As we all know that there are a lot of free tax software in Canada but here we will talk about some of the best free software available in Canada.
1. How To File Taxes Online in Canada?
NETFILE is a certified tax software. It is an online transference service offered by the Canada Revenue Agency (CRA). Canadian individuals can send their tax returns without using hardcopy tax forms.
On the other hand, EFILE is also a free tax filing software. It is also an electronic submission process that is used by tax preparation assistance to transfer your income tax return details to the CRA.
The online help centre is available 24/7 hours to help you.
2. Top Free Tax Filing Software
- Turbo Tax-Free
- Wealthsimple Tax
- H&R Block
The above are all tax-free software certified by the CRA. These software offer free options to register your taxes while some also have paid versions.
Usually, the free version of the software can help most tax situations but there are some restrictions and limitations for these free versions.
Although we will suggest you use the free version first and if required later then upgrade to paid version only.
2.1 TurboTax Free Canada
TurboTax Free is one of the most famous and top-rated tax return software in Canada.
The TurboTax Free provides free standard, premium, and self-employed versions. The free version covers most of the basic problems and issues.
This software can be used on mobile devices, desktops, tabs, and laptops.
2.1.1. The Benefits of Using TurboTax Free Software
- You can get up to 20 free returns every tax year.
- Provides auto-fill return compatibility.
- Auto-fill return directly imports your tax information from CRA.
- Provides a refund instantly and a maximum refund guarantee.
- Guarantee of 100% accuracy, in case of any issue, arising due to automatic calculations from TurboTax then the penalty will repay by them.
- After the submission of the return using NETFILE, you will instantly access your notice.
- They also provide REFILE if any adjustment is required to make on your return.
- To secure personal information it provides TLS encryption.
- Available in Quebec.
- Provide access to a live tax expert.
The free version of TurboTax does not provide phone support with any of their tax experts, any credits, income, or deductions like income or expense on self-employment, donations, income on investment, or rental income.
2.1.2. Merits of Using TurboTax
- Easy to use along with step-by-step guidance.
- Using the premium version you can get expert help, The tax experts also can do your taxes.
- Guarantee of maximum refund.
2.1.3. Demerits of Using TurboTax Free
- The unpaid version has very limited offerings and can’t support all tax situations.
- The premium version is quite expensive.
2.2 Wealthsimple Tax
Wealthsimple Tax is previously known as SimpleTax. It is a free tax filing software for your income tax return. Recently it started introducing free filing of crypto tax in Canada.
In 2012 SimpleTax was founded. A few days ago it was obtained by the famous robo-advisor, Wealthsimple Tax. It is certified by the CRA as well as Revenue Quebec to NETFILE.
It contains reporting of employment income, income from rental properties, donations, income from investments, medical expenses etc.
If you are connected with crypto training then this software will help you to calculate any capital gains or deprivation and will get included in tax filing. Various types of crypto exchange that you will get from here are Wealthsimple, Crpyto, Bitbuy, NDAX, Shakepay, and 300 more.
If you want to get CRA audit support then you can upgrade it to premium.
2.2.1 Merits of Using Wealthsimple Tax
- Convenient to use.
- Step-by-step guidance along with 100% accuracy. In case due to software-related problems if you need to pay any interest or penalty then it will be covered by Wealthsimple tax.
- Provide a high refund. It will take a maximum of eight days to direct deposit the amount.
- It is available in all types of regions.
- Suitable for all kinds of devices.
- Here you can get various types of tax calculators like TFSA, RRSP, and other retirement tax scenarios.
- File any type of return along with step-by-step guidance.
- Guarantee of a huge refund.
- Approved NETFILE by CRA.
- Availability of audit support
2.2.2 Demerits of Using Wealthsimple Tax
- High knowledge about tax is necessary.
- Customer support is limited.
- You will not get a tax review from any expert.
2.3 H&R Block Software
It is a software that offers the service of tax to Canadian people. It is one of the oldest online software providing services for 55 years. In Canada, there are more than 1000 offices available from where you can get the service of tax in person as well as drop off your documents.
Three types of options are available for filling your 2022 tax return online by using H&R Block- Free (0 dollars), Assistance(24.99 dollars per return), and Protection(44.99 dollars per return).
2.3.1 Offerings of H&R Block Software
- Certified by NETFILE
- Maximum automatic refund
- Simple using process
- Can be accessed able from online centres
- You can auto-fill my return downloads on a few of your tax slips straight from CRA and Revenue Quebec.
In some situations, if you want some kind of help and support to perform your tax return the products of assistance provide unlimited tech support. It provides the transfer list of your last year’s tax details.
Besides this, if you need audit protection, priority support, and capable of storing your return online for the last seven years.
2.3.2 Merits of Using H&R Block Software
- Options for tax filing include in-person, online, and on phone
- Certified by NETFILE
- In the premium version audit protection and expert help will be available
CloudTax free is a software for using non-business tax returns. The software was created by Nimalan Balachandran and it is also certified by Canada Revenue Agency.
2.4.1 Offerings of CloudTax Software
- Auto-fill my return.
- Able to access the platform on web and mobile devices
- It is encrypted for data security
- Storage for online tax return
- It also provides optional audit protection of 2.99 dollars per month from this payment you can also get expert help
2.4.2 Merits of Using CloudTax Software
- You can get audit protection at a very minimal cost
- Certified by NETFILE
- Limitless chat support
2.4.3 Demerits of Using CloudTax Software
- An unpaid version of the software is not available in Nunavut, Quebec, Yukon, and Northwest Territories
- The free version will not have self-employed individuals or rental income
2.5 uFile Free
It is free software for income tax returns used in Canada. You can directly use the software on your mobile phones, laptops, and desktops. A Windows version of the software is also available.
ufile free service is offered in partnership with the Canadian Federation of Students.
2.5.1 Services Provided By uFile Software
- For filing of simple tax return
- An outsider who came to Canada to file their first federaltax return
- The person with less income pays taxes with a total family income offewer than 20,000 dollars.
The minimum cost for upgrading the software is 19.95 dollars.
2.5.2 Merits of Using uFile Software
- Eligible people for using the free version are outsiders who came to Canada, students, and families with low income
- Guarantee of triple accuracy
- Approved by autofill and NETFILE
2.5.3 Demerits of Using uFile Software
- Very few people can use the free version due to its restrictions
- No support for chat
It is also certified software for tax services. It is only available as an installation file for windows computers. It can control most tax scenarios. They also ask for a donation to support the company.
It is very useful for uncomplicated and complicated tax situations. This situation includes small business tax income for rental property.
2.6.1 Merits of Using GenuTax Software
- From 2010 you can only file up to 20 tax returns
- Certified by NETFILE
- Easy to use, free of cost
- Limited services for customers are available and you can create only up to 20 tax returns via email.
2.6.2 Demerits of Using GenuTax Software
- Forms like T2203 and T1135 are not supported by it
- Only applicable to use in Windows
- Quebec provincial is not supported
It is a free tax software used for income tax services. you can use the software of various devices like mobile phones, laptops, tabs, etc. You can use the program in various languages like English, French, and Chinese.
They reported that it only takes 3 to 5 minutes to submit the tax return and a maximum of up to 10 minutes for families.
2.7.1 Merits of Using AdvTax Software
- Certified by bothNETFILE and EFILE
- Low-income individuals can fill it out online for free
2.7.2 Demerits of Using AdvTax Software
- The interface is outdated and can be immense with text
- 50% possibility to get free filing taxes online
- Certified by CRA
- Can track refunds
- Can optimize refunds
- 20 returns per year
- Option of auto-fill my return
- The online version is not available
It is a free tax service provider software. New customers, newcomers, senior citizens, and persons will income can use the software. You can use it online no need to download it. It is a very affordable software.
Both simple and complex tax situations can handle by it. It has inbuilt tools like tax saving and error checking. It gives audit support. The premium version will cost just 6.99 dollars for your first returns tax and 3.99 dollars for other tax returns.
- Auto-fill my return from CRA.
- Express notice for evaluation
- Safe and secure to use
- Built error-checking facility
- ReFILE option
3. Need Of a Tax Professional
There is no hard and fast rule you must need a professional to file your taxes. You can solve your situation by yourself and in case if you can’t handle a complicated situation then you may need a tax professional.
Complicated situations arise when you have self-employment income, investment income, income from rent, and others. The choice is yours whether you want to use tax professionals or not but by using tax professionals you can get more facilities.
Some external benefits that tax professionals provide are tax planning, choosing the correct investment account, can maximize your welfare, etc.
4. Things Need To be Kept in Mind
- The tax software must be certified by NETFILE
- Available in your region and hold up your language
- Not complicated to use and is available on any kind of device
- The version of your software must need to control the tax situation
- Unlimited tech support
5. Advantages of Using Tax Software
Nowadays filing taxes online is very popular. The advantages of using tax software online are-:
- It is a very cost-effective process-: To use this software you don’t have to pay any hidden fees.
- The process of refund is much faster than offline-: If you submit your tax then it provides a refund much faster compared to offline. The reason behind it the IRS will receive electronically instead of by mail.
- The software has 100% accuracy-: At the time of using this software, the auto-fill option automatically fills your return. If any penalty occurs due to the software then it will be paid by them
- All the software is very user-friendly-: All the software is very simple and easy to utilize.
- It is a convenient way-: It is a very convenient process as you can file tax online from wherever you are.