If you are looking for an intuitive tax software that helps you do your taxes using your desktop or mobile app and ensures you get your maximum refund, then CloudTax may be an option for you.
Launched in 2015 by Nimalan Balachandran, CloudTax is a Canadian finance app that gives you the option to file your taxes for free or for a fee if you choose a tax expert from CloudTax to file your returns for you. The app uses artificial intelligence to gather data and provides a step-by-step guided application and full customer support.
In this CloudTax app review, I will cover the subscription plans it offers, their features, the app’s security and compare it to other popular Canadian tax filing systems.
CloudTax Summary
CloudTax Software
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Overall
Summary
Online tax app CloudTax offers a free plan and a paid option called the CloudTax Plus, which costs $29.99 annually. Both come with features like the ability to file your income taxes directly to the CRA through NETLIFE, Auto-Fill My Return (AFR), and unlimited technical support. The free plan allows you to file two returns in one account, while with a paid plan, you can file up to 20 returns in a single account, plus unlimited live tax help from CloudTax experts. Unlimited access to tax experts is among the main benefits of CloudTax while limited availability is one of its primary disadvantages.
Pros
- Option to file income taxes for free
- Returns sent directly to the CRA
- Access to tax experts
- Compatible with Android and iOS apps
- High-level of security and data encryption
- Uses AI to handle data
Cons
- Not offered in all of Canada
- The free plan only covers basic filings
CloudTax Products and Pricing
There are two tiers for Canadians to choose from: a free basic filing option and CloudTax Plus, which is a paid version that includes several premium features.
Here is a breakdown of what each tier of CloudTax offers:
CloudTax Free
As its name suggests, CloudTax’s basic tier is completely free to use. It enables you to submit your income taxes securely to the Canada Revenue Agency (CRA) through NETFILE, CRA’s electronic tax-filing service.
The CloudTax free version also offers the following benefits:
- Step-by-Step Guidance from CloudTax customer support
- Includes COVID-19 support
- Auto-Fill My Return (AFR)
- Smart Search
- Video Tutorials
- Unlimited technical help from tax experts
- File 2 Returns in one account
Since CloudTax Free only covers basic filings, it may not be suitable for you if you are self-employed or have rental income to report.
Related: How to register and open a CRA My account.
CloudTax Plus
The CloudTax Plus version of the app builds on all of the features provided in the basic CloudTax free version. With a one-time payment of $29.99, users get access to the following:
- Everything included in the CloudTax Free version
- Unlimited live tax help from tax experts
- Customized tax tips for your scenario
- Includes Audit Protection for the primary account
- File up to 20 returns in one account
The real benefit of CloudTax Plus is gaining access to live tax experts to help you through the process. You can also file up to 20 returns with one account, which is ideal for large families or small businesses.
Pros and Cons of CloudTax
The thing that will catch most people’s attention is that CloudTax allows you to file your income taxes for free. The free version is fairly robust compared to other paid Canadian tax filing services.
If you choose to upgrade to CloudTax Plus, you get an even more fulsome experience. Having live access to actual tax experts is invaluable and much cheaper than filing your taxes in person.
Another advantage to CloudTax is that both versions are compatible with its Android and iOS apps. This means you can file and manage your taxes on any device.
On the other hand, the CloudTax Free version is only usable in most basic filings. It does not include self-employment income or rental income, which are usually included in most free filing services.
Another disadvantage of CloudTax is that residents of the Yukon, Northwest Territories, Nunavut, and Quebec are not eligible to use the service. This means that nearly 8.7 million Canadians cannot use the app.
Is CloudTax Safe?
CloudTax uses the highest level of Google security and data encryption for its web and mobile apps.
The mobile version of CloudTax also allows you to utilize biometrics like face recognition ID or fingerprint ID to secure your logins.
CloudTax is likewise licensed and regulated by the security standards of the Canadian government. The company also states that it does not sell any of your private data to third parties.
Finally, the company utilizes NETFILE to submit your return directly to the CRA, preventing other entities to get a hold of your data when you submit your taxes.
CloudTax vs. Alternatives
Here is how CloudTax compares to its competitors in Canada.
| Features | Turbo Tax | Wealthsimple Tax | StudioTax | CloudTax |
| AI-Powered Slip Scanning | No | No | No | Yes |
| Unlimited Technical Support Via Live Chat | No | No | No | Yes |
| Transfer Last Year’s Data | Yes | Yes | Yes | Yes |
| View PDF Prior to Filing with CRA | Yes | Yes | Yes | Yes |
| Medical Expenses | No | Yes | Yes | Yes |
| Digital Return Storage | Yes | Yes | Yes | Yes |
| Video Tutorials | No | No | No | Yes |
| Mobile App for iOS an Android | Yes | Yes | Yes | Yes |
| Price for Premium Tiers | Starts at $20.99 | By donation, suggested $19.00 | $15.00 | $29.99 |
| Availability | All Canadian Citizens | All Canadian Citizens | All Canadian Citizens | Not Currently Available in Yukon, Northwest Territories, Nunavut, or Quebec |
CloudTax vs TurboTax
TurboTax
On TurboTax’s Website
- Fees: $0 to $34.99 (Get 15% discount)
- Promotion: File taxes for free if you have a simple tax return
- Devices: Desktop and mobile apps
TurboTax is one of the more established tax filing systems in Canada. Like CloudTax, it has a free version that provides more than enough for most Canadians.
TurboTax also has several premium versions, including TurboTax Standard, TurboTax Premier, and TurboTax Home & Business. The paid versions come with the ability to search for hundreds of more deductions, so it can be worth the minimal cost.
CloudTax and TurboTax have no income limit for their free versions, unlike some of their competitors. Canadians 25 and under can take advantage of free tax filing offered by TurboTax.
TurboTax also has both desktop and mobile versions of its app. One caveat with the free version of TurboTax: you will have to re-enter your information each year from scratch.
Also, the free TurboTax plan is for simple tax returns (like CloudTax Free). It excludes employment expenses, donations, medical expenses, investment income and expenses, rental property income and expenses, and self-employed income and expenses.
One area where CloudTax excels over TurboTax is its support. The free version of TurboTax comes with access to AnswerXchange, an online forum for users. The paid versions come with live support from TurboTax.
You can learn more about TurboTax in this detailed explainer.
CloudTax vs Wealthsimple Tax
Previously known as SimpleTax, the system was acquired by Wealthsimple in 2019 and renamed Wealthsimple Tax.
Like CloudTax, Wealthsimple Tax is also offered free but you will be asked to donate. The suggested donation is around $19.00, which aligns it with most of its paid competitors.
For “free” software, Wealthsimple Tax is more robust than CloudTax. It only has one version, which includes most of the premium features found in paid tiers for other apps.
These features include accepting self-employment, small business, and rental income, free support by chat, email, or phone, refund optimization, maximum refund guarantee, and even for filing cryptocurrency capital gains or losses from over 300 crypto exchanges or wallets.
Like CloudTax, Wealthsimple is NETFILE-approved and meets the CRA requirements for encryption and security. But for a free system that most Canadians will be able to use, both systems are excellent options for basic filings.
Related: Wealthsimple Tax complete guide.
Is CloudTax For You?
CloudTax meets the criteria for most Canadian taxpayers. It has a simple and intuitive interface and provides more than enough functionality for Canadians with basic tax scenarios.
FAQs
For basic Canadian tax filings that do not include self-employment or rental income, CloudTax is free. This means that for most Canadians, the free version of CloudTax will suffice.
Yes! CloudTax has the highest Google security and encryption features and meets the requirements of the CRA. You also get access to CloudTax’s customer support in both the free and paid versions.
If you meet the basic criteria for your income taxes in Canada, then using CloudTax is free. If you want additional features like audit protection or live tax advisors then you will need to pay for the premium version.
Using free tax filing software like CloudTax or Wealthsimple Tax is a simple and affordable way to file your taxes in Canada.
Related: H&R Block Review.
Just filed my 2022 taxes late lol. Super easy and quick.
CloudTax looks like it has lost its CRA certification for 2022. Do you know how to delete an account from their site. I was going to give them a try but now I won’t and I can’t find any information on how to delete an account. I was trying this based on your review so I was hoping you might have some insights.
@Joe: No, have you tried contacting them regarding this? I will also look into the certification…thanks for bringing that up.