Reprinted from Renfrew-Collingwood News,
April/May 2002 Edition. Updated May 2005.
“In this world, nothing is certain but death and taxes.”
If you wanted to use a computer to do your taxes you either had to take your slips and receipts to your favourite bean counter or an H & R Block tax preparer, and pay him or her a small fee, and have him or her punch it through and send it electronically on your behalf. Well, not anymore…In last few years a number of computer software manufacturers like Edmonton-based Intuit or Richmond Hill-based Taxomatic have been putting out software packages QuickTax and Taxwiz respectively to help all those who are, including yours truly, numerically challenged. For a complete list of taxation software approved by Canada Revenue Agency, please check here.
Advantages:
- A real timesaver;
- Carryover credits like: unused RRSPs, tution fee credits, charitiable/political donations, and unclaimed medical receipts can be automatically carried over to subsequent years relatively easily;
- Ease of use;
- Access to online help and assistance;
- Video tutorials, tax tips and error reviewer;
- No calculators needed, only need to supply the numbers;
- Computer will optimize each individual return; and,
- Generates the computer files for electronic filing over the Internet.
Disadvantages:
- Cost: $20 – $40.00.
- Software only good for current tax year. You will have to buy the software again for next year.
- Software limits the number of returns you can prepare.
So, once you decided to purchase the software and have managed to punch in all of your T-Slip information, and receipts etc. you will have the option of either printing it out and sending it the old fashion way by mail or by submitting it electronically through Canada Customs Revenue Agency’s website using their increasingly popular NETFILE program. In fact, last year, more than 1.4 million Canadian Taxpayers chose to file their returns this way. Typically, if the taxpayer decides to file electronically, he or she can expect to receive a refund and their notice of assessment in approximately 2 weeks versus the typical 4 to 6 weeks it would take if you send it via “snail mail”. So what if you owe money, can you still file electronically… You betcha… You can still file electronically and have the option of paying your outstanding tax bill through your bank, electronically (i.e. Internet banking or banking by phone, or ATM) or in person through your teller. You can also simply mail a cheque for the outstanding amount to the Receiver General of Canada postdated no later than April 30th of the current tax year.
EXCEPTIONS for e-filers
Individuals, who fall in the following categories must file a paper return:
- Deceased individuals. Filing deadlines may vary depending on date of death. You can check here for more information.
- Newcomers to Canada.
- First-time income tax filers.
If you are like me and do not want to shell out the $20.00 or $30.00 dollars for the software because you are cheap or your refund simply does not add up to $20 – $30, you may want to consider filing online. Both QuickTax and Taxwiz have an online presence that allows individuals to file their returns online for a small fee. You can go to www.quicktaxweb.ca and file your tax online. QuickTax charges about $19.95 per single return, $24.95 for a single and one spousal return. If you earn less than $20,000 (Line 236) total net income, you can qualify to file for free. You can also go to www.taxwiz.ca and file you returns with Taxwiz. Taxwiz charges $12.95 for a single return or you can do a single return plus a spousal return for $14.95. The two websites do accept credit card payments. Although QuickTax and Taxwiz are probably the biggest players in this space, you can also try ufile at www.ufile.ca. They do accept all major credit cards on their site and charge $14.95 for single return, $5.00 for each additional family member returns, and free for individuals making less than $20,000 (Line 150) or if you and your spouse(or common law) are making less than $20,000 (Line 150). Like Canada Custom’s Revenue Agency’s NETFILE service, all data transmitted by these websites to CCRA are encrypted and sent securely over the Internet. All the aforementioned software packages and online services are all certified by Canada Customs Revenue Agency, for further information, you can check out www.netfile.gc.ca/software-e.html. So what if I am a Mac user?
I almost forgot. For all you Apple or MacIntosh lovers out there, you can use either a Mac version of Quicktax or use a program call Taxtron (formerly GriffTax). I am sure you can probably pick up a copy at your favourite Mac dealer or at the Taxtron website. All mac and apple users out there can use the aforementioned online versions through their favourite web browsers.
Low-Income Individuals and Families
For all individuals making less than $20,000 in net income or have a family income (i.e. husband and wife) of less than $40,000, you can contact your nearest neighbourhood house or community centre to see if they are hosting any Income Tax Clinics to help individuals in low income situations file their returns. You can also call Canada Customs and Revenue Agency for the nearest clinic in your area at 1-800-959-8281.
See you soon,
~Geekboy
If you have any questions, suggestions, or comments, feel free to drop me an e-mail at: gb.technobytes@gmail.com
Posted by Geekboy 