Canada Tax Preparation Software

Canada Tax Preparation Software
By A Dawn

Fancy, Brand-Name and #1 Best-Selling Tax Software Programs Have Fancy Price Tags

If you have always wanted to file your own tax returns but are not sure which tax software programs to use, this article is for you. To file your own income tax returns, you need to use income tax software programs. I will review a few Canadian tax software programs and let you decide the best one for you. I will only discuss value tax software programs and will not discuss any fancy, brand name and #1 best-selling programs. Fancy, brand-name and #1 best-selling programs have fancy price tags, and I do not use or recommend them.

Types of Tax Software Programs

Tax Preparation Software comes in two different versions. One version is Windows version and the other version is Web application or online version. An Online version means you don’t have to download and install any applications on your computer, and you do everything online. Your tax information is saved on the web site’s server. Windows version means you download and install tax preparation software on your computer and all your information is kept on your computer. I do not use or recommend online version tax software, and I will discuss only Windows version tax preparation software here.

How Canada Revenue Agency Receives Your Return

Two ways. One is the traditional way. You print off a copy of your return and mail it to CRA. The other is via online. You transmit your tax return to CRA via online. This online filing process is called NETFILE. NETFILE allows you to file only your own tax return. You cannot transmit tax returns on behalf of others. Also, you need an access code to use NETFILE. To learn more about NETFILE and access code, click here. http://www.netfile.gc.ca/about-e.html Both Windows version and online version tax preparation software offer options to print off your tax return (and mail to CRA) or to transmit online using NETFILE. In order to be NETFILE eligible, a tax software program has to be NETFILE certified by CRA. To learn more about NETFILE-certified tax preparation software, follow this link – http://www.netfile.gc.ca/software-e.html. The tax preparation software programs I am discussing here (and most of the tax preparation software programs) are NETFILE certified by CRA.

New Limit of 20 Returns

CRA has announced that starting 2007, there will be a limit of 20 returns (paper or electronic) with each copy of NETFILE-certified software. Before 2007, you were able to produce unlimited numbers of returns with some of these value tax preparation software programs (such as GenuTax). To know more about this newly imposed limit, follow this link – http://www.netfile.gc.ca/software-e.html.

Canada Tax Software – A Dawn Journal’s Top Picks

After researching dozens of tax software programs, I have picked these tax software programs for this year. I am keeping it to a minimum so you don’t get inundated with too much information. Let’s begin.

TaxFreeway

* TaxFreeway is the only software allows user to use Interview and Form mode ssimultaneously. This gives user the maximum flexibility and helps user utilize the full power of software.

* Tax forms and slips are identical to actual CRA slips and forms.

* Both Windows version and MacVersions are available.

* It’s got RRSP planner, carry forward feature, spousal return integration and tax tips on demand.

* Price: $9.95

* Website: taxfreeway.ca

MyTaxexpress

* MyTaxexpress allows to share tax forms/slips in coupled return. Spouse can prepare their returns together as a coupled return to share tax data in the beginning or in the middle of preparation.

* It prints on CRA official forms for mail filing.

* View tax return summary page.

* Price: $6.99 (1 return) and $13.99 ( 1o returns)

* Website: mytaxexpress.com

GenuTax

* Multiyear tax software program. Buy only once and future annual updates are free.

* Price: $34.99

* Website: genutax.ca

Studiotax

* The only free tax software. yes, you heard it right. It is free. However, if you would like to make a contribution, Feel free to do so and Studiotax appreciates it.

* Price: Free

* Website: studiotax.com

Quick Fact

* Deadline for 2006 tax returns: Midnight, April 30, 2008

* Penalty for late filing: 5% of your 2007 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.

* EFILE : Don’t mix up EFILE with NETFILE. EFILE is a service that lets authorized and professional service providers send individual income tax return information to CRA by Internet. Tax professional cannot use NETFILE. They must use EFILE. Therefore, when you submit your own tax return = you use NETFILE and when tax professionals submits your tax return = they use EFILE.

Quick Fact Source: Canada Revenue Agency

Author’s Bio

A Dawn is a City University of New York Economics graduate. The former Financial Advisor now works as a Data Integrity Analyst for a major Canadian wealth management corporation. He created Canada’s Personal Finance Website ( http://www.adawn.net ) and Canada’s Favourite Journal ( http://www.adawnjournal.com ) to make the world of personal finance easy and accessible for everyone. His first book Invest Now is expected to be published in early 2008. He makes his home in the world class city of Toronto.

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