Ask a Money Coach: Which tax software would you recommend?

Posted on: February 22, 2017

Tax Time

 

Around this time of year our Coaches are often asked which tax software they would recommend to individuals who would like to file their own taxes online.  Here is a round-up of responses on three of the most popular options: Turbo Tax, Studio Tax and Ufile.

It is also important to note that if you are filing online you must use a program that is recognized for use on Netfile by the Canada Revenue Agency (CRA). For a list of all the recognized programs visit the CRA website

Turbo Tax

Previously known as Quick Tax, Turbo Tax offers several different levels and is available for Mac or PC.

The Free Version: Exclusively online and recommended for people with extremely simple returns, (no children or significant assets).

The Standard Version: For folks with very straightforward finances, but is detailed enough to cover pensions, children and RRSPs.

The Premier Version: offers everything the standard version does but can also handle more complicated income from investments or rental properties.

The Home and Business Version: A great option for the home business owner, consultants and contractors.

All versions (except the Free version) are available as downloads or online. The downloadable versions offer the ability to handle multiple returns (8 for standard, 12 for Premier or Home and Business). The online versions are roughly half the price but only accommodate one return.

Features included in all the purchased versions: Turbo Tax EasyStep (uses guided questions to navigate you through the process), free product support by phone, email or chat.

Noel D'Souza Money Coach in Toronto ON“I’ve used Turbo Tax (standard) for several years. Pretty easy to use and it has good help from their forums/community if you have a tax or software question.”  

– Money Coach Noel D’Souza P.Eng, CFP® 

 

 

Christine White Money Coach in Toronto East ONI agree with Noel that the forums/community are good. There is also some online technical tax support, but I believe that is only available until the April 30th tax deadline.”  

– Money Coach Christine White P. Eng

 

 

Karen Richardson Money Coach in Kenora ON“I use Turbo Tax as well and really like it. The EasyStep feature walks you through your return and is especially beneficial for first time users.”  

– Money Coach Karen Richardson

 

 

StudioTax

The first thing to know about StudioTax is that it’s free for all personal users. Starting this year it is available for Mac as well as PC. It has only one, full featured version and will handle up to 20 returns (which is the limit set by the CRA). StudioTax is the brainchild of a group of software developers in Ottawa who offer the program for free but welcome donations.

Tom Feigs Money Coach in Calgary AB“I switched to StudioTax last year. I was attracted by the low cost – it’s free! StudioTax was approved by CRA for Netfile a few years back. It’s easy to navigate around as the forms look as if you are paper filing the CRA T1 General. It includes a quick entry wizard and helps you validate your return to be sure it’s optimized and error free. I am using StudioTax for 2013.”  

  – Money Coach Tom Feigs CFP, CET

 

Melanie Buffel Money Coach in Vancouver BC“I use StudioTax too. It’s free but you can donate to it if you choose to. I start with the Quick Entry Wizard and then review each form to be sure I didn’t miss any credits etc. They have a PC and MAC version and now have some You Tube tutorials for those wanting a bit more support. The only thing I remember Turbo Tax having that this does not, is an RRSP optimizer with a visual way to see how your refund changes when you deposit more into an RRSP.”

– Money Coach Melanie Buffel BA Psych, MBA Candidate

 

Ufile

Ufile online is available for Mac and PC but the downloadable version is PC only. The downloadable version costs less than Turbo Tax but only allows for 4 returns, and depending on your income and circumstances it can be free. It has a questionnaire that once completed fills in the necessary spots in the tax return and easily carries forward the previous years information. There is only one version for personal use, which the company says will handle any tax return no matter how complex.

Leslie Gardner Money Coach in Kamloops BC“I use Ufile, it’s less expensive, but I don’t think it’s for beginners, you need to know something about taxes in order not to miss credits.”

– Money Coach Leslie Gardner

 

 

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12 Responses to Ask a Money Coach: Which tax software would you recommend?

  1. I used Ufile for at least the last 10 years, but the last 2 years the format has changed and it is a lot less user friendly to the point that I am thinking of changing tax software. Has Ufile been bought by another company..? There is a big difference.

  2. Hi Bob;
    In answer to your question, yes Ufile was first developed by Dr Tax Software Inc in 2000 and that company was bought out by Thompson Reuters in 2012. The changes to their software came in 2015 and I agree the changes were not as user friendly. I have myself continued to use Ufile, there was a “learning curve” with this new software update for sure. With any tax software you will want to go over each of the questions carefully and if unsure then Ufile does has a help desk and I recommend going over the tutorials as well. With all tax preparing software it’s a good idea to be somewhat familiar with how the Canadian tax system works so if your tax software is stating a large refund or amount owing and you have no good reason as to why, then you may need to go back and review your inputs to ensure you haven’t missed something. I used to use Quicktax years ago, but found the cost was increasing rapidly each year, that’s when I switched to Ufile. I hope that helps.

  3. There appears to be a significant difference between Turbotax ( 2016 ) and Ufile (2016) …..specifically when pension splitting ( RRIF) with my spouse…. to receive the optimal tax refund , turbotax recommends $595 …while Ufile allows my full amount (50% = $4787 )….why the difference ??….. all data input was the same for both programs…. any idea “why” the difference ?…this results in an overall difference of $175 (refund total for the 2 of us ) …this is significant .
    thank you

    • Rick in BC says:

      Hi Ian, The answer probably lies in the information you didn’t share. Which package got you the better refund. IE: If Turbo tax recommended only splitting $595 of your pension with your spouse and it gave you the best return +$175 then this would appear to be the optimal split. If Ufile’s recommended max 50% split got you the +$175 then this is the most optimal. In the end the algorithms are designed with rules to try and reduce your taxes. This is done in one of two ways, reducing your income or increasing your tax credits. It would be helpful to know which package got you the best refund as it will help other understand who’s software worked best for you. in your case both answers appear legal so I would choose the higher refund unless your primary concern is having a Lower Taxable income to qualify for some grants or tax credits (IE: BC MSP Reductions for low income). Enjoy the refund and buy something that makes you happy.

  4. Hi Ian;
    Revenue Canada allows you to split up to 1/2 of eligible pension income with your spouse. Each software program has an optimizer, Ufile call theirs MaxBack, Turbo Tax is I believe called “optimizer”. These tools are calculating what works best in your situation. With similar inputs though, why the difference? That’s a great question, I would suggest you contact UFile support chat line at: http://www.ufile.ca/help/ask-ufile to see if they may be able to answer your question. They may want you to submit your file to them for review, please let us know what the answer was so that we may inform others.

  5. After just having gone a round with CRA about unreported income, I am sorely disappointed with StudioTax (ST).
    The problem arose because my wife and I shared our investment income and I used the wizard to split the T5 chits for the most favorable tax refund. ST did indeed juggle the numbers, but it did not attribute the income to either of us. This meant that CRA eventually realized this and came after us. We were able to resolve the issue by paying a penalty on top of the extra tax and being told by CRA that no matter which tax package we use, we would still have to _review all figure manually_, which pretty well defeats the purpose of the software in any case.
    In going back to Studiiotax to see what is going on, I found a button on the T5 slips page “Copy the current T slip amount to the spouse return”
    My beef and question: if ST is smart enough to juggle the numbers, once I accepts the split, ST at the very least should ask me to transfer the slips as needed, or better yet, simply advise me the it did so for me and possibly ask me to confirm.
    The penalty cost us far more than we would have paid for any non-free tax package.
    Between the hassle and the penalty, ST is no longer an option for us :-(

    • I wonder if ST has a problem with splitting pension income. I’ve never used it and am considering it but if there’s a problem like yours then it’s a no go for sure!

  6. I have been using Ufile for several years without problems, but this year I find Ufile 2006 cannot run on my
    Dell laptop with window 10 (same computer as last year). I am wondering if someone else has similar
    problem and any remedy.

    Charles

  7. Donald Smith says:

    My wife and I moved from Canada to NZ on 1 Oct 16 (permanently) and are considered non-residents for Tax purposes. Last lived in B.C. Sold all stocks and residence. Both retired. We have pensions, RRIF and interest income only. Will have to complete Canada 2016 Tax return and paper file as they will not accept net file from out of country. Have used Turbo Tax and Quick Tax prior to that for years. Question is can Turbo Tax handle the taxation problems inherent with our no longer being Canadian Residents?

  8. Hi,
    I bought Turbotax Premier for about $70 and it can file 12 returns. I wonder if I can share it with my friend since I do’nt need 12 returns and we two family can slit the cost?

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