There are lots of companies that offer free tax software for small business canada, but not all free professional tax software canada offer the same value. Before you sign up with a free service, ensure that you know what to expect and whether or not they will be able to satisfy your needs. It is also worth noting that subscribing to a free version of the tax software and services might allow for a few restrictions.
For example, some may not allow you to file multiple returns – one for each month – and instead only give you the option to file just one return which covers an entire year. Despite these restrictions it is still possible to glean enormous value from such platforms as they provide far more than those designed only for those with high budgets.
Wealthsimple
Wealthsimple joined forces with tax software company SimpleTax to become Wealthsimple Tax and offers tips to maximize refunds along with fast and accurate filing. Aside from fast filing and helpful form prompts, Wealthsimple also has popular tax-saving accounts like RRSPs and TFSAs for those who want to take advantage of them. Expert human advisors are also available for those who need assistance. The best part? It’s all free!
INTUIT TURBOTAX (FORMERLY QUICKTAX)
TurboTax is a user-friendly Canadian tax software program that lets you prepare your income taxes easily and quickly. The EasyStep Interview leads you through the tax preparation process by asking questions in plain English, and tax planning is a snap because of the ability to run multiple tax scenarios, and features such as the capital gains analyzer and incorporation analyzer.
Desktop editions:
- TurboTax Standard—families, students, and simple small businesses, up to eight returns—$39.99
- TurboTax Premier—for investments and rental properties, up to 12 returns—$79.99
- TurboTax Home & Business—consultants and small business owners, up to 12 returns—$129.99
- TurboTax 20 Returns—home and business, up to 20 Returns —$139.99
- TurboTax Business Incorporated—one corporate T2 return —$249.99
Online editions:
- TurboTax Standard—$19.99 per return
- TurboTax Premier—$34.99 per return
- TurboTax Self-Employed—$59.99 per return
The online editions do not do incorporate (T2) returns.
Mobile editions:
- TurboTax for iOS—free
- TurboTax for Android—free
There is now also a TurboTax Live product called Assist & Review that lets you talk to an expert about your taxes and get a final review of your Canadian income tax return before you file for $99.99 per return, and a TurboTax live Full Service product where Intuit’s tax experts prepare and file your taxes for you.
Note that for sole proprietors all versions provide the basic T2125 form (statement of business activities) for nonincorporated businesses. For those that need it, the more expensive editions provide “expert guidance” in the form of an extended interview format for self-employment income and expenses.
Import options: TurboTax desktop will import data from QuickBooks.
H&R Block
We chose H&R Block as best overall because it is a trusted name in tax preparation, and its tax software for small businesses and business owners offers an excellent user experience and covers a wide range of tax situations. It offers a straightforward user interface that makes it easy to do your taxes accurately the first time.Pros
- Online version includes self-employment and small business income on your personal tax returns
- Option to upgrade for on-demand assistance from a tax expert
- Mobile app allows you to upload tax documents and track filing status
Cons
- Business editions are priced higher than competitors
- Some functionality may not be available on mobile
H&R Block is a well-known brand in personal and business tax preparation. It was founded in 1955 and has prepared more than 800 million tax returns. If you want to do your own taxes, you can choose between online and downloadable versions of H&R Block’s tax software. For the 2019 tax year, H&R Block prepared almost 22 million tax returns and nearly 9 million people used H&R Block Online to do their taxes.
Windows desktop users get the most robust options, including corporation or partnership tax forms and employee-specific tax forms. This comes through H&R Block’s downloadable Premium & Business software, which costs $89.95 plus $39.95 per state return. If you can get by with a Schedule C, you can file with the Premium Online edition for $69.99 or Self-Employed Online for $109.99. Both require an extra $44.99 per state. If you have significant business expenses, you’ll need the Self-Employed edition, their top-tier online option.
The software program does a good job of walking you through complex tax situations. If you think you’ll need extra help, you can upgrade to Online Assist, which allows you to do your taxes on any device with unlimited, on-demand help from a tax pro. It costs $159.99 for Premium or $194.99 for Self-Employed, plus $49.99 per state.
Whether you file online or with the download version, the tax software comes with a maximum refund guarantee and 100% accuracy guarantee. All versions have an audit support guarantee. Whichever you choose, H&R Block covers most tax situations and is a top choice for many business owners, which is why it gets our best overall ranking.
Cantax
Two features — the Quick Entry screen which pulls data from various tax forms and the Pathfinder which acts as a guide between the forms and the return — make Cantax easy to work with. While it’s primarily geared as a sophisticated tool for tax professionals, small businesses could use it for their T1s or corporate tax returns.
TAXTRON
TaxTron used to be GriffTax and is still the only fully functional user-friendly Canadian tax preparation software available in both individual (T1) and corporate (T2) versions for both the MacOS and Windows. All versions are quick, easy, and fully bilingual, using a step-by-step approach to guide you through the tax preparation and filing process.
Editions:
- TaxTron Individual—one return of any income and up to 19 additional returns with total income under $31,000 each—$12.99 for Windows, $19.99 for MacOS
- TaxTron Family—Up to five returns with total income > $31,000 each and up to 15 additional returns with total income under $31,000 each—$24.99 for Windows, $39.99 for MacOS
- TaxTron Corporate—for corporate T2 —$99.99 for Windows or MacOS, free if you have a net loss for tax purposes
- Free web-based app for Canadian T2 tax returns—the company claims that “For CCPC companies with no income/expense/asset/liability during the year with single jurisdiction the web-application has facility to file a return in five minutes”
Import options: None
TaxAct
TaxAct includes an option to complete tax filings for partnership and corporations completely online and is the only place you can prepare taxes for a partnership or S corporation with either a PC or Mac online, which is why it’s our choice as best for partnerships and corporations.Pros
- Completely online federal and state taxes for partnerships, C corporations, and S corporations
- Unlimited free support from tax specialists and technical support by phone and email
- Choose between online and downloadable versions
- Discounts available for bundling personal and business taxes
Cons
- Limited options for audit support
- State forms may not be available to file electronically
- Downloadable version for Windows only
TaxAct is a large provider of online and downloadable tax software that has completed over 80 million tax returns since 2000.
Business owners who file online will pay $124.95 plus $49.95 per state. That includes sole proprietors who file with a Schedule C, partnerships that require Form 1065, corporations that file with Form 1120 or Form 1120s. However, tax-exempt organizations that file Form 990 must by the downloadable version though..
The download version (Windows only), which includes 5 federal e-files is $109.95. States cost $50 each. You can bundle personal and business for a total of $200.
The online experience isn’t quite as polished as some of the larger competitors, but it is generally intuitive and easy to follow. If you need assistance along the way, tax help and technical support are both available by phone. Customer service (without tax help) is also available by email.
TaxAct guarantees accuracy and the maximum possible refund but doesn’t include audit support. You can pay extra during your tax preparation process to add audit support with their third-party partner Protection Plus. Overall, TaxAct is an excellent choice for those who can handle things primarily on their own, and perhaps the only choice for PC or Mac users who want to do partnership or corporation taxes on their own, which is why it’s our top tax software choice for partnerships and corporations.
Conclusion
Tax preparation is a time-consuming and challenging process. Lots of people hate doing it and try to avoid at all cost, some trying to do it themselves using pen and paper or software they’ve obtained for free. However, some people hire a professional tax preparer who eliminates the burden of filing income tax returns from their shoulders.