SimpleTax is an online tax filing software that lets you file tax returns for free, but you need to qualify for a simple tax return. In this article we will be discussing all there is to know about SimpleTax Canada, the simpletax return, and how to qualify so you can file your taxes online for free. There is so many online tax filing software out there that lets you file tax returns for free such as SimpleTax, but you need to qualify for a simple tax return.
What is SimpleTax Canada
SimpleTax is the friendly, fast, and fun way to file your income tax return. An innovative design and pay-what-you-want pricing model changes the way taxes are filed in Canada.
SimpleTax was created to eliminate the frustration in which occurred whenever we try to sit down and tackle our tax returns personally by ourselves, previous ways of tackling our 5ax problems were found to be poorly designed, slow and expensive. This doesn’t get better year after year. Now thanks to the brilliant genius behind SimpleTax, we can not only prepare our tax returns from the comfort of our homes, but we can also do it ourselves as well. This keeps getting better as the software advances over the years.
SimpleTax is an online tool that helps people prepare their own taxes. You just type in your name, address, answer a few super basic questions, then choose whether you’d like to input all the relevant tax figures manually, or just allow the CRA’s records to auto-fill your return like magic. SimpleTax then alerts you to any potentially expensive goofs you might have made. If you’re e-filing, all you have to do is press a button and your return will travel at light speed through the tubes of the internet and arrive instantly at the CRA. SimpleTax also guarantees that you’ll get back the biggest possible refund.
The company was started just seven years ago by Jonathan Suter, his partner Allison Suter, and their friend Justin Reynen. Just like everyone else, these guys dreaded doing their taxes. When they learned that the majority of Canadians even those with the most uncomplicated return paid professional preparers a lot of money to avoid doing their own taxes, they saw an opportunity to hack the experience.
It is important to note that SimpleTax has been acquired by Wealthsimple and as of February 2021, SimpleTax is now known as Wealthsimple Tax. For the sake of this article, we will continue to use SimpleTax in other not to confuse our readers.
Business Problems Solved by SimpeTax
On the surface, the problem SimpleTax solves is very straightforward, it helps you file your personal tax return with the Canada Revenue Agency making that process simple and pain-free.
The bigger problem that SimpleTax is trying to solve is the fear people have of doing their own taxes. Fear is a common tool employed by companies in this case, “if you do it yourself, you’ll make a mistake”. This is why tax preparers are able to charge a significant sum or take a percentage of your refund, for even the simplest returns. While accountants add value for those with complex tax situations, most Canadians, with the right tool, should have the ability to complete their own tax returns.
What is a Simple Tax Return?
A simple tax return is the most basic type of tax return you can file. Each tax filing program defines simple tax returns differently, but they generally include:
- W-2 income
- Limited interest and dividend income
- Standard deductions
- Unemployment income
- Many of the best tax software programs also include:
- Earned income tax credit
- Child tax credits
- Student loan/education deductions
- For example, H&R Block includes all of the situations mentioned above. Whereas TurboTax includes all except for student loan/education deductions. When you sign up for a tax service, it will take you step-by-step through the requirements needed to qualify for a simple tax return.
What Happens If You Don’t Qualify for a Simple Tax Return?
If your finances are a bit more complicated, you’ll need to file a complex tax return. Most tax software programs will charge you fees to file complex returns. Here are some scenarios where you won’t qualify for a simple tax return:
- You’re self-employed or a freelancer (1099 tax forms)
- You’re a small business owner
- You earn rental income
- You have earnings from investments, like bonds and stocks
- When you’re going through the tax filing process using a software program, you’ll receive notice if you can’t file a free simple tax return and instead need to upgrade and pay for a more complex return.
Other Free Simple Tax Filing Software Options
Aside from SimpleTax Canada which is a great simple tax filing software, there is other simple tax filing software out there. We will be giving you a list of the top five simple tax filing software, our goal is to create awareness on this to help you better choose software that best suits your need should you not be comfortable with using SimpleTax. The only exception is TaxAct, which charges $39.95 per state return; filing a simple federal tax return is free.
Here are your options:
- Best overall tax software: TurboTax
- Runner-up: H&R Block
- Best free tax software: Credit Karma Tax
- Best affordable tax software: TaxSlayer
- Best for accuracy guarantee: TaxAct
If you need to file a more complex tax return, all of the tax filing programs provide deluxe, premium, and self-employed plans, except for Credit Karma Tax.
To determine which tax software offers the best way to file your taxes online, we Select analyzed 12 programs. We compared each program on a range of features, including:
- User experience
- Expert tax assistance
- Accuracy and maximum refund guarantee
- Better Business Bureau (BBB) rating
- Customer reviews, when available
- The cost was one of the most important factors. While many of these services offer free versions, many people have complicated finances that require them to pay to file their taxes. We evaluated the price per plan and weighed the features you receive, like the ability to maximize deductions and credits. The more bang for your buck, the higher a service ranked.
Whether you’re new to filing taxes or a seasoned pro, user experience is crucial to filling out and submitting your return quickly and with little frustration. The services we chose had to be relatively user-friendly.
The ability to speak with a tax expert or support representative was a big plus. Four out of five of the best tax software offered some form of support. If a service supported consumers with a generous accuracy and maximum refund guarantee, it was ranked higher.
We also considered the Better Business Bureau rating associated with the software. BBB ratings help determine whether a business is operating responsibly and if it helps to resolve customer complaints in a timely manner. Customer reviews were also taken into consideration.
After reviewing the above features, we sorted our recommendations by best for overall tax filing, runner-up, free tax software, most affordable, and best accuracy guarantee.
The federal and state filing fees for the software programs mentioned above are subject to change without notice. Many programs don’t charge you until you file, so there’s a chance the fees can change from the time you start your return until you submit it.
In conclusion, in this article we covered all there is to know about SimpleTax Canada and filing for your simple tax return. Hence, we also let you know that SimpleTax is, not the only software out there which lets you file your simple tax returns online.l, therefore it is important to note that you don’t have to feel obligated to continue with SimpleTax, should you ever feel that it doesn’t serve your best interests anymore.