Best Free Tax Software In Canada: Top 7 Picks & Reviews 2024
Reviewed by Kristina Knight, Journalist , BA
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Filing taxes can be demanding and draining, and the only solution is to hire a personal accountant to help you or rely on your skills to do them correctly. That’s where tax software comes into play. They allow you to easily file taxes while saving valuable time and money you would have otherwise spent on an accountant.
Free tax software is perfect for individuals. Although, it might be best to get a professional to file them for you if you run a big business or have a unique tax situation. This post will review the top seven software you can use to do your own taxes.
What Is Free Tax Software In Canada?
Free tax software is software that helps you file your taxes online. It makes the whole process easy, smooth, and cheap compared to the standard method. NETFILE is a service developed to help Canadians file tax returns. It allows taxes to be filed online directly to the Canada Revenue Agency (CRA).
To file your taxes, you must use free Canadian tax software certified by CRA and NETFILE. NETFILE has a counterpart called EFILE, which tax preparers use to file taxes on behalf of others. You should note that you can’t alter your address, name, age, or other personal information on NETFILE. If you need to make changes, you will need to contact the CRA.
Benefits of NETFILE Tax Software
Big companies and high-net-worth individuals often higher a tax expert to look at their books and take care of their taxes. However, regular and self-employed individuals often opt for free tax filing software because it is cheaper and faster.
Let us look at some of the benefits of using NETFILE software.
- You lower the chance of errors when you file taxes online; your tax returns are more accurate if you use NETFILE tax software.
- Less paperwork
- Immediate confirmation that CRA has received your tax returns.
- Refunds are processed faster when filling with NETFILE, and you can send them directly to your account in about two weeks.
Top 7 Best Free Tax Software In Canada 2024
- Wealthsimple Tax: Best Overall
- Turbo Tax-Free: Most Affordable
- H&R Block Free: Best Interface
- GenuTax: Best Free
- UFile: Best for Self Employed Individuals
- CloudTax: Best Feature Software
- StudioTax: Most Secure
What Makes A Good Tax Software?
Taxes can be tricky, so people hire professionals to help fill them. However, this can be expensive. Developers built personal tax preparation software to quickly help individuals file taxes such as state taxes and claim refunds.
Let’s look at the features of good tax software below:
- Ease of use: This is the most important thing to consider. Before selecting a provider, ensure the user interface is easy-to-use, and there is enough information on how to use it.
- Customer Care: Every good tax software should have an online help center that will respond to customers’ requests and provide aid when needed.
- Features: Most free software offer limited functionality unless you are subscribed to unlock paid features. However, it should have basic features like downloading your tax information from the CRA and helping you claim capital gains. Some software offers Express Notice of Assessment.
- Fees: Most software providers let you file simple tax returns for free but will require you subscribe to the paid version to get all the features. Ensure that your software doesn’t have hidden fees, which may increase your bills.
- A great tax software should have audit protection. However, it may be a paid feature in most situations.
Read more: Best Tax Software In 2024
Top 7 Best Free Tax Software In Canada April 2024
Wealthsimple Tax
Wealthsimple is the best free tax filing software, which has an excellent suite of features to make your tax filing less hassle. Wealthsimple is a complete tax solution that handles several situations that some paid software might find challenging.
- It is a full-featured tax software
- It supports filling crypto gains and losses.
- The interface is smooth and intuitive.
- It has no add-ons
- You need working knowledge of doing taxes.
Wealthsimple Tax, formerly known as SimpleTax, is a NETFILE-certified tax software. It gives Canadians a way to efficiently file taxes without hiring tax practitioners, which may cost them a lot of money.
Although it is technically free software, it has a donation system where users can appreciate the developers’ efforts. Wealthsimple features one of the most intuitive interfaces for tax-filling software, which you won’t expect from something you are not paying for. Let’s highlight some features:
- It meets the CRA online filing standards and is NETFILE compliant.
- You get step-by-step guidance on how to file your taxes.
- Maximum refund guarantee: You can quickly locate all deductions to optimize your return.
- Auto-fill-my-return: Import all data required from CRA to quickly file your returns.
- It has a smart search function, which helps you quickly locate all deductions, forms, and credits that need filing.
- Crypto assets declaration: You can link your exchange accounts, and Wealthsimple will automatically calculate your gains and losses on your returns.
TurboTax Free
If you are looking for software to file a simple tax return, TurboTax free is the solution. It is quick and accurate for filing simple tax returns. The paid version is suitable if you have more complex tax situations.
- It has a smooth user interface
- You get excellent customer service
- Max refund guaranteed
- It can only be used for basic filing
TurboTax Free is the free version of the Turbo Tax software that lets you file complex taxes online. The TurboTax Free can only be used for returns if it includes: child or dependent tax credits, rental income, IRS standard deductions, and W-2 income. Please refer to their website for comprehensive information.
These are the features of TurboTax Free:
- With Turbo Tax, you are guaranteed to get the maximum refund for every dollar.
- CompleteCheck, which ensures accuracy when filing.
- Easily identify tax saving credits such as child tax and Earned Income Tax Credit (EIC).
- Automatically sync your info across multiple devices, so you can work from anywhere without missing a beat.
H&R Block Free
The H&R Block’s interface is simple and easy to use. It makes it easy to switch from different platforms, which means you never lose a beat while filing taxes.
- You can easily switch from a different provider
- It features a simple interface
- It is expensive to get a comprehensive tax filing service
H&R Block Free Online is a free tax filing software that makes it easy to complete your taxes while offering superior customer service. It helps you claim free federal, student, and state returns. Quickly import W-2 from designated payroll providers. You can easily switch from a different provider by importing last year’s tax details into H&R Block. It also helps you get free EIC and claim Child Tax Credits on your qualified kids. The H&R also features audit support and guarantees that you get max refunds.
GenuTax
GenuTax is a powerful free tax filing software like Wealthsimple tax. It is free, which makes it a great tool for those who want to save money. There are no income restrictions on what it can process. Other software providers would need you to subscribe to the paid version before you can file high-income tax online.
- It has no income restrictions
- It is full-featured
- It is free
- You cant use it on a mac computer
- It doesn’t have advanced tools and add ons
GenuTax is a Canadian tax software and one of the few software that is free to use. It is similar to the Wealthsimple tax in that it encourages users to donate but keeps the software free to use. There is a step by step guidance through all your taxes to help you claim deductions and credits.
Unlike most software, there is no income restriction, which means you can file taxes regardless of how much you earn. It is powerful enough to process investment income and various tax scenarios. There is also an auto-fill my return feature, which automatically fills in parts of your returns.
UFile
It is perfect for self-employed individuals and people filing taxes in Canada for the first time since it is free for them. It is easy to use and has great security. It doesn’t have a mobile application, which greatly reduces its flexibility.
- Ideal for low-income families
- Free for post-secondary students
- It has no application for mobile devices
UFile is a Canadian tax software designed for the following: post-secondary students, first-time federal tax filers, total family income less than $20,000, and people with simple returns. If you don’t fall in the above category. UFile guarantees accurate tax returns has autofill features, and guarantees you get the best refunds. No mobile application is available, but you can access the web version on your mobile device.
CloudTax
CloudTax is a powerful tax tool that focuses on easy use. If you file online, you will find the whole process smooth and intuitive. It is AI-powered, which makes it a superior free Canadian tax software.
- It is AI-powered.
- Unlimited technical support from a tax professional.
- It is not available in all regions
- It doesn’t cover income from rental properties.
CloudTax is one of the easiest-to-use tax filing software available to Canadians. It includes step-by-step guidance, smart search, and video tutorials to help you with your tax return. The software automatically calculates all possible deductions and gives you the max refund you deserve.
CloudTax can scan your tax slips to import them quickly, or you can manually input them. The customer support is excellent; you also get unlimited tech support and other tax educational materials to help answer all your tax-related questions.
StudioTax
StudioTax doesn’t store any information online. Everything is done locally on your computer, which makes your data secure.
- It is available in all regions
- Your data is stored offline to prevent theft and hacks
- Free for low-income earners.
- It has an outdated user interface
- Limited functionality compared to other software
StudioTax is free Canadian tax software that has been serving Canadians from all provinces for over a decade and is one of the most popular tools for filing taxes. It can handle various tax situations and is free if you file employment income less than $20,000. If you earn more than $20,000, you will need to pay $15. According to CRA regulations, you can file up to 20 returns per device.
How To Get Free Tax Software Canada?
You can get different software to file your taxes online. Most software has free versions used by several people for free tax filing. You can check this post, which answers your question about how to get free software to do your taxes.
What Is the Best Income Tax Software in Canada?
There are different tax software, and each has its strengths and weaknesses. They have standard features, such as auto-fill, audit protection, and employment income returns. Be sure to review our review to check the one that suits your needs. You can opt for free or paid software, depending on the complexity of your tax situation. Some paid tax filing software also provides you with help from a tax professional, which is helpful for high-net-worth individuals.
Final Thoughts
Tax filing software has revolutionalized how taxes are done by making the process easier, faster, and cheaper. There are different tax filing software, each with pros and cons. These software must adhere to CRA standards. Free tax filing software is your best bet if you want to file your returns quickly and can’t afford to get professional help.
Frequently Asked Questions (FAQs)
You can file your tax return by using any of the free CRA-approved software. The software must be NETFILE compliant.
NETFILE is used by individuals to file personal tax returns. However, EFILE is made for professionals to file on behalf of clients.
Yes, you can file taxes online for free. There are different software available for that purpose.
TurboTax Free has both free and paid versions. You may go for either, depending on your needs.
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