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moneysense.ca, 11/03/08
Which Tax Software?
Current issue:
The T4s and T5s have arrived and you are looking to buy software to do your taxes. Here’s a guide to figuring out if you should stick to the software you are familiar with or check out the competition:
- QuickTax: If you do taxes for your extended family, you may want to think twice before buying QuickTax because the number of returns has been reduced this year from 5 to 2. You can still prepare up to 18 more returns for taxpayers with less than $25K in income but otherwise have to shell out $10 to $15 extra per return. If you prepare taxes for you, your spouse and three others, you may have to pay $45 more than you did last year. Initially, there was some confusion about whether you’ll have to buy the expensive versions if you have capital gains, business income etc. but QuickTax assures us that all its products can handle every tax situation but the optimizers are only available in specific products.
Bottom Line: If you prepare 2 returns or less and are a QuickTax user you may want to continue to do so. Otherwise, you may to check out the competition because you’ll be paying more.
- UFile: UFile is significantly cheaper ($19.99 at Future Shop or Best Buy) than QuickTax Standard but you’ll have to put up with the interview method instead of entering information directly. On the bright side, UFile allows you to file up to 8 tax returns.
Bottom Line: If you prepare taxes for your extended family, UFile’s eight returns could be the deciding factor. Note that if you need help, you’ll have to send them e-mail; there is no phone support.
[Update: James Daw wrote in The Star that UFile has an optimizer that allows senior couples to split pension income to save the most tax.]
- StudioTax: Though I’ve purchased a copy of UFile, I’m using StudioTax to file our taxes this year. I like the fact that I can enter directly into forms but I’ve found that with StudioTax you really need to know what you are doing. For instance, StudioTax will allow you to enter more in net capital losses of prior years in Line 253 of the T1, which I believe is wrong. Line 253 should be equal to or less than taxable gains in the current year. The product is free to download and install and all the developers behind the product ask is a donation.
Bottom Line: If you like the direct-entry method and are familiar with the tax forms, you may want to consider StudioTax.
You may also want to check out GenuTax and TaxFreeWay.
moneysense.ca, 11/03/08
I wanted to try using StudioTax this year, but when I entered my address, there was a message informing me that the software would not be able to produce my Quebec provincial tax report.
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Frog
anything that runs on a mac? quicktax doesn’t. I know that for sure
I’ve installed StudioTax to give it a try and looks ok to me. I’ll still end up doing it by hand on paper though, StudioTax might be a nice double check of my math.
Frog: Do Quebec residents file two tax returns – one provincial and one federal? If so, do other tax software such as QuickTax and UFile support both returns for Quebec residents?
Ryan: AFAIK, the only tax software that works on Mac is called TaxTron. I don’t have any experience with them.
Link
I have been using quicktaxweb for the last several years, but this year I decided to use UFile.
I had the following problems with quicktaxweb
a) The refund calculated was far less than what a competing product calculated.
b) I was unable to locate some of boxes found in tax slips (for e.g. in T4PS boxes 30,32; in T3 boxes 49,51) in the screens. Not that these boxes may have been significant, but not finding them in the screen doesn’t lead me to believe that it is a well designed product.
c) Even the boxes that there available were difficult to locate in the screen (I mean because of the field layout in the screen. Blank fields were pre-populated with 0.00 making the navigation even more difficult. Try identifying the field with a number, amidst fields populated with 0, you’ll understand. It took me far more time to complete the return than required.
d) The website was slow
e)The price differential compared to other competing products
f) The support was not good either – When I sent them an email on the problems, I received a standard response explaining it works well.
I actually found the interview method on Ufile.ca (the online program) to be extremely user-friendly. I tried QuickTaxWeb and thought it was horrible, slow, and expensive. UFile was bang on to the penny with my return and it was easy to enter slips as I received them and go back later. Plus it optimized things nicely. The beautiful thing about it is that it worked on my Mac!
I recently bought a Mac and started using TaxTron for this year’s returns. The interface is a little clumsy, but the support (email) has been very good. For $39.95 you can process up to 5 returns >$30K and 20 returns <$30K.
Cutetax is another very good web-based program. It’s about $10 per return, but free for certain low-income people.
http://www.cutetax.ca
Works on Windows, Linux or Mac, pretty much with any browser.
I too found some problems with StudioTax 2007. In one numerical field I entered a number with comma, say $6,789.03, the software hung and then crashed. I had to start over again. In the charity/gift form, I entered some items, pressed the “next” button and then pressed back. I noticed that the charity items I entered earlier were duplicated.
Making tax software is not easy. Companies like Intuit have large test teams to catch logs of bugs before the product is released to the public. That’s something a two-person boutique company like StudioTax can’t afford to do.
I use quicktax web for this year and the past two years. I find it to be easy to use and informative (e.g. explain tax jargons in layman’s terms). But I still run into a problem with importing my previous year’s data and filing a joint spouse return. By the way, I got a discount of $5 for quicktax web from TD’s easyweb referral program. CIBC has similar offer, too.
CC,
Yes, we file 2 tax returns and it can become quite complicated when you have revenues from another province. There are multiple softwares which permit proper filing and limit the doubling of work.
Here’s the official list of software:
UFile for Windows
UFile.ca (Web)
QuickTax
QuickTax (online)
5dollartax
H&R Block Online Tax (Web)
Ryan C:
I use Ufile (Impôtexpert) online with a firefox browser on my mac and it works great.
Nicolas
I’m looking for something simple to use – RRSP, investment income, T3,T5’s.
Am not interested in software or downloading anything – would prefer online. But on that note, is there any difference in using the online version from the store-bought software version – is it cheaper to buy it in-store and then file? What is the difference between buying the Ufile software from the store and the online version? Price? Content? Pros and cons of either?
Pricing – Ufile seems to be cheaper – is that true? $15.95 for 1 return and another $9 for 2 for a total of $24.95. Someone said it is $19.99 for 8 Ufile returns for the store-bought software but for the online it seems to be $15.95 + $9 = $24.95 for 2 returns. Why is there a discrepancy?
How is Quicktax priced for 2 returns? It seemed expensive and if you have any investment income do you have to use their premium version.
Thanks very much.
RB.I used Taxfreeway last year and did over 40 returns with it. Cost is $9.99 plus tax, unlimited returns. Found it easy to use.
Taxfreeway is suppose to run on a MAC. I dont know anything else about this product. Maybe for $10 is work a try. I used studio tax this year and it worked just fine. I contacted their support several times. Response time was excellend and very helpful. They fixed the issue with the duplicate entries for charitable donations. I will very likely use this product from now on. I am so pleased to be a previous and never again user of QUICKTAX.
Gov’t Canada has a reference page for software that has been approved for Netfile:
http://www.netfile.gc.ca/software-e.html .
I tried Cutetax but reverted back to Ufile, which I’ve used for years, because it appeared that Cutetax has missed something in Provincial Tax Credit area (got $300+ more thru Ufile). But now, after I have paid Ufile so I can look at my actual tax forms, I find that Ufile made the mistake…..their software is entering property tax rebate twice. I liked Cutetax…..it was so fast and simple to use (Ufile takes much more time to load). Can’t comment on final end-product as I didn’t get that far. But the price was really good and couples with income $30,000 or less use the software for free (think it’s $20,000 for Ufile). Will definitely think about using them next year. Thing I really like about Ufile is the .pdf format for tax returns. I might look at Studiotax next year too as I’ve heard some pretty good reviews from previous users. But I prefer not to download programs unless I have to, seeing they are only good for one year.
I used quicktax last year but will use studiotax this year. I have also downloaded last year’s version of studiotax, entered last year’s data and checked that the calculated result is basically the same as that from quicktax.
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To RB: Don’t be misled by QuickTax’s advertising… the Basic version will do everything , including non-incorporated business, except bring forward data from last year. You DON’T need the Standard or Platinum version – the extras they have, “tools and optimisers”, are superfluous.
I am presently comparing QT Basic, Studio Tax and U-File, and I’ve decided to use ST for the several returns I netfile. I don’t like the way U-File works (see my post in another place), and I prefer QT’s and ST’s method of direct entry on to the forms. ST isn’t perfect – what is? – but it gets the right answer, and the price is right.
Just want to drop a thank you note for bringing StudioTax to my attention. The interface is very intuitive to use.
I have trialed both GenuTax and Studio Tax after years of using Quick Tax.
Studio Tax is OK for simple returns that do not require income splitting on T3/T5 slips, rental income splitting, or business income unless you want to do a ton of manual calculations and double entries for a spousal.
GenuTax does the above but through a tedious interview process even using the “streamlined” interview process. Also, for some reason it does not enter “foreign income tax paid” on the tax form, even when entered on its T5/T3 slips window. You must manually calculate it and do a separate entry. Quick Tax, being form based, is definitely faster than Genu Tax but pricing which is now way too high considering development costs must now be minimal, dictates GenuTax as the most cost efficient. I have been told that come 2009 GenuTax may produce a forms based tax return which should put it on a par with Quick Tax and certainly cheaper.
Yes, QuickTax is certainly still the quickest, but I don’t find it too arduous to split joint stuff with spouse in Studio Tax – it doesn’t take much longer.
To Canadian Capitalist: Do you think you could put the links to related subjects at the bottom of the comments as well as at the top? – then we could just click in a lazy fashion and not have to whizz up to the top to find them. Thanks!
[...] http://www.canadiancapitalist.com/2008/03/11/which-tax-software Posted by Patch Filed in Uncategorized [...]
TAX SOFTWARE COMPARISON 2007
I have used QuickTax and UFile in the past and tried Studio Tax this year. It had a great interface and was easy to use. I am not sure it will catch my mistakes as well as some of the other packages though. Definately the one to pick for simple, straightforward filings.
Get a 30% discount on Quicktax Web at above site.
http://www.quicktax.intuit.ca/tax-software/personal-products/pdetails.jsp?catId=4&b=rbcemp
The federal government department I work for accidently classified my province of work as QC. This went on for a number of months before it was caught. I was never a resident there. In addition, because they classified me as a quebec employee, no provincial income tax was taken off.
I just used quicktax, which allowed me to enter my T4 info from quebec – as well as the other T4 info once the problem was fixed and I was properly classified. Once I submit this to UFILE, have I completed my tax obligations? Do I need to do anything with the Quebec tax agency?
I find this all a little confusing!
Any help would be great!
I am A mortgage agent working on commission income only. What software is best for this type of employment? Write-offs …….
For 2007 tax, I use 5dollartax.ca , a free software, easy to use, netfile for the whole country.
I have used Cutetax.ca (now TaxChopper) for 5 years and quite happy with it, above all, they have maximum refund and satisfaction guarantee.
You guys should try AceTax http://www.fredsoft.ca/acetax/:
- Starts at just $8.99 for new users and then $6.99 for returning customers.
- 20 returns for just $29.99
Feature Rich
- CRA NETFILE Certified
- NETFILE or paper file
- Copy from previous years
- Your return on actual CRA forms
- No software to download
Priced Right
- TRY FOR FREE NOW!
- Prepare upto 20 Tax returns
- Save more when returning to AceTax
- Fair Canadian pricing
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Will give StudioTax a spin this year in addition to UFile, as Intuit’s 2007 cash grab left me less than impressed. After many years as a steady customer, I’ve left Intuit and don’t plan on going back. They’ve lost my trust. While the Quicktax product is good in terms of functionality, I prefer to deal with those who don’t walk the dark side of capitalism to grind out a bit more profit. I think it probably backfired on Intuit when they tried to suck the well dry.
Part of the advertising blurb on Intuit’s website for QuickTax this year (2008 tax year) is rather funny:> It states, “This year, QuickTax includes 8 returns for net income over $25,000 – that’s 6 more than last year [emphasis added].”
That doesn’t sound like repentance for having made a bad move last year and a mea cupla to persuade us to go back and place our trust with Intuit. Instead it sounds more like “Since our cash grab didn’t work last year, we’ve decided to give back what we’ve taken away; and hope that you take the message literally without considering the meaning”.
On a more functional note, if Intuit wanted me and others back from Ufile or TaxStudio, then perhaps they should support an import facility within QuickTax so users can easily switch back. Instead, the absence is just one more reason to stay away. I guess Intuit has redefined their target market segment to focus on “high-grading” convenience customers:<
I used it last year and there was an error on my wife’s return. This year, there were several bugs in the program (run-time errors) and I purchased a couples return, but when I went to netfile the second return – the license did not show up. I had to purchase another individual license to file my wife’s return (it was of course April 30th). They have no phone contact number whatsever. When I sent them an email with both receipts and ecxplained the issue, they replied saying they have a no refund policy but sent me a coupon for next year’s return. Stay away from this mickey mouse outfit and go with one of the better known names.