Danielle Kubes is a trained journalist and investor who has written about personal finance for the past six years. Her writing has been published in The Globe and Mail, National Post, MoneySense, Vice and RateHub.ca. Danielle writes about investing and personal finance for Wealthsimple. She has a Bachelor of Humanities from Carleton University and a Master of Journalism from Ryerson University.
Taxes can be intimidating, nerve-wracking and downright confusing. New tax credits come out every year, and we’re always afraid of missing out. We forget our RRSP deduction limits and accidentally throw out medical expense receipts. That’s why the government encourages everyone to file their taxes online.
Unless your taxes are extremely complicated most Canadians can probably get away with using a tax-filing software. It’s only if you have complex taxes that include a trust or large business or perhaps a network of rental properties that you’ll need professional help to develop tax strategies.
It’s just easier for everyone. You also get your refund much faster, in as little as two weeks if the CRA has your direct deposit information.Wealthsimple Tax is a simple way to file your taxes. File your return with confidence it’s done right, and pay what you want—there’s no catch.
There are plenty of tax programs to guide you through the process. One of these online tax softwares is called uFile, which has been around for about two decades and services about 1 million Canadian annually.
What is uFile?
UFile is a web-based application. You can just go to uFile’s website, sign up, and begin the process.
It auto-fills all your T slips from the CRA (yes the CRA already has your T-slips). It also goes through every tax credit to see if you’re eligible. You simply fill out the correct amounts and keep your receipts in case the CRA ever needs to see them—you don’t need to send in any receipts or show proof when you file.
It also carries forward your information year to year, which is especially helpful if you have a small business and have capital expenses.
At the end it automates all your income, deductions, and credits and tells you how much you owe or will be refunded. Then you simply press a few buttons to send it into the CRA. Mission completed!
UFile has a program for any personal tax situation—whether you’re employed or a sole proprietor or have rental properties or if you’re a retiree.
You don’t have to finish uFile preparation at once, you can log in and out and complete it at your leisure. You don’t even need to be exceptionally internet savvy. If you can fill out survey questions online you’re probably good to go. If you can use Facebook, you can use an online tax preparation software like uFile.
It essentially replaces an accountant for a fraction of the price. If you have any questions you can call them or check out their Help section.
Is uFile Free?
UFile is free for Canadian households making under $20,000 a year. For those making over that amount the fee is quite affordable:
First family member who uses uFile:
$19.95 plus HST
Second family member who uses uFile (like a spouse):
$12 plus HST
Additional family members (kids):
$6 plus HST
Plus, you only pay once you’re done using uFile. If you find that it’s too complicated, and you don’t like the platform then you can go to an accountant or a rival tax software.
UFile versus other tax filing software
Of course, uFile isn’t the only name in the game. TurboTax and the newly launched Wealthsimple Tax are both options. And both are free. TurboTax makes it seem like you have to pay but you always have the option of choosing their “free” option. It’s almost identical to their paid version (which is still cheap at $20 for the standard version) with just less guidance. It’s easy and intuitive to use either way. Even if you’re a sole proprietor you still have the option of using the free version. The paid version for the sole proprietor version is $44.99
Wealthsimple Tax, on the other hand, is always free. It’s a pay-what-you-can service, and you don’t need to find a workaround to save money. Plus, it’s an extremely clean, user-friendly interface. Their calculator makes it easy to estimate how much tax you’ll pay in advance.
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