It’s that season of the year when you are required to file your tax return – aka tax season!
Whether you are looking forward to tax time or not may depend on if you expect to get a refund or if you will owe the government money. (Hint: Those expecting a significant tax refund are often ecstatic when tax season comes around). 🙂
Tax filing via electronic channels has become more simplified in the last few years, especially with recent integration opportunities available through the Canada Revenue Agency (CRA) and the increasing sophistication of online tax software.
Of the nearly 30 million tax returns filed last year, 91% were transmitted electronically; paper returns accounted for the rest.
Depending on your circumstances this year, you may be able to file your returns yourself using paid tax software, free of charge at a tax preparation clinic, or you may choose to hire an accountant.
For those intending to use the DIY option, this is where TurboTax comes into play!
TurboTax is Canada’s #1 best-selling and most popular income tax software and has been used by millions of Canadians for over 20 years. The TurboTax software is owned and marketed by Intuit Canada.
Why Use TurboTax?
If you are wondering about your choice of tax software for processing your tax return this year, here are some reasons to consider choosing TurboTax:
1. Guaranteed Maximum Refund and Accuracy
Individuals who prepare their own tax returns often fear that they may be missing out on eligible deductions and tax credits, ultimately cheating themselves out of refunds.
Not surprising, as nobody wants to give the government more of their hard-earned money if they don’t have to!
TurboTax guarantees that when you use their tax software, you’ll get the maximum refund possible. They also guarantee 100% accuracy and that there will be no errors.
If there are any errors due to using their software and they lead to CRA penalties, TurboTax will reimburse the penalty plus interest.
The availability of multiple forms of support is one area that makes TurboTax stand out. Support available to tax filers includes:
- An online community where you can ask and receive answers from experts and other customers.
- Phone support
- Video tutorials
- TurboTax SmartlookTM: an online, on-demand service that connects Canadian tax filers to live, personalized tax advice from qualified tax experts.
While the level of support you can access is somewhat dependent on the edition of TurboTax you are using (or purchasing), there is always some level of support available, even for the free version!
About 50% of Canadians do not feel comfortable filing their taxes. A few years ago, I was not either. Have you looked at those paper tax forms recently? If you are not an accountant or are not used to figuring out numbers, manually filing a complicated tax return is simply not your idea of an entertaining evening or weekend.
The TurboTax software makes this tax filing a breeze – it takes you through the process step-by-step, showing you only what’s required for your own specific income, benefits, and tax situation.
4. NetFile Certified
NETFILE is an electronic tax-filing service that allows you to send your tax return directly to the CRA through the internet. TurboTax is one of the tax software products certified by the CRA to use the NETFILE system.
By submitting your return directly, you can get your refund much faster – in my case, I received it in 10 days. You also get immediate confirmation that your tax return was transmitted successfully.
Filing via a paper return means waiting up to 8 weeks for your refund.
5. CRA Auto-Fill My Return
Individuals with a CRA My Account can connect their TurboTax account to CRA to automatically populate their tax information already on file. TurboTax makes the auto-fill my return very easy to accomplish, potentially saving you lots of time.
Related: How To open a CRA MyAccount
6. Support for Multiple Platforms and Devices
TurboTax is available via the internet (web-based) and can also be downloaded and installed on your personal computer. Both online and download options offer varying benefits and features depending on your chosen version.
So, you can download and install it on your Windows or Mac PC, or if you prefer, choose one of the many online versions and access it on the web anywhere using your PC, tablet, or phone.
7. TurboTax Free
There are online and download versions of TurboTax that you can access free of charge.
With TurboTax Free, you can still use the Auto-Fill my return through CRA, ask questions on AnswerXChange, and expect 100% accuracy.
However, you will not have access to some premium features, including the ability to transfer your previous tax information and store your return online. It may also not be suitable for more complicated tax situations.
8. Other Resources
There is an abundance of other resources on the TurboTax website, including a blog, income tax and refund calculators for all provinces and territories, an expense claim calculator for self-employed individuals, tax tips, and more. These are all freely accessible.
Choosing Your TurboTax
Generally speaking, you can choose between the online (web-based) and the PC-installed versions. There are multiple tiers of features available depending on what you choose/pay for. As the features/benefits increase, so does the cost.
If you are filing a single return and your tax situation is relatively simple, the Free or Standard online version (15% discount link) is probably all you need.
The Premier version (15% discount link) targets those looking for additional guidance on investment income and expenses or who have a rental property they have to account for.
If you are filing more complicated returns, including those with freelance income/home-based business, you can look at their Self-Employed package (15% discount link).
For those who would rather have someone else take care of their tax filing, the TurboTax Assist & Review or Full Service may be worth looking at.
If you would rather download the software to your desktop instead of using the online version, desktop download versions are also available.
Is TurboTax Safe?
TurboTax is NETFILE-approved, which means they can securely transmit your tax information to the Canada Revenue Agency.
The security they employ for your account is also top-notch. TurboTax uses multi-factor authentication and data encryption to ensure that your private data is kept safe.
2023 Tax Filing Updates in Canada
For your 2022 tax return, the tax deadline is on May 1, 2023. If you are self-employed, your tax filing deadline is on June 15, 2023.
2022 Tax Filing Updates in Canada
For your 2021 tax return, the tax deadline is on May 2, 2022. If you are self-employed, your tax filing deadline is on June 15, 2022.
Below is a summary of tax changes to watch out for in Canada in 2022.
Those who received the Canada Recovery Benefit (CRB), Canada Recovery Caregiving Benefit (CRCB), and Canada Recovery Sickness Benefit (CRSB) can expect to receive a T4 from the CRA.
The CPP contribution rate has increased to 5.70% in 2022, or 11.40% if you are self-employed.
The RRSP contribution limit for 2022 is 18% of your earned income in 2021 or a maximum of $29,210.
The TFSA contribution limit for 2022 is $6,000 (same as in 2021).
2020 Tax Filing Updates in Canada
Tax updates to watch for when you file your 2020 tax return and for the 2021 tax year include:
If you worked from home due to COVID-19, you may be eligible to claim up to $400 for work-space-in-the-home expenses, office supplies, and more. You can claim $2 for each day you worked from home in 2020, up to a maximum of $400 (or 200 workdays).
The CPP contribution rate for workers increases to 5.45% in 2021, or 10.90% when combined with the employer rate.
The CRA will send you a T4A if you have received the CERB or CESB benefits so you can record the payments when you file your tax return.
The maximum annual RRSP contribution limit is 18% of your income up to a maximum of $27,830.
2019 Tax Filing Updates in Canada
Some of the new tax changes that come into effect in 2019 and which affect your tax filing in future years include:
The tax filing deadline has been pushed to June 1, 2020 (from April 30, 2020). Canadians can also defer their income tax payments for the 2019 tax year until after August 31, 2020.
The small business tax rate has been reduced from 10% to 9%. Also, note that there is now a lower limit to the passive income small business owners can keep before higher corporate tax rates kick in.
Low-income workers will receive an increase in Canada Workers Benefits (a refundable tax benefit formerly known as the Working Income Tax Benefit).
New carbon taxes have been introduced, and fuel costs are expected to go up by April 2019. Direct tax rebates will be available to residents of provinces that do not yet have an agreement with the federal government (Manitoba, Ontario, New Brunswick, and Saskatchewan).
The Enhanced CPP goes into effect with rates increasing to 5.1%. The maximum pensionable earnings for 2019 is $57,400. While CPP payments have increased, EI premiums will drop by 4 cents for every $100 of insurable earnings (i.e. from $1.66 to $1.62 per $100).
Ease of Use
TurboTax is the #1 best-selling income tax software in Canada, and has been used by millions of Canadians for over 20 years. Depending on your tax situation, you have the choice of a free version, as well as several paid versions (online and PC).