What is the Best Tax Software in Canada?

It used to be that filing your own taxes was an overwhelming task that took days to complete, and software was not much help. Today there are several tax software options to choose from that are easier to use and can save you time and money. If you have a relatively straightforward tax return, then tax software can be a convenient, cost-effective way of filing it. However, if your financial situation is more complicated, a tax accountant can maximize your return and ensure you receive all tax credits and deductions that you are due.

Advantages of Using Tax Software

Tax software has become much more reliable and user-friendly in recent years. Here are a few advantages of using tax software to file your tax return:

Tax software is a cost-effective way to complete your tax return. Using tax return software is cheaper than hiring a tax accountant. An accountant will charge you for every service according to the time spent on the job. Even if you upgrade to a paid version of your tax software, it is typically cheaper than doing your taxes in person.

You will be more informed about how everything on your return is processed. With the rise of tax software, clients can know how everything on their return is processed. The step-by-step format allows them to have input and be more informed about their finances.

Your tax return can be completed in a matter of hours. Once you have all your tax paperwork, filing your return using tax software is relatively easy and can be done in a matter of a few hours. This is especially true if you have a straightforward tax return to file with few complications.

All your financial information will be kept confidential. Some people have concerns about sharing their financial details and private information with a tax accountant. Tax software allows you to retain your confidentiality.

Features to Look for in Tax Software

When choosing tax return software, you must ensure it has the right features to complete your return. These are the most crucial:

Ease of use – Unless you have some education in accounting, you will want tax software that is easy to use and navigate, allowing you to choose the correct forms without needing to be an expert.

OS compatibility – Your tax software needs to be compatible with your computer’s operating system. Windows is compatible with just about every program, while Macs have slightly less selection. Some tax software has been made available for mobile devices in recent years, but you may find this cumbersome on a small screen.

Availability of a free version – If your tax return is relatively straightforward, you can save money by choosing from free tax return software. However, you want to ensure that it has all the features you need. You may find it worth the extra cost for the convenience of filing a more complicated tax return.

Best Canada Tax Return Software

Here are the top tax return programs in Canada for 2023:

Wealthsimple Tax (Formerly SimpleTax) – Wealthsimple Tax is one of the newer income tax filing programs, but it is a well-rounded program that combines the best features from other tax return software. It can handle a variety of complicated tax situations, including self-employment, investment income, and crypto trading. It offers a web-based version, can be used on a local Windows or Mac desktop and is available on mobile via the Apple Store and Google Play. It features a unique pay-what-you-want structure; while it is technically free, you can opt to donate to support the organization.

TurboTax – TurboTax offers free and paid versions and works with Windows, Mac, Android, and iOS. Unlike competing tax software, it has no income limit, making it a viable option for higher-income individuals. Although you can import your tax information with CRA’s Auto-fill My Return, you will need to purchase the paid version if you want to transfer your tax information from last year. At $19.99, it will also search for over 400 additional tax credits and deductions to check your applicability, so it has great potential to maximize your return.

H&R Block – H&R Block does in-person tax returns, but you can also file your taxes online with NETFILE using Windows, Mac, Android, or iOS. If your tax situation is more complicated, you can purchase add-ons, including audit protection and pro review. The interface is simple and easy to use, allowing you to move through the software at a manageable pace while monitoring where you are in terms of a tax refund or balance owed.

Advantages of Hiring a Tax Accountant

While tax software can take care of the job of filing your tax return, there are advantages to hiring a tax accountant to complete it instead:

A tax accountant saves you time and energy. Hiring a tax accountant will save you a lot of time compared to doing your taxes yourself. A tax professional can complete your return in a fraction of the time because they have the education and experience to fill it out accurately, especially if you have a complicated return.

Your tax return will be maximized. A tax accountant is acquainted with updated laws and regulations that tax filing software may not have yet incorporated. They understand how to work the system to get the best return without errors.

Human interaction provides reliability and trustworthiness. No technology can replace the comfort of human interaction. It gives clients a strong sense of dependability that tax software cannot offer.

Your Best Tax Return Option

If you don’t want to spend money on a tax accountant, tax software is a viable alternative, especially for people with relatively simple returns to file. However, in most cases, a tax accountant can maximize your return to the extent that it offsets the cost of hiring them.