Benefits Of Using Tax Software + Giveaway!

by Tax Guy - Burlington Accountant on February 1, 2010 Print This Post Print This Post

I published the 2010 Canadian Tax Software Review yesterday but ran into a bit of a technical glitch! I apologize to anyone who was surprised to see a “Page Not Found” error. The link to the review is now live!

Whether you are a novice or a have prepared your taxes for years, tax software will simplify the process and save you time and money.

Tax software programs are usually step-by-step and you can complete a tax return faster than on paper and in less than half of time. All provinces and territories tax returns are fully integrated (except Quebec) with the federal tax return and the tax software will pre-fill all of the additional provincial forms automatically.

A Note About Quebec Tax: Quebec has a separate tax filing system that is filed separately with Revenue Quebec. Not all tax software supports the Quebec returns. If you were a resident of Quebec, be sure to confirm whether your software includes the Quebec returns.

Software Saves Money

Most tax software cost less than to hire an accountant. In many cases, a basic return filed by an accountant can start at around $150 or more whereas you can purchase software for as little as $6.99, and in some cases free.

Some software will search for deductions and tax credits you may be entitled to and others provide analysis tools to help you maximize things such as RRSP contributions, charitable donations, or other opportunities to save taxes.

Test Scenarios

One of the biggest benefits of using software to prepare your taxes is the ability to make changes and analyze the impact. For example, you can test whether it makes sense to claim charitable donations on your return or your spouses or if you should make another RRSP contribution before the deadline.

The CRA’s EFILE Program

NETFILE is a program offered by the CRA to allow you to file your taxes over the internet. Most Canadian Tax Software (and all of the software in this review) are NETFILE certified. The certification only means that the software provider complies with the NETFILE requirements. The CRA does not review the privacy policy of the software or does it test the software for accuracy. If a mistake is made on your return, you are responsible for taking it up with the software provider.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

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