The 3 Best Free Tax Softwares in Canada

For most people, doing their taxes is a thankless task. Fortunately, there are free tax software programs that make it easy to calculate and file your taxes online. We recommend that you choose a software that is easy to use, designed for the Canadian tax system and, ideally, certified for NETFILE.

1. TurboTax Online – Best For Simple Tax Returns

TurboTax is one of the most well known free tax software in Canada. It enables taxpayers with one or more employment income slips or unemployment income to file their federal and provincial income tax returns for free. It offers specific products for a range of situations: self-employed workers, investors, etc. Not everyone is eligible for the free version, however.

The free package covers employment income, employment insurance, Registered Retirement Savings Plan (RRSP) contributions and child care expenses, among others, but it excludes several incomes and deductions. Exclusions include donations, medical expenses and investment income and expenses. Visit the TurboTax website to find out if the free version is right for you.

What we liked most about TurboTax was its auto-fill feature, which facilitates data entry. It also allows users to use the ReTRANSmit function to make changes to their application. That said, many other programs do the same.

2. H&R Block Online – Best For Canadians 25 Years Old and Under

H&R Block is a well-known name in the industry and has been offering tax-related services for more than five decades. It has hundreds of offices throughout the country where you can choose to drop off your documents or request in-person services. Additionally, you can use their free online tax filing software as well.

The free version is quite powerful and allows users to handle all types of tax scenarios. You can enter employment income, scholarships, claim credits for tuition fees, for example, and the software optimizes your tax return.

If you’re 25 years old or under (as of December 31 of the tax year), this is probably the best software for you, since you get free access to the paid packages! These include expenses related to rental property income, capital gains and losses, foreign income, medical expenses, employment expenses and dependents on your return. If you’re self-employed, H&R Block has a kit specifically designed for your needs.

3. Wealthsimple – Best For Complex Returns

Wealthsimple is known for its investment platform, but the company also offers free tax filing with various features. You’ll be able to handle some complex scenarios, including investment income and self-employment, for free, which isn’t possible with most other software. In fact, the platform allows unlimited access to all forms.

I’ve personally used this software on several occasions, and it works quite well. Once in a while, you may encounter a few glitches, such as forgetting some provincial contributions, but Wealthsimple improves every year. It works well if you work from home or are self-employed.

Perfect for first-time users, it allows you to view your entire return on a single page, with the ability to import previous documents, and offers automatic optimization of your return. If you’re satisfied, you can make a donation at the end of the process, but there’s no obligation to pay.

This article is the shortened version of an article originally published on Hardbacon.ca by Maude Gauthier under the title "The 5 Best Free Canadian Tax Softwares".