It’s the second most stressful time of the year after Valentine’s Day. It’s tax season in Canada and the deadline for filing most 2015 returns is only a month away, on Saturday, April 30, 2016.
Filing your taxes is easier than ever with a plethora of online resources and software at your disposal. Gone are the days of manual calculations and last-minute panic, as many tax programs can file basic returns for free, giving you piece of mind and the ability to do everything while wearing pyjamas in the comfort of your home.
We’ve listed the programs approved by the Canada Revenue Agency below. Each program is available for free and NETFILE-certified, meaning you can submit your return immediately to the CRA.
SimpleTax (Web)
SimpleTax is a web-based software that promises an intuitive interface and simple process for filing your return. It's one of the more popular options in our Personal Finance forum and the full software package is free, though there is a “pay what you want” option if you wish to support them with a donation.
TurboTax (Web, Windows, Mac, Mobile)
One of the more well-known tax programs, TurboTax offers free basic returns and is one of the few programs with a mobile app for iOS and Android. While basic filing is free, features such as automatic credit searching and importing previous returns are only available with paid versions, which start at $13.49.
H&R Block Tax Software (Web, Windows)
Known for their brick and mortar locations, H&R Block also offers free web-based or downloadable software options for filing your taxes. Unlike TurboTax, the H&R Block Tax Software does automatically search for applicable tax credits and you can even import previous returns from other programs. While basic returns are free, extra add-ons like audit protection are available for an additional fee.
StudioTax (Windows, Mac)
One of the first free tax programs in Canada, StudioTax has been filing taxes since 2005 and their free software is available for Windows or Mac. Unlike other free programs, StudioTax is one of the few that can also process Quebec provincial tax returns. Like SimpleTax, StudioTax runs on an optional donation platform.
GenuTax (Windows)
GenuTax is a Windows-only software that offers a no-frills approach to your tax returns. While it won’t dazzle you with its user interface, it is comprehensive and completely free. Like SimpleTax and StudioTax, it accepts optional donations in lieu of payment.
Ye Olde Fashioned Method
You can find free tax packages at any Canada Post location or download them directly to fill out your taxes manually. Of course, this method will take the longest and isn't 100% free, since you'll have to pay for postage, but if you're Ned Flanders or enjoy a challenge, this method is an option (though not recommended).
There are other NETFILE-certified programs approved by the CRA, including UFile, TaxTron, VirtualTax and others. These programs are listed as "free with restrictions" on the CRA website, as many of these programs only offer to prepare your tax return for free and will typically require a fee to actually file your return.
While all of the programs we listed are free and meant to be simple to use, note that some only offer basic returns and do not offer more advanced tax returns (such as returns for contract workers or businesses) without a paid version. Everyone's taxes are different, so be sure to read reviews, along with the software features and FAQ to ensure that it’s ideal for you before committing to one.
Other Tips
- Limited uses -- Free programs offer a maximum of 20 returns per computer, as mandated by the CRA, since the software is meant for individual use only
- Be prepared -- Gather all of your tax forms (T4, T2125 for contract workers, T2202A for students, etc.) and calculate any potential credits (rent, transit passes, RRSP contributions, business expenses, etc.) before filing your return to streamline the process. Most software is capable of saving your progress, but like ripping off a bandage, many find it easier to finish your taxes in one pass
- Don't procrastinate -- While there’s no need to fear the deadline when filing your return online as the process is instantaneous, it’s not a good idea to procrastinate. However, if you do plan to wait until the deadline, be prepared with your financial information and remember that you'll have less time to have questions answered
- Ask questions -- Taxes can cause a larger headache than Jaden Smith’s Twitter timeline, but don’t be afraid to ask general questions in places like our personal finance forum or seek advice from a professional for more confidential or specific questions
Taxes are annoying, but think of that sweet refund you'll receive once you're done.
What's your favourite program to file your taxes? Have you filed yours already or are you holding off until the deadline? Let us know and happy taxing!
FAQs
Although the filing interface is relatively simple, allowing you to add forms and do basic math equations, it does not offer any tax support, filing guidance or help. People who use this service should be comfortable understanding and navigating tax forms on their own.
How hard is it to do your own taxes? ›
Although the United States tax code is a complex one, it's not difficult to do your taxes on your own. That is, as long as you use a quality software solution to guide you through the process. Consider signing up for TurboTax, H&R Block or another leading software solution now to get started.
Can I get a tax refund if my only income is social security? ›
You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.
How do I file a $0 tax return? ›
Since you didn't earn any income for the year, you'll enter a "-0-" in each blank. Your total income will also be "-0-." Double-check to make sure that none of the income categories applies to you. For example, if you have money in a savings account that earns interest, you may have to report that interest as income.
Is TurboTax free file really free? ›
If you have a Form 1040 return and are claiming limited credits only, you can file for free yourself with TurboTax Free Edition or TurboTax Live Assisted Basic (if available), or you can file with TurboTax Full Service Basic at the listed price.
Is it worth paying someone to do your taxes? ›
If you're confident about your ability to understand the tax code, then doing your own is a smart way to save. If not, it's probably time to pony up the cash and hire an expert. Ultimately, you have to weigh the value of your time and money against your peace of mind.
Why is filing taxes so hard? ›
Given the difficulty of deciphering complicated rules and the fear of making a mistake or missing out on a deduction, many people turn to professionals or pay to use software. But this tax season, help could be on the way for certain taxpayers.
How do I get the $16728 Social Security bonus? ›
There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
At what age is Social Security no longer taxed? ›
Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.
What disqualifies you from earned income credit? ›
You can't claim the EIC unless your investment income is $11,000 or less. If your investment income is more than $11,000, you can't claim the credit. Use Worksheet 1 in this chapter to figure your investment income.
Yes, you can still file a tax return even if you have little to no income to report. You may even receive a refund if you qualify for any refundable tax credits.
How to get the most out of your paycheck without owing taxes? ›
Key Takeaways
To receive a bigger refund, adjust line 4(c) on Form W-4, called "Extra withholding," to increase the federal tax withholding for each paycheck you receive. Tax withholding calculators help you get a big picture view of your refund situation by asking detailed questions.
Is it better to claim 1 or 0? ›
Claiming 1 reduces the amount of taxes that are withheld from weekly paychecks, so you get more money now with a smaller refund. Claiming 0 allowances may be a better option if you'd rather receive a larger lump sum of money in the form of your tax refund.
Can anyone use the IRS Free File fillable forms? ›
What are the qualifications to use Free File fillable Forms? With Free File Fillable forms, there are no limitations for income, age, location within the United States or any other criteria. Free File Fillable Forms provides forms that most individual taxpayers require to file their federal taxes.
What are the limitations for IRS Free File? ›
The IRS Free File adjusted gross income (AGI) limit for tax year 2023 is $79,000 for families and individuals. Each provider sets their own eligibility requirements based on age, state residency and income, and offers are available in English and Spanish.
How many people use IRS Free File? ›
Share of taxpayers using Free File declined in 2022
Just under 3.3 million federal taxpayers used Free File in fiscal year 2022. But 102 million didn't, despite being qualified. In 2020 and 2021, the share of Free File users had increased over previous years — to 2.8% and 3.1%, respectively.
What is IRS Free File? ›
Free File is one of many IRS e-file programs, with it taxpayers who earn $54,000 or less can prepare and file their federal taxes for FREE. Taxpayers who use Free File still receive the same benefits of IRS e-file, but the services are free. Free File is only available at www.irs.gov.
