A Guide to Using Tax Software

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Filing taxes using software scares many people. However, it should not!

Yes, tax situations are highly individualised and there are a myriad of rules and regulations that must be followed, as well as countless exceptions and loopholes to those rules. Nevertheless, tax software has been designed around these rules, and it has a much better memory than even the most experienced of tax preparation professionals. In addition, an online solution can be awfully economical and even more reliable than doing business with a “professional” that improvises specialist tax experience only two months per year! Rest assured, when using tax preparation software, you WILL be able to get through the whole process without having to call a disaster recovery company in London.

What software to choose?

The tax software on offer does not change much from one year to another – we find the same names and there is no one who is significantly better than another, it is only the interfaces that change. For this reason and others, there are not very many new companies trying to break into the tax preparation software business. That makes it easier to pick a good one, actually. With fewer choices, all of more or less the same quality, the average consumer can’t really go wrong, no matter which one they end up picking. Some of the most prominent tax preparation programs include QuickTax, UFile Tax Professional and H&R Block. Software as such are equivalent, and there are few substantial differences between them. other than the fact the H&R Block’s software often recommends that the user go to a physical H&R Block location to seek assistance with their tax preparation, which kind of defeats the point of using tax preparation software on their own home computer, doesn’t it? If one can ignore those instances, the software is actually just as fully functional as the rest and can easily be used as a stand-alone tax solution. However, it may be a better experience for the first-time tax preparation software user to opt for a software that allows people to make their own report without fear of missing an important element, not those that apply pressure to use their paid services. The fear of doing something wrong is already quite high in those using these services for the first time, and introducing the idea that something might “go wrong” if relying solely on the tax preparation software does not help, and it does not speak well about your business either. Why produce a tax preparation software that was so faulty? Users do not have to deal with that kind of pressure with QuickTax or UFile Tax Professional. Their prices are similar and they differ primarily in how they request the necessary information to be filled in. In the end, it’s a matter of taste!

 

There is also free software called StudioTax that is rapidly gaining popularity in Canada since it is possible to produce a Quebec provincial return. The tool is from Ontario, but it is translated into French and contains the forms for Quebecois. At the end of the day, if it all sounds like too much work, one can always hire professionals, like these accountants in Brighton, to save the day.

QuickTax, UFile, Tax Professional, or H & R Block?

So, which software should you choose? As I’ve said, you will likely have success with any and all of them. Still, there are a few matters to point out that are largely dependent upon personal preference:

 

– With QuickTax and UFile, you can easily import information from previous years if using one of these programs while with Tax Professional, everything must be complete by hand, over and over again each year.

– We find different versions of this software. It provides among other things the possibility of more than one report with the same software. Observe what each company offers, compare the offers and make a choice for your needs!

– All software operate under the same principle: an “interview” initially happens to input the answers to questions designed to identify the maximum credits and deductions to which you are entitled. Then we go to the forms section.

– TurboTax is generally more expensive than the other two, but it enjoys a higher reputation in most areas.

– QuickTax has offered a special promotion since 2013 that makes it so that all users are entitled to a full review of their statement before submitting. Some may find this comforting.

 

 

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