Best Canada Tax Software: Top 6 Rankings & Reviews
Reviewed by Kristina Knight, Journalist , BA
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Canada has a complex tax system and navigating it can be a daunting task for individuals and businesses alike. Fortunately, there are various tax software options available to help make the process easier and more efficient. They do this by assisting you in rapidly locating the forms you want, automating some or all of the form-filling procedure, and performing the necessary calculations so you don’t make any costly arithmetic errors. These software options can enable you simultaneously do the taxes for every member of your family and optimize your tax return to hunt for efficiency. Tax preparation software can also assist you in submitting your taxes through the CRA’s Netfile service after you are satisfied with your return. The CRA regulates and accredits tax software in Canada.
Although all of these software have free versions, a couple of them have paid versions as well. Hence, the tax return software providers with paid versions have some restrictions for the free tier, such as income tiers and limited support. However, it is recommended that you always start with the free tier and see if it suits your needs. If you realize that you have limitations using the free version, then you can upgrade to the paid tier.
In this article, we will review some of the top Canadian tax software options available.
Top 6 Best Canada Tax Software 2024
- TurboTax: Best Overall
- Wealthsimple Tax: Most Affordable
- CloudTax: Best Feature Software
- AdvTax: Best no-frills tax software
- UFile: Best for business owners
- GenuTax: Best free software
How to Fill Information in Tax Software?
To fill in tax software in Canada, you will need to gather the necessary documents and information and follow the prompts in the software. Generally, tax return software like Wealthsimple Tax and TurboTax provide detailed instructions. Most of them also include a simple search function to identify any slips or papers you need to include with your tax return. When your return is complete, they will assist you in filing your taxes and indicate any potential issues. Here are some general steps to help you get started:
- Gather your documents: You will need to have all the necessary documents and information on hand to complete your tax return using tax software. This may include your Notice of Assessment, T4 slips, receipts for tax credits and deductions, and any other documents that are relevant to your tax situation.
- Choose a tax software product: Most tax return software products have been approved by the CRA for electronic filing. Choose a product that meets your needs and is compatible with your computer or device.
- Create an account: Most tax software products will require you to create an account to use their service. Follow the prompts to set up your account and provide any necessary personal information.
- Follow the prompts: The tax software will provide step-by-step instructions and prompts to guide you through preparing and filing your tax return. Enter the required information as prompted.
- Review and submit: Before submitting your tax return, review all the information to make sure it is accurate and complete. Make any necessary corrections, and then submit your tax return electronically through the tax software.
It is important to note that tax laws and regulations can change from year to year, so it is a good idea to check the latest information and guidelines on the CRA’s website to ensure that your tax return is accurate and up-to-date.
What is CRA-approved tax software?
The Canada Revenue Agency (CRA) has a list of approved tax preparation software products that individuals and businesses can use to file their tax returns electronically. For the 2022 tax year, the CRA has certified over 30 different tax software alternatives. The best one for you will depend on the features you require, how comfortable you are with technology, and how much you are ready to spend. It’s always a good idea to check the CRA website for the most up-to-date list of approved tax preparation software products. Some popular CRA-approved tax preparation software products include:
- TurboTax
- H&R Block
- UFile
- TaxCycle
- TaxTron
- StudioTax
- SimpleTax
- TaxWise
- ProFile
In addition to these software products, individuals and businesses can also file their taxes online through CRA’s online tax-filing service, My Account for Individuals or Represent a Client. These online services are free and allow individuals and businesses to file their tax returns, make payments, and track the status of their tax returns and payments online.
Read more: Best Free Tax Software In Canada 2024
Top 6 Best Canada Tax Softwares April 2024
TurboTax
TurboTax is one of the most popular tax software options in Canada. It offers a variety of packages for individuals, small businesses, and self-employed individuals. It is user-friendly and guides users through the tax preparation process step-by-step, making it an excellent choice for those who are new to tax preparation. TurboTax also has a strong customer support team available to answer any questions.
- User-friendly interface
- Allows for up to 20 returns annually
- Maximum refund guarantee
- Online community
- No customer support with free version
- Relatively costly
- Not ideal for users with complex taxes
TurboTax is a good choice for those who are comfortable preparing their taxes and have relatively simple tax situations. The TurboTax free version covers simple tax situations like unemployment income, child care expenses, pension income, RRSP contributions, and dependent credits, among others. Your tax data can be automatically imported from the CRA by TurboTax Free, and they promise you’ll get the biggest return possible.
One drawback of TurboTax Free is that it does not bring forward your tax information from prior years (NOA). Beyond that, there are no restrictions. However, for more complex tax situations like investments and rental property, you might have to upgrade to one of TurboTax’s premium choices if you want assistance or direction. The paid tiers begin at $19.99 per return.
Wealthsimple Tax
SimpleTax was renamed Wealthsimple Tax after it was purchased by the rapidly expanding investment giant, Wealthsimple. They provide Wealthsimple Tax, a free income tax software for Canadians. The business encourages making a gift to support Wealthsimple’s service even though it is free. Wealthsimple Tax is the only tax preparation program in Canada that can report cryptocurrency earnings and losses.
- User-friendly and auto-fill features
- 100% accuracy guarantee
- Encryption and security for personal information
- Compatible with multiple devices
- No add-ons like expert review
- Not ideal for users with complex tax
- Limited customer support
Wealthsimple Tax, like other free online tax services, allows you to automatically fill out your return using data from the CRA. This software guides you through the process step-by-step, optimizes your return, and allows you to file your taxes online. Wealthsimple Tax offers help without pushing you to subscribe to a free plan, unlike other free online tax preparation services. As an alternative, they employ a “pay what you want” business strategy and provide you the choice to pay for the service if you so want.
CloudTax
CloudTax is a web- and mobile-friendly income tax filing platform with a user-friendly interface. This NETFILE-certified tax software makes it easy for non-business taxpayers to easily file their taxes for free. Since the program is cloud-based, you can complete your taxes from any location as long as you have access to the Internet. Additionally, unlike other free tax preparation tools, CloudTax allows you to connect with a tax professional online for free if you run into problems and need help.
- Ease of access
- Auto-fill feature
- Unlimited chat support
- Step-by-step guidance
- Free version does not cover rental income or self-employed individuals
- Some provinces in Canada are not supported
Most features and scenarios are included in CloudTax’s free tax software. The free plan covers regular employees, so they don’t need to worry about filing for the current tax year. It’s simple to file for credits, deductions, and income slips. However, they offer a few premium features that you can unlock with CloudTax Pro for a simple one-time payment of $29.99. Individuals who have more peculiar or complex circumstances can use the Pro software for up to 20 returns if they want audit protection, own a business or rental property, or both. Additionally, you can pay more to upgrade to professional filing assistance for items like corporate returns.
AdvTax
AdvTax is a Canadian tax preparation software that helps individuals and small businesses prepare and file their taxes online. It offers a range of features and is designed to be user-friendly, with step-by-step guidance throughout the process. One of the main advantages of AdvTax is its accuracy. The software uses algorithms and data validation checks to help ensure that your tax return is complete and accurate. Another advantage of AdvTax is its convenience. In terms of features, AdvTax offers a range of options to help users prepare and file their taxes. It allows users to import data from financial institutions, file state taxes, and e-file (electronically file) their tax returns.
- Wide range of features
- Convenience and easy accessibility
- Use of algorithms and data validation for accuracy check
- Limited customization
- Limited support
AdvTax is a good choice for those who are comfortable preparing their taxes and have relatively simple tax situations. Its accuracy, convenience, and range of features make it a solid choice for those looking for an easy and hassle-free way to prepare and file their taxes. However, a potential drawback of AdvTax is that it may not be suitable for those with more complex tax situations. It does not offer as many customization options or features as some other tax software products, so those with more specialized needs may want to consider other options.
UFile
UFile is a Canadian tax software that is recommended for business owners and investors. This software offers support for users with all kinds of tax returns, including those with investment income, rental properties, or self-employment income. It is user-friendly and offers a step-by-step guide to help users navigate the tax preparation process. UFile also has a variety of resources available, including tax tips and a helpful FAQ section. This software uses algorithms and data validation checks to help ensure that your tax return is accurate and complete.
- Free for students and Canadians filing simple tax returns
- Autofill feature
- Use of data validation to ensure accuracy
- Refiling available for past returns
- No audit protection
- No reimbursement for accuracy guarantee
- Does not support bankruptcy returns
The Ufile free tier offers basic features and support for the tax filing process. However, if your taxes are a little more complex, you might decide to utilize a premium service. All tax scenarios are covered by UFile Online’s single package, which also includes phone and email service. UFile Online charges $19.95 for everyone’s first return so you know you’re receiving what you pay for rather than trying to upsell you on the assumption that your taxes need something unique that others don’t. One potential drawback of UFile is that it is primarily designed for Canadians, so it may not be suitable for those living in other countries or for those with international tax issues.
GenuTax
Genutax is a Canadian free tax return software provider that offers a range of packages for different tax situations, including options for self-employed individuals, families, and small business owners. One of the key selling points of Genutax’s software is its user-friendly interface. The software is designed to be easy to use, with a step-by-step guide to help users prepare and file their taxes accurately. It also allows users to automatically import their T4 slips, which can save time and reduce the risk of errors. Additionally, Genutax’s software offers audit protection to help users navigate the audit process and protect their interests if they are audited by the CRA.
- 100% free for all users
- Auto-fill features
- Refile options available
- Prepare up to 20 tax returns annually
- Customer support available only through email
- Dated software with limited features
- Lack of optimization tools
Genutax’s software appears to be a solid choice for Canadians looking for a user-friendly and feature-rich tax preparation tool. Its user-friendly interface, automatic import of T4 slips, support for multiple tax forms, audit protection, and expert help make it a convenient and reliable option for many users. On the downside, Genutax’s software may not be the most affordable option on the market. Its packages may be more expensive than some other tax return software options, and it is worth comparing the costs and features of different software to determine the best value for your needs.
Final Thoughts
There are a variety of Canadian online tax software options available to help individuals and businesses navigate the complex tax system. Whether you are a beginner or an experienced tax preparer, there is a software option available that suits your need. Any of the free solutions will work and let you save money if you feel confident doing your own taxes. However, if you want a premium solution that can handle whatever you throw at it, then you should go for the paid tier. Regardless of the program you use, the goal is to fill in the appropriate CRA form and submit them with Netfile.
Frequently Asked Questions (FAQs)
The Canada Revenue Agency (CRA) has approved a list of tax preparation software products that can be used to file personal and business tax returns electronically. Some of them include TurboTax, Ufile, GenuTax, Wealthsimple tax, CloudTax, and AdvTax, among others. You can check out the website of the Government of Canada for all CRA-approved tax return software.
Yes, you can, but you must use CRA-approved tax filing software. Choose a program that is certified for the tax years you need to file by looking through the list of CRA-approved tax filing software.
Yes, there are several free options for tax filing software. No matter your income or how complex your tax return is, some, like Wealthsimple Tax, are free. Others, like UFileFree or TurboTax, offer limited features under the free tier. Hence, if you need more functionalities, you have to go with the paid tier.
Most Canadian tax return software use bank-level security and encryption to transmit tax returns. For instance, Wealthsimple Tax employs cutting-edge encryption and two-factor authentication to protect data.
When you get income from CPP, QPP, your RRSP, and other retirement investments, you must still file your taxes. The recommended tax return software for retirees is H&R Block for software which functions well and is simple. You are free to contact them and ask as many questions as you like because they provide a plan with unlimited support. Additionally, you may use their professional review service to double-check your work. It is also easy to convert to having a professional file your taxes.
Small business owners have a high chance of mixing business tax with income tax. Of all the available premium solutions, UFile Online offers the best value to easily meet your needs as a small company owner.
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+ 5 sources
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- TurboTax. TurboTax® Official Site: File Taxes Online, Tax Filing Made Easy. Intuit.com. Published 2018. Accessed January 3, 2023. https://turbotax.intuit.com/
- Wealthsimple Tax | Free Online Tax Filing Software 2022 | CRA Netfile Certified. www.wealthsimple.com. Accessed January 3, 2023. https://www.wealthsimple.com/en-ca/tax
- File Taxes Online in Canada | Income Tax Software | CloudTax. CloudTax | Simple Tax Application. Accessed January 3, 2023. https://cloudtax.ca/