The Canadian government requires individuals and businesses to file their tax returns on an annual basis, and there are many software options available to help make the process easier. Here are the top 10 CRA-approved tax software options in Canada:
| Software Name | Price (Individual) | Price (Business) | Free Trial | Platform |
|---|---|---|---|---|
| TurboTax | $19.99 – $129.99 | $74.99 – $299.99 | Yes | Online, Download |
| UFile | $19.99 – $34.99 | $139.99 – $229.99 | Yes | Online, Download |
| H&R Block | $14.99 – $59.99 | $84.99 – $224.99 | Yes | Online, Download |
| StudioTax | Free | Free | N/A | Download |
| GenuTax | Free | Free | N/A | Download |
| SimpleTax | Free (Donation-based) | N/A | Yes | Online |
| TaxTron | $9.95 – $44.95 | $49.95 – $149.95 | Yes | Download |
| FutureTax | $6.99 – $39.99 | $29.99 – $139.99 | Yes | Download |
| Dr. Tax | $6.99 – $39.99 | $29.99 – $139.99 | Yes | Download |
| Cantax | Price upon request | Price upon request | Yes | Download |
The prices listed above are subject to change and may vary based on individual circumstances. It is important to do your own research and compare prices and features to determine which software is right for you.
- TurboTax is the most widely used tax software in Canada, with over 7 million Canadians using it to file their taxes in 2020.
- SimpleTax is a relatively new player in the tax software market, having only been founded in 2012, but it has quickly gained a reputation for being user-friendly and affordable.
- Cantax is primarily aimed at tax professionals and may not be the best choice for individuals or small businesses.
Before the advent of tax software, individuals and businesses had to manually fill out paper tax forms and submit them by mail or in person. This process was time-consuming and prone to errors, which led to the development of tax software in the 1980s and 1990s. The first tax software was created by Intuit, the same company that now produces TurboTax.
Examples:
- Mary is a small business owner who has used TurboTax for the past five years to file her taxes. She appreciates the user-friendly interface and the ability to import data from previous years.
- John is a freelance writer who recently started using SimpleTax to file his taxes. He likes the fact that it is free (with the option to donate) and that it is easy to use on his computer or mobile device.
- Sarah is a tax professional who uses Cantax to prepare tax returns for her clients. She likes the advanced features and the ability to handle complex tax situations.
Pros and Cons of CRA-Approved Tax Software
| Tax Software | Pros | Cons |
|---|---|---|
| TurboTax | Easy to use, interview-style format, built-in calculators, good customer support | Some users may find the pricing too high, mobile app could use more features |
| SimpleTax | Free to use (pay what you want), user-friendly, auto-fill my return feature, supports all tax situations | Limited customer support, may not be suitable for those with complex tax situations |
| H&R Block | User-friendly interface, built-in calculators, access to tax professionals, mobile app available | Some users may find the pricing too high, some features may be less user-friendly than competitors |
| UFile | Easy to use, good value for money, handles complex tax situations | Customer support can be slow, some users may not like the interface |
| StudioTax | Completely free, handles all tax situations, can be used on multiple devices | No customer support available, interface can be overwhelming for some users |
| GenuTax | Free to use, handles all tax situations, can be used on multiple devices | No customer support available, interface can be confusing for some users |
| TaxFreeway | Free version available, supports all tax situations, includes built-in calculators | No customer support available, interface can be less user-friendly than competitors |
| Cantax | Comprehensive software for tax professionals, good value for money, handles complex tax situations | Not suitable for individual users, interface may be overwhelming for some users |
| TaxTron | Affordable pricing, supports all tax situations, available on multiple platforms | Limited customer support, interface can be confusing for some users |
| AdvTax | Handles complex tax situations, easy to use, affordable pricing | Limited customer support, interface may be less user-friendly than competitors |
It’s important to note that the pros and cons of each tax software can vary depending on the individual user’s needs and preferences. Some may prioritize user-friendliness while others may be more concerned with pricing or customer support.
To provide an example, let’s say an individual with a complex tax situation is looking for a tax software. They may find that Cantax is the best option for them due to its comprehensive features for tax professionals and handling of complex tax situations. On the other hand, someone with a more straightforward tax situation may prefer SimpleTax for its user-friendliness and pay-what-you-want pricing.
The Future of CRA-Approved Tax Software
As technology continues to advance and more Canadians opt to file their taxes online, it’s likely that CRA-approved tax software will only continue to grow in popularity. However, it’s important to remember that tax laws and regulations can change over time, and software may need to be updated or modified to reflect these changes.
In recent years, the CRA has also been increasing its use of data analytics and artificial intelligence to identify potential tax issues and discrepancies. This could potentially impact the development and use of tax software in the future, as these tools become more sophisticated and integrated into the tax filing process.