Canada Income Tax Software – Windows Version

This year, I noticed a few new tax software programs, and added a few of them after going through all of these new programs. This is what my message is: try to pick a free tax software program. If the free one does not meet your requirements, get one of the least expensive ones that fits your needs.

In Canada, tax software programs are required to be NETFILE-certified by the Canada Revenue Agency (CRA). The software programs I mentioned here are all NETFILE-certified. If you would like to see all NETFILE-certified tax software programs, visit CRA NETFILE-certified Tax Software Page.

Canada Tax Software – A Dawn Journal Top Picks

As per CRA requirement, all these tax software programs have a limitation of maximum 20 returns.

UDOTAXES

o Supports business and self-employed tax return.

o Real CRA tax form interface

o Price: Free

Studio Tax

o Supports simple to complex tax scenarios.

o Supports linked returns.

o Price: Free

MyTaxExpress

o Print real CRA tax form with 2D barcode.

o Coupled tax return optimized.

o Price: $5.99 for 1 return and $13.99 for 10 returns.

FutureTax

o Charitable Donation, Split Pension, Medical Expenses and Dependants optimized.

o Save as PDF file with 2D barcode or print out.

o Price: $6.99 for 1 return and $9.99 for 10 returns.

TaxFreeWay

o TaxFreeway is the only software allows user to use Interview and Form mode simultaneously.

o RRSP planner, carry forward feature, spousal return integration, and tax tips on demand

o Price: $9.95 for 20 returns

GenuTax

o Multiyear tax software program.

o Upgrade in the future for a reasonable fee.

o Price: $39.99

H&R Block At Home

o Up to 16 returns

o Free audit assistance and free Tax Tips book.

o Price: $34.99

Quick Fact

o Deadline for 2009 Tax Returns: April 30, 2011

o Penalty for late filing: 5% of your 2010 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. For more info, visit Interest and the late-filing penalty

o 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 submit your tax return = they use EFILE.

Quick Fact Source: Canada Revenue Agency

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Important Tax Dates For 2010 Tax Year

2010 Tax Year RRSP Contribution Deadline = March 1, 2011

2010 Personal Income Tax Return Filing Due Date = April 30, 2011

If you have a balance owing, you have to pay it on or before April 30, 2011

2010 Self-Employed Tax Return Filing Due Date = June 15, 2011

If you have a balance owing, you have to pay it on or before April 30, 2011

Last Day To File Your 2010 Tax Return Electronically Using NETFILE = September 30, 2011

Last Day To File Your 2009 Tax Return Electronically Using EFILE = September 30, 2011

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 submit your tax return = they use EFILE.

Source: Canada Revenue Agency

Related Articles:

A Dawn Journal Tax Archive

Tax Credit and Tax Deduction

Home Renovation Tax Credit (HRTC)

How To Use Canada Revenue Agency Website

Canada Income Tax Software – Windows Version

If this is your first time here, You may want to subscribe to ADJ via RSS. If you are reading this page via RSS reader, you can visit the main page here -Canada’s Personal Finance Blog

Canada loves A Dawn Journal’s tax preparation software review, and it’s no wonder Canada Tax Preparation Software 2008 article has become the all-time most popular post (look at the Most Popular Posts Widget on the top right, as of Feb 1, 2010). Why is this post so popular? It’s very simple, short, and to the point. Life is complicated enough; you don’t want to make it even more complicated by reading tax software review articles that go beyond comprehension of readers who do not hold an MBA.

My message is simple and clear: you do not need to spend money on these software programs when you can have it for free or for a small reasonable price. Don’t buy those fancy, brand name software programs at hefty prices; it’s unnecessary and a waste. I never recommend or feature pricy software programs on A Dawn Journal, and I do not put their direct ads on my site either (ads you see here, such as ads by Google or other ad networks, I have no control over). Recently, I was approached by a brand name tax software company to place their link inside this article. I declined the request right away. If I am not recommending their products, there is no way I will place their links inside my article. It’s a big NO NO.

In Canada, tax software programs are required to be NETFILE-certified by the Canada Revenue Agency (CRA). The software programs I mentioned here are all NETFILE-certified. If you would like to see all NETFILE-certified tax software programs, visit CRA NETFILE-certified Tax Software Page.

Canada Tax Software – A Dawn Journal Top Picks

As per CRA requirement, all these tax software programs have a limitation of maximum 20 returns.

MyTaxExpress

• Coupled tax return optimized.
• Print real CRA tax form with 2D barcode.
• Real CRA tax forms interface gives you the ability to input T3, T4, T5 and other tax slips into the tax return.
• Price: $6.99 = 1 Return and $13.99 = 10 Returns. If total income is less than $25,000, it will not be counted from the total returns allowed.

TaxFreeWay

• TaxFreeway is the only software allows user to use Interview and Form mode simultaneously.
• Able to automatically split T3/T5 slips and stock/mutual fund transactions for spousal returns
• Both Windows version and Mac Version are available. You can share, transfer and carry forward data between Windows and Mac.
• It’s got RRSP planner, carry forward feature, spousal return integration, and tax tips on demand.
• Price: $9.95

Studio Tax

• The only, totally free Canadian tax software program.
• Supports simple to complex tax scenarios.
• Feel free to support them by donating a few dollars.
• Price: Free

GenuTax

• Multiyear tax software program. Buy only once and future annual updates are free.
• Easy Interview Process makes tax preparation a snap. Answer questions related to your topics to complete your tax return.
• Enter tax data on screen that look like your tax slips.
• Price: $39.99

NB - Only GenuTax has increased their price from $34.99 (last year) to $39.99. TaxFreeWay and MyTaxExpress prices remain the same as last year.

Quick Fact

• Deadline for 2009 Tax Returns: April 30, 2010
• Penalty for late filing: 5% of your 2009 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. For more info, visit Interest and the late-filing penalty
• 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 submit your tax return = they use EFILE.

Quick Fact Source: Canada Revenue Agency

Important Tax Dates For 2009 Tax Year

Tax Tips Canada 2009

2009 Tax Year RRSP Contribution Deadline = March 1, 2009

2009 Personal Income Tax Return Filing Due Date = April 30, 2010

If you have a balance owing, you have to pay it on or before April 30, 2010

2009 Self-Employed Tax Return Filing Due Date = June 15, 2010

If you have a balance owing, you have to pay it on or before April 30, 2010

Last Day To File Your 2009 Tax Return Electronically Using NETFILE = September 30, 2010

Last Day To File Your 2009 Tax Return Electronically Using EFILE = September 30, 2010

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 submit your tax return = they use EFILE.

Source: Canada Revenue Agency

Related Articles:

A Dawn Journal Tax Archive

Tax Credit and Tax Deduction

Home Renovation Tax Credit (HRTC)

How To Use Canada Revenue Agency Website

Tax Tips For Canadians

Today, I am going to share a few tax tips for 2009 tax year. Please share this post with your Canadian friends. Forward this link via email or social sites. Happy tax season.

First-Time Home Buyer’s Tax Credit (HBTC) – If you are a first time home buyer and have acquired your home after January 27, 2009, you are eligible to receive a non-refundable HBTC tax credit. This $5000 generates a maximum $750 tax credit. Each family receives one tax credit; if you are married or living common-law, you can claim only one tax credit.

Home Buyers Plan (HBP) – First time home buyers can now withdraw up to $25,000 from their RRSP. HBP limit was $20,000 in 2008.

Home Renovation Tax credit (HRTC) – This is a non-refundable tax credit that allows you to recover a portion of your eligible renovation expenses as tax credits from more than $1,000 but less than $10,000. The maximum tax credit can be up to $1,350. HRTC can be claimed on your 2009 tax return and applies to eligible works performed or goods acquired from January 27, 2009 to February 1, 2010 under an agreement made after January 27, 2009.

Tax Free Savings Account (TFSA) – Make a contribution to your TFSA by December 31, 2009 for 2009 tax year. If you make withdrawals in 2009 from your TFSA, it will be added back to contribution room in future years. Also, any unused contribution room will be carried forward to future years.

RRSP/RRIF Losses After Death – If an RRSP/RRIF annuitant dies, the fair market value of a RRIF or RRSP considered income and added on the final tax return unless tax-free rollover provisions are used such as a spouse or minor dependent is getting a tax deferred rollover. Federal Government passed a legislation earlier 2009 to address market declines. This legislation allows (January 2009 and forward) the post-death market value decrease in an RRSP or RRIF, before paying out to the beneficiary, can be carried back and applied against annuitant’s final RRSP/RRIF income that was reported. I suggest that you consult a Tax Specialist on this matter as it can be complicated.

Are You Turning 71 in 2009? – Don’t forget to convert your RRSP to a RRIF or an annuity by December.

Do You Have Kids Turning 18 This Year? – It’s always a good idea to file a 2009 personal tax return even if they have no income. Filing a tax return will start generating contribution room for RRSP, TFSA records on CRA Letter of Assessment, and potentially the GST/HST tax credit.

There will be more tax articles on A Dawn Journal. Don’t forget to bookmark this site and visit often.

Related Articles:

A Dawn Journal Tax Archive

Tax Credit and Tax Deduction

Home Renovation Tax Credit (HRTC)

How To Use Canada Revenue Agency Website

Canada Revenue Agency (CRA) Website provides tax related information, publications, guides, forms, and other services that educate general public and promote compliance with Canada’s Tax system. CRA website has a vast amount of information, and it can be overwhelming. Here is a video clip showing how to easily navigate throughout CRA website and find tax information you need quickly and efficiently. Presented by  Canada’s Personal Finance Website – A Dawn Journal.

A Dawn Journal Tax Archive

Tax Deduction or Tax Credit – which one is better? The answer can be a tricky one and it may not as simple as it looks. In general, tax deduction seems to favour the higher income group, but I would suggest you to consult a tax professional. For more Info,
please visit – Canada Revenue Website.

What is The  Home renovation Tax Credit?

The HRTC is a non-refundable tax credit that allows you to recover a portion of your eligible renovation expenses as tax credits.

Who can claim or eligible for the HRTC?

The HRTC is based on family. Each family can claim one HRTC tax credit. If more than one family owns eligible dwelling, each family can claim its own – up to $1,350 each.

How is the Home Renovation Tax Credit calculated?

The HRTC is a 15% non-refundable tax credit that can be claimed on eligible expenditures more than $1,000 but less than $10,000. The maximum tax credit will be $1,350

How long is the eligibility period?

Eligible works performed or goods acquired from January 27, 2009 to February 1, 2010 under an agreement made after January 27, 2009.

What are eligible dwellings?

Dwellings that are principle residence, such as home, condo, cottage etc used by you, your spouse, common-law partner, and children.

What are some examples of eligible expenses?

Renovating a bathroom, basement, or kitchen.
Installing a new fireplace, windows, or water heater
Building a garage, deck, or fence

What are some examples of non-eligible expenses?

Buying Furniture, appliances, electronics, etc.
Carpet cleaning, house cleaning, etc.
Financing costs

For more information, please visit www.cra.gc.ca/hrtc or call 1-877-959-1-CRA.

Non-Refundable Tax Credit: A non-refundable credit is a tax credit that can reduce your tax liability to zero, but can’t be used to get a refund.

Some hand-picked related and non-related posts:

Do Canadians Pay More?

Canadian House Sales To Rise

Will Canadians Get A Raise In 2010?

Canada: The Genuine Alternative To America

Canada Moves Up To Ninth Place In Global Competitive Ranking

Canada Income Tax Software – Windows Version

If this is your first time here, You may want to subscribe to ADJ via RSS. If you are reading this page via RSS reader, you can visit the main page here -Canada’s Personal Finance Blog

Avoid Brand Name, Fancy, and Best-Selling Tax Software Programs

Read Canada Tax Preparation Software 2008 Web Version Review Here

I don’t see any point in paying high prices for tax software programs when you can do it for free or for very little cost. This year, I will look at some tax software programs which are free, or not expensive, but will do the job right. On ADJ, I will review Windows version programs; and on Canada Personal Finance Website, I will review online Web version programs. Windows version means you download and install tax software programs on your computer and your information is kept on your computer. Online version lets you do everything online – nothing to install. Some readers may not want to use online programs for security reasons. I personally use Windows version

Canada Tax Software – A Dawn Journal Top Picks

Studio Tax

• Why pay for tax software when you can do it for free?
• Supports simple to complex tax scenarios.
• Feel free to support them by donating a few dollars.
• Price: Free

TaxFreeWay

• TaxFreeway is the only software allows user to use Interview and Form mode simultaneously.
• Tax slips and forms are identical to actual CRA’s.
• Both Windows version and Mac Version are available. You can share, transfer and carry forward data between Windows and Mac.
• It’s got RRSP planner, carry forward feature, spousal return integration, and tax tips on demand.
• Price: $9.95

MyTaxExpress

• MyTaxExpress allows sharing 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.
• Generates CRA’s official .pdf format tax forms with tax return’s data and printable tax forms with 2D barcode.
• Real CRA tax forms interface gives you the ability to input T3, T4, T5 and other tax slips into the tax return.
• Price: $6.99 = 1 Return and $13.99 = 10 Returns

GenuTax

• Multiyear tax software program. Buy only once and future annual updates are free.
• Easy Interview Process makes tax preparation a snap. Answer questions related to your topics to complete your tax return.
• Price: $34.99

Quick Fact

• Deadline for 2008 Tax Returns: April 30, 2009
• Penalty for late filing: 5% of your 2008 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. For more info, visit Interest and the late-filing penalty
• 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 submit your tax return = they use EFILE.

Quick Fact Source: Canada Revenue Agency

Manufacturers’ Perspective

I asked tax software manufacturers above to present their perspectives for ADJ readers (why should customers buy their products?). I got only two replies back. Here is what they had to say:

MyTaxExpress

We think our software is better from the following aspects:

1) compared to online tax service, myTaxExpress is more secure.
If you have CRA yearly netfile/efile statistics, you will
find that returns prepared by standalone application is probably
4-times more than those prepared by web application.

2) myTaxExpress use a work flow from tax slips to tax forms.
We avoid using interview mode, because interview method becomes
tedious when it needs to cover all tax situation.
Another thing Netfile customer will see in other software is
that at the end of tax return preparation, he/she will asked to
fill in some numbered supporting fields like 5522, 5529. Customer
would never know what that is. myTaxExpress doesn’t ask for it, since
its natural tax return logic hides these technical questions.

3) myTaxExpress prints on official CRA tax forms, making it highly
compliant to CRA standard. Most other tax software print their
own, and its format is not as professional as myTaxExpress.

4) myTaxExpress support CRA 2D barcode print, not all standalone tax
software do that.

5) myTaxExpress customer service is fast and easy. We response fast,
that’s first. From this year, we packaged remote helpdesk
application. Through remote helpdesk app and when customer has
problem, we can see customer’s computer screen and help them solve
the problem directly.

6) myTaxExpress supports coupled tax return, and many other neat
features. myTaxExpress also has both Netfile and Efile software.
We even have a copycat application from rival – futuretax (not
only it copies our software, but also our website).

GenuTax

In our opinion, GenuTax software’s three best features are as follows:

1) Once you purchase a copy of GenuTax Standard for $34.99 plus applicable sales taxes, tax updates for future years are provided at no extra cost.

2) You can prepare up to 20 tax returns for each year with GenuTax. There are no income restrictions, and no extra charges per tax return.

3) GenuTax has a simple, easy-to-understand interview that takes you step-by-step through your tax situation for the year, assisting you in claiming every tax deduction and credit that you are entitled to.

If you have not already done so, I encourage you to try out GenuTax by downloading the no-cost 30-day Trial Version of the software.

http://www.genutax.ca/Trial.aspx

Some hand-picked posts you may want to read:

Web Version Canada Tax Preparation Software Review
Important Tax Dates For 2009
30 Free Canadian Financial Tools and Calculators
13 Free Canadian Personal Finance eBooks

Important Tax Dates For 2009

If this is your first time here, You may want to subscribe to ADJ via RSS. If you are reading this page via RSS reader, you can visit the main page here – Canada’s Personal Finance Blog.

Canada 2009 Tax Preparation Software Review – Coming Soon

2008 Tax Year RRSP Contribution Deadline = March 2, 2009

2008 Personal Income Tax Return Filing Due Date = April 30, 2009

If you have a balance owing, you have to pay it on or before April 30, 2009

2008 Self-Employed Tax Return Filing Due Date = June 15, 2009

If you have a balance owing, you have to pay it on or before April 30, 2009

Last Day To File Your 2008 Tax Return Electronically Using NETFILE = September 30, 2009

Last Day To File Your 2008 Tax Return Electronically Using EFILE = September 30, 2009

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 submit your tax return = they use EFILE.

Source: Canada Revenue Agency