Filing your taxes can be quite daunting. You could pay someone else to do it, or do it the Canadian way.
Most Canadians conveniently use online tax software programs that handle basic returns to efficiently manage their taxes. Wealthsimple Tax, better known by its earlier name Simpletax, is a popular tax software program in the country.
Founded by designer Jonathan Suter and his wife Allison, a tax lawyer, Simpletax was developed by Justin Reynen in 2012. It was purchased by robo-advisor giant Wealthsimple in 2019.
Exclusive to Canada’s provinces and territories, this web-based program is a pioneer for pushing paperless calculations and filings for almost a decade. Read on for our review of Wealthsimple Tax.
How Does It Work?
All you have to do is create an account with Wealthsimple Tax to begin filing your tax returns. You’ll need to fill in basic information like your name, address, marital status, date of birth, and your registration with the Canada Revenue Agency (CRA).
After linking your CRA account, documents from the CRA will be imported to your Wealthsimple account and your returns are then auto-filled. You only need to enter your tax details by answering a series of questions that will determine your deductions and calculate your returns.
After a final review of the details you’ve entered, you can submit your tax return using the NETFILE function available with the service and receive your refund in two weeks if you have a direct deposit with the CRA.
The most recent version of Wealthsimple Tax offers the following features which you can benefit from when filing your income tax returns:
- Free use of the software (though donations are accepted)
- NETFILE approved
- Certified by the CRA and Revenu Quebec
- You can import data from the CRA
- Adjustments after filing with the re-file function
- Management of complex tax situations like rental, investment, and business income
- Maximum refund optimization
- 100% accurate calculations with a money-back guarantee
- Free email support
- Easy user interface
- Importing previous year’s returns
- Registered retirement savings plan maximization calculator to find out the highest possible refund
Wealthsimple Tax Advantages
This software is a blessing for Canadians in terms of features and functionality. Below is a list of benefits that make this tax software program worth your while:
#1. Saves Time
Wealthsimple Tax will allow you to retrieve the form you’re looking for and figure out your credit and deductions instantaneously. Because the refund is calculated with your filing, the return is displayed on a single page so you can easily review it at any time.
#2. Maximum Refunds
You can receive the maximum possible tax refund while using Wealthsimple Tax. Thousands of calculations are processed in seconds while deductions and credits like donations, public transit expenses, medical expenses, pension, political contributions, etc. are taken into account.
#3. Money-Back Guarantee
To eliminate hesitation on using the software, any inaccuracy in its calculations will instantly fetch you a money-back guarantee. This is also applicable if another service provider can fetch you a larger refund. Several tests are constantly run every year to assure 100% accuracy in the calculations.
#4. Completely Free
Despite being a small business, Wealthsimple Tax is completely free to use. They have a pay-what-you-can option that allows you to pay any amount you believe the service is worth. The default donation amount is set to $19.
Wealthsimple Tax Disadvantages
No software is perfect which is why we put together a list of disadvantages when using Wealthsimple Tax. Since it’s free, it doesn’t include features you’d expect in a premium, paid tax preparation software. Some disadvantages in using this software include:
#1. No Immediate Customer Support
The Wealthsimple team only offers an email address in case of clarifications or discrepancies. Since there is no phone number or chatbot available, you’ll have to wait for the support team to respond.
#2. No Expert Tax Review
You don’t have the option to receive a professional review of your tax returns, a common feature in paid tax software.
#3. No Audit Defense
On the off chance that you’re being audited, Wealthsimple Tax cannot provide you with any backup or tax experts from the company.
#4. Not Suitable For Farmers
Farmers will find this program redundant. Wealthsimple Tax, unfortunately, does not support agriculture-friendly programs such as AgriStability and AgriInvest.
A Secure Solution for Filing Taxes
Despite these drawbacks, you never have to worry about the safety of your personal data when using Wealthsimple Tax. The data is encrypted when being uploaded and while it’s on the software’s services. For additional security, they also require you to password-protect your data.
Wealthsimple Tax saves you from poring over tax policies and documents. The software also has enough features for most Canadians. It’s no wonder that many rely on it for effortless and accurate tax filings.