Paying taxes can be hard and intimidating, especially if you don't know how to do accounting or finance. But there is good news: There are free tax software that makes it easy to file your taxes online. One of the main benefits of using the tax return software program is that you can save money by not having to pay a tax expert. When you file your own taxes, you will save money every year.
Is submitting taxes online an increasing trend?
So, the big agencies will hire professionals. However, the majority of small businesses and solopreneurs have the option of filing taxes online. People are increasingly opting for electronic submissions. According to a study, approximately 91.2 percent of Canadians chose to send documents electronically in 2021, and this percentage is expected to increase in the coming years.
2024's Best Free Canadian Tax Software
When selecting a tax preparation software solution, one of the most vital aspects to evaluate is the overall usability and ease-of-use offered to filers. Ideally, look for a program that incorporates a straightforward interface alongside tutorials and clear guidance that simplify the process from start to finish. Understanding key features like the learning curve or built-in guidance available becomes paramount especially for tax law novices navigating preparation of their T1 returns for the first times.
As we explore seven of the leading tax software packages available to Canadians, special attention should be paid assessing the user-friendliness designed into each program. Focusing on those emphasizing simplification and transparent support through preparation, filing and even audit defence places the odds of a smooth, compliant filing within closer reach. Now let's examine key options that aim to make DIY tax filing easier versus more painful or complex to finalize.
You can only get hold of a tool designed for Canadian tax. NETFILE authorised systems are perfect for Canada.
Wealthsimple Tax
Formerly SimpleTax, Wealthsimple Tax is one of the more current profit tax filing programmes available. It seems to combine the exceptional capabilities of other tax go-back software to make a properly-rounded application.
This is certified by the CRA and Revenu Quebec; the software is NETFILE approved. If another company offers a lower tax rate or a larger refund, the company will pay you.
Tax Plans:
100% Free: The programme is free to use with no paid features, yet you may be asked to donate (voluntarily) to support the company.
Advantages:
- An Internet-based model can be used on a local Windows or Mac computer.
- It can be downloaded through the App Store and Google Play.
Disadvantage:
- One tiny error is that it may not be suitable for very complex problems.
TurboTax
TurboTax stands as one of the most recognized and widely-used tax filing software options available to Canadians. It specializes in handling simple tax situations such as those involving T4 wage and unemployment income. Utilizing TurboTax, filers can prepare their federal and provincial tax returns completely free of charge.
As a CRA NETFILE certified program, TurboTax supports submitting up to 20 returns per year electronically directly to the Canada Revenue Agency. It incorporates tax credit eligibility rules to automatically determine dependents that qualify. Overall, TurboTax aims to provide an easy-to-use, compliant and no-cost tax preparation solution for simple tax returns. Its brand name recognition and specialization in W-2 style income tax filing makes it an accessible choice for many filers.
Tax Plans:
- Free Version: There are no paid features; however, you may be asked to make a (voluntary) donation to support the company.
- Paid version: It comes with a maximum refund guarantee and works in Quebec as well. The employer can pay you $9.99 if every other enterprise offers a smaller tax or a large refund. You should buy the paid version of the software if you want to transfer your tax information from the previous year.
Advantages:
- You can easily work with Android, Windows, Mac, and iOS.
- Your data will remain safe and secure.
Disadvantages:
- It is only appropriate for simple returns.
H&R Block
H&R Block is a famous name inside the industry and has presented tax-associated offerings for over five years. It lets you record your profits tax return, even if you're self-hired or have investment profits. The service is available to Quebecers as well.
Plans Available:
- Free Version: It works well and lets users file schedules 1 and 3 of Form 1040 to document enterprise income, handle unemployment benefits, and certain deductibles.
- Basic Online Help: The 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 rate.
- You can easily itemise and declare credits, but it doesn't help with Schedule C filings that include commercial enterprise prices. The package begins as low as $44.99.
- Customers who want to record a Schedule D or E should choose this plan. It starts as low as $44.99 with state taxes.
- Version for self-employment:Made for freelancers and small-enterprise proprietors, this plan costs $44.99 for the country and $109.99 for the federal government and can include Uber driving force tax statistics.
Advantages:
- It works with Windows or Mac computers, or with Android and iOS mobile operating systems.
- facility to auto-import certain documents.
Disadvantage:
- It may not be enough for everyone.
StudioTax
StudioTax has been helping Canadians record their income tax returns for over a decade.
It was free, and it is still free for those in the Yukon, Northwest Territories, and Nunavut and those with earnings below $20,000. But for the relaxation people, it costs $15 to submit most of the 20 returns.
Plans:
- Free: This version has all the features of the paid version.
- Paid: $15 after the first 20 files to print and file your taxes.
Advantages:
- Work locally via a Windows or Mac desktop, also for iOS and Android devices.
- No income restrictions.
- The Express Notice of Assessment feature
Disadvantage:
- You must pay to print your returns.
TaxTron:
TaxTron is NETFILE and EFILE software that makes it viable to report your taxes without cost. However, the loose version is the most applicable in situations where you are at a loss. Tax practitioners with an EFILE variety will have to buy a paid version to use the program.
TaxTron Plans:
- You may use the device to download a printable copy of the CRA submission for free.
- Individual licences are $12.99 for Windows and $19.99 for Mac.
- Professional: $249.99 for Windows and $595 for Mac.
- Rates for families start 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): $99.99 for Windows and $99.99 for Mac.
Advantages:
- Excellent customer support. Safe and secure to use.
- can cover a variety of scenarios.
Disadvantages:
- Not free.
- It doesn't support Quebec. CO-17
GenuTax Standard
GenuTax Standard is free for 12 months for Canadians. The platform allows users to claim deductions and credits they may be entitled to—genuTax, including funding profits, apartment homes, and small corporations. Users are capable of reporting the most 20-character tax returns.
Plan:
- Free: There are no paid functions, but you may be asked to donate (voluntarily) to aid the agency.
Advantages:
- NETFILE-certified programme & Auto-fill My Return feature.
- can control up to 20 returns.
Disadvantage:
- It only works on Windows & instals to use the app.
CloudTax
CloudTax is the go-to alternative for humans seeking out non-commercial enterprise tax returns. This Canada Revenue Agency licenced software uses NETFILE certification and supports both ReFILE and Express NOA at the free stage.
Plans:
- free: deductions, earnings slips, creditors, and employment income. Other incomes aren't supported.
- CloudTax Plus: some additional capabilities along with audit protection, commercial enterprise profits, foreign earnings, and condominium profits. More than 20 returns will cost you $24.99 each.
- Plus: Starting at $69, comes with all the capabilities and enterprise returns.
Advantages:
- can be used on mobile devices and has excellent customer service
- offers step-by-step guidance
disadvantages:
- The free version only helps employment income and doesn't support some regions.