.
- Moreover, most people won’t be able to get the free one.
- However, no help is available with chat.
GenuTax is tax software Canada that is NETFILE-certified and can only be used on Windows computers through a download file.
It is easy to use and doesn’t cost anything. They ask for a gift to help support the business.
You can make tax returns for the years 2020 and back to 2010. It works well for both easy and complicated tax situations, like small business taxes, income from rental properties, etc.
You can get some customer help by email, and you can file up to 20 tax returns per year.
- You can file up to 20 tax forms, going as far back as 2010.
- It is approved by NETFILE.
- Free, easy, and simple to use
- Furthermore, forms T2203 and T1135 cannot be used with GenuTax.
- Windows is the only OS that has it.
- There is no help for the Quebec provincial income tax return.
Aclasssoft Inc. is the company that makes AdvTax. Additionally, you can use your phone, tablet, or computer to get the tax return software. The app works with English, French, and Chinese, among other languages.
They say that it only takes a person 3–5 minutes and a family about 10 minutes to fill out a tax form.
AdvTax can handle all forms needed by CRA EFILE and NETFILE, including those for Quebec.
Also, it is:
- Furthermore, it is certified by NETFILE.
Additionally, it’s simple to use. According to their website, filling out your tax form should take you about 5 minutes.
- Certified by NETFILE and EFILE
- Low-income people can file their taxes online for free.
- Moreover, the interface is very old, and the amount of words can be overwhelming.
- Additionally, there is only a 50% chance that free online filing services will work out for you.
You can use StudioTax, a tax software (Canada), on both Windows and Mac computers. It’s no longer free; a ticket now costs $15.
After you put the app on your computer, then you can use NETFILE to file your taxes. It works with both the Auto-fill My Return and Express Notice of Assessment features.
Moreover, StudioTax doesn’t work on phones or computers.
Among the best things about StudioTax are:
- It doesn’t need to connect to the internet to do most of what it does. Additionally, you don’t need to give it your name, email address, online account information, or credit card number.
- Furthermore, NETFILE has approved it.
- Furthermore, it can handle both easy and complicated returns.
- Moreover, as many as 20 times a year.
- There are no limits on cash.
- You can find it in Quebec.
File your Canadian tax return online
The vast majority of Canadians can usually file their tax forms online. However, some things that can stop you from submitting a NETFILE are:
- Are sending in a tax return for a year before 2017?
- You don’t live in Canada and/or your address isn’t in Canada.
- If you went bankrupt in the two years before you filed your taxes,
- Are you making a tax return for a person who has died, or is it for another reason?
- Need to make a name change
- If you’re making a changed tax return, please specify the modifications required.
- Unless you just moved to Canada, your social insurance number starts with a zero.
What to look for in tax software that is free
When choosing tools to file your taxes online, keep these things in mind:
- Simple to use. Some free tax software Canada will be simpler and easier to use than others. For example, TurboTax and Wealthsimple tax walk you through the tax filing process step by step, while GenuTax and AdvTax have outdated designs and are not easy to use.
- Cost. Watch out for tax software that says “free,” because it might not be free. Depending on how your taxes are set up, furthermore, you may need to upgrade to a premium version of the program to do your taxes right.
- The way you pay taxes. If your tax situation is difficult, like if you have more than one source of income, are self-employed, or make money from rental properties, you’ll need to make sure the tax software can handle it. Make sure that the forms you need to fill out are also enabled.
Advantages of using a tax software to do your taxes online
If you file your taxes online instead of filling out paper forms and sending them to CRA, you can:
- A. Faster Refunds: When you send in your information electronically, you get your money back faster—often in as few as 8 working days.
- B. User-friendly: Most online tax software Canada is easy to use and walks you through the process, so you don’t have to be an expert on taxes to file your own report. They also keep your old tax returns on file for a few years, so it’s easy to find them if you need them.
- C. Cheaper: Online tax tools can be much cheaper than hiring an accountant to help you. Moreover, you can even do your taxes for free online.
- D. Accuracy is better because NETFILE-certified tax software can use the Auto-fill My Return service, which fills in part of your tax return for you immediately. When you add this to the software’s “accuracy guarantee” and automatic calculations, your chances of sending in an accurate return go up.
If you plan to file your taxes online, ensure that the tax software you use is:
- Approved by the CRA.
- Additionally, it has the right protection to keep your personal information safe.
- It’s easy to use and works with all of your gadgets.
- Price-friendly or free
We suggest that you use TurboTax, which is the best online tax software, for the 2023 tax season (the 2022 income tax year). Alternatively, you can also choose H&R Block or WealthSimple Tax.
Tax Software vs. Accountant
Should you use online tax tools or hire an accountant to file your taxes?
All of it depends on your financial situation, how comfortable you are with tax software, as well as other factors. Getting an accountant to do your taxes is easier, but using tax tools is cheaper. Both have their pros and cons.
Most people don’t need an accountant to do their taxes unless they have a complicated tax situation, make a lot of money, or had something big happen in their lives in the past year.
Using online tax software is much cheaper than hiring an accountant, and if your taxes are easy, it might even be free. Once you have all the papers you need, you can use software to file your taxes in less than an hour. On the other hand, it will take a longer time for a CPA.
If you hire an accountant, you can get to know them as a person, and over time, they will learn about your tax history and position. However, most tax software won’t be as good as a live person at making suggestions.
FAQs about Tax Preparation Software
How much does TurboTax Canada free cost?
Yes, furthermore, Canadians with simple tax forms can use TurboTax Free for free. However, if you have a more complicated financial situation, you will have to pay for an upgrade.
How can Canadians pay their taxes the easiest way?
Using tax return software is, moreover, the best way to do your taxes in Canada. Additionally, software like TurboTax and Wealthsimple Tax will walk you through each step of the process.
How much does it cost H&R Block to do Canadian taxes?
The program from H&R Block can be used for free or for a fee. Furthermore, you can pay an extra $24.99 per return for Help, or $44.99 per return for Protection.
Who can use UFile for free?
With UFile, you can file your taxes for free if you are a student, have an easy tax return, are filing your taxes for the first time, or have a low family income. Additionally, the software offers various paid options for more complex situations.