With the several tax preparation programmes available to Canadians, filing your taxes online has never been simpler. Additionally, you can now file your taxes online for nothing or for very little cost.
Basically, you can easily say “goodbye” to your accountant and not miss out on any tax deductions or credits unless your tax position is complicated or you run a sizable business.
How to File Your Canadian Taxes Online
In Canada, utilizing NETFILE or EFILE are the two main options to file your taxes online. Please don’t worry about those terms.
The Canada Revenue Agency (CRA) offers NETFILE, an internet transmission service that allows individual taxpayers to file their tax returns without using paper forms.
It would be best if you used tax preparation software that the CRA has approved, such as Wealthsimple Tax, TurboTax and a few others, in order to complete your online tax return using NETFILE.
Tax return submissions made through NETFILE are sent in a secure format directly to the CRA.
EFILE is an electronic submission service that tax preparers utilize to send the CRA information from your income tax return.
An accountant or tax preparation business can file your tax return using EFILE on your behalf for a charge if you are uncomfortable utilizing NETFILE or have a complicated tax return and need professional assistance.
Lower-income Canadians can now use the CRA’s “File My Return” programme to file their income tax and benefit return for free. Those who meet the requirements for this service can contact the CRA at 1-800-959-8281 or visit the My CRA website if you have any issues with using File My Return.
Canada’s Free Tax Software
Here are a few tax preparation programs the CRA has approved for NETFILE tax return uploads and the once that I have used. They all provide free tax filing choices, and some also have paid options.
The free version can usually handle the majority of tax scenarios. However, depending on your economic level, the software vendor might impose limitations and offer little to no phone or email support.
If in doubt, start with the free version and only upgrade if necessary, which is my usual recommendation.
WealthSimple Tax (Free)
The Canadian software WealthsimpleTax (formerly SimpleTax) is free to use when preparing your income tax return. Additionally, it recently made free crypto tax filing available, a first for Canada. It is authorized to use NETFILE by the CRA and Revenu Quebec.
You can file any form of return using Wealthsimple Tax that isn’t exempt by NETFILE, in contrast to the constrained options offered by many free tax preparation programmes.
This includes disclosing earnings from your own business, rental income, charitable contributions, profit from your investments, and more.
Here are a few advantages you might anticipate:
- Simple online tax preparation software.
- Detailed instructions and a 100% accuracy warranty. Wealthsimple will compensate you any fines or interest that you end up having to pay as a result of a software calculation error.
- Get your return via direct deposit in as little as eight days using their refund optimizer.
- Your confidential information will be protected by encryption.
- CRA-certified and compatible with Auto-fill My Return.
- Make several refunds per account.
- Seven days a week, you can reach customer service by phone and email.
- Accessible in all Canadian territories and provinces, including Quebec.
- You can utilize a variety of tax calculators for TFSA, RRSP, tax, and retirement scenarios.
- Available through desktop and mobile platforms.
- Canada’s top free tax preparation software.
TurboTax Canada (Free)
One of Canada’s most widely used online tax preparation tools is TurboTax.
The free version of TurboTax’s software covers the essentials and performs admirably for straightforward tax returns, despite the fact that it also comes in standard, premium, and self-employed versions.
What you receive from the free TurboTax programme is as follows:
- NETFILE-certified.
- Twenty free returns are allowed each year.
- Compatible with My Return’s auto-fill feature, which imports your tax data straight from the CRA.
- Maximum money-back guarantee
- Guaranteed accuracy of 100 percent, or they’ll pay back any fines brought on by a TurboTax calculation.
- After using NETFILE to file your return, you can immediately access your notice of assessment.
- If you need to make changes to your return, they offer REFILE.
- TLS encryption to protect your private data
- Available in Quebec.
Although phone support with one of their tax experts is not available in the free edition, you can use their free online community to discover solutions to your queries.
You should also be aware that various credits, income, and deductions, including self-employment income and costs, charitable contributions, investment income, rental income, etc., are not supported by TurboTax Free.