Filing taxes can be a daunting task, especially for those without a background in accounting or finance. However, there’s good news: free tax software can simplify the process of filing taxes online. By utilizing such software, you can save money that would have been spent on hiring a tax expert. Filing your own taxes not only makes it easier, but also results in cost savings every year.
The Trend of Online Tax Submissions: Is it Increasing?
As larger agencies tend to hire professional tax services, smaller businesses and solopreneurs have the flexibility to file their taxes online. The trend of electronic submissions is growing, with a study reporting that around 91.2 percent of Canadians opted for electronic submission in 2021. This percentage is expected to increase in the future, highlighting the rising popularity of filing taxes online.
Top Free Canadian Tax Software for 2023
To assist you in getting started, here are seven of the best Canadian tax software programs available. However, before selecting a tax software, it’s important to have a thorough understanding of a few crucial factors.
Firstly, it’s essential to choose a software that is user-friendly and straightforward. Additionally, it’s preferable to opt for software that includes tutorials.
Moreover, it’s necessary to select a tool designed specifically for Canadian tax requirements. The ideal option for Canadians is a NETFILE authorized system.
Wealthsimple Tax: A Comprehensive and Modern Tax Filing Solution
Formerly known as SimpleTax, Wealthsimple Tax is one of the newest and most advanced tax filing software available. It combines exceptional features from other tax return software to provide a well-rounded user experience.
Wealthsimple Tax is certified by both the Canada Revenue Agency (CRA) and Revenu Quebec, and is also authorized for NETFILE. Furthermore, if another company offers a lower tax rate or a larger refund, Wealthsimple Tax will compensate you.
100% Free: The program is completely free to use with no paid features, although you may be asked to donate voluntarily to support the company.
The software is internet-based and can be used on a local Windows or Mac computer. It is also available for download through the App Store and Google Play.
One minor drawback is that it may not be suitable for very complex tax situations.
TurboTax: A Popular and User-Friendly Tax Filing Software
TurboTax is one of the most well-known tax software packages in Canada. It is particularly suited for individuals with W-2 and unemployment income, as it allows for free filing of federal and provincial taxes. The program is NETFILE certified and supports up to 20 free returns per year. Additionally, you can determine who qualifies as your dependent to claim tax credits.
Free Version: The program does not have any paid features; however, you may be asked to make a voluntary donation to support the company.
Paid Version: The paid version comes with a maximum refund guarantee and is also compatible with Quebec tax laws. The company will compensate you $9.99 if another tax filing company offers a smaller refund or a larger refund. Purchasing the paid version is recommended if you want to transfer your tax information from the previous year.
TurboTax is available on Android, Windows, Mac, and iOS, making it accessible from various devices. Additionally, the program provides secure storage for your data.
It is best suited for simple tax returns and may not be suitable for more complex tax situations.
With over 50 years of experience, H&R Block is a well-known and trusted name in the tax preparation industry. They offer tax services for all types of taxpayers, including those who are self-employed or have investment income. The service is also available in Quebec.
Free Version: It allows users to file schedules 1 and 3 of Form 1040 to report business income, manage unemployment benefits, and certain deductions. Basic Online Help: Same as the free version, but with the added benefit of being able to contact a tax professional for advice. It starts as low as $69+state fee.
Deluxe Version: Users can easily itemize and claim credits, but it does not support Schedule C filings that include business expenses. The package starts as low as $44.99. Premium Version: Customers who need to file a Schedule D or E should choose this plan. It starts as low as $44.99 with state taxes. Self-Employed Version: Designed for freelancers and small business owners, this plan costs $44.99 for state and $109.99 for federal and can include Uber driver tax information.
Compatible with Windows or Mac computers, as well as Android and iOS mobile operating systems. Option to auto-import certain documents.
May not be suitable for all types of tax situations.
StudioTax: An Affordable Tax Software Option for Canadians
StudioTax has been providing tax filing assistance to Canadians for over a decade. The software is free for individuals residing in the Yukon, Northwest Territories, and Nunavut, as well as those with incomes below $20,000. For everyone else, there is a $15 fee to file up to 20 returns.
Free: The free version has all the features of the paid version. Paid: After the first 20 files, there is a $15 fee to print and file your taxes. Advantages:
Works on local Windows or Mac desktop, as well as iOS and Android devices. No income restrictions. Express Notice of Assessment feature. Disadvantage:
There is a cost to print your returns.
TaxTron: Affordable Tax Filing Solution
TaxTron is a NETFILE and EFILE software that offers free tax filing options for those in need. However, if you are a tax practitioner with an EFILE number, you will need to purchase a paid version to use the program.
Free version: You can use the tool to download a printable copy of the CRA submission for free. Individual licenses: These start at $12.99 for Windows and $19.99 for Mac. Professional version: This costs $249.99 for Windows and $595 for Mac. Family rates: Starting at $24.99 for Windows and $39.99 for Mac. Corporate Professional: Costs $249 and is available for both Windows and Mac. Corporate (single license): This costs $99.99 for Windows and $99.99 for Mac.
Excellent customer support, safe and secure to use, and can handle a variety of scenarios.
Not completely free, and it doesn’t support Quebec’s CO-17 form.
GenuTax Standard – A Comprehensive Tax Software for Canadians
GenuTax Standard is a comprehensive tax software that enables Canadians to claim the deductions and credits they are entitled to, such as funding profits, rental homes, and small corporations. The software is free for the first 12 months and allows users to file up to 20 individual tax returns.
Free: All features are included, but a voluntary donation is encouraged to support the company.
NETFILE-certified program and Auto-fill My Return feature. Ability to handle up to 20 returns.
The software only works on Windows and requires installation.
CloudTax: The Ideal Choice for Non-Business Tax Filing
CloudTax is a popular choice for Canadians looking to file their non-business tax returns. This Canada Revenue Agency – Canada.ca certified software uses NETFILE certification and offers ReFILE and Express NOA support at the free level.
Free: This version supports deductions, earnings slips, creditors, and employment income. However, other incomes are not supported. CloudTax Plus: Offers some additional features, including audit protection, business profits, foreign income, and rental income. The cost of more than 20 returns is $24.99 each. Plus: Starting at $69, this version comes with all the features, including support for business returns.
Can be used on mobile devices and provides excellent customer service. Offers step-by-step guidance.
The free version only supports employment income and doesn’t support some regions.