# Paper Tax Return or Software?



## peterk (May 16, 2010)

I've alway done my taxes by hand, in the booklets. It's only every been an income, and a tuition credit though.

This year I'll have tuition credit, RRSP contributions, Northern Resident deduction, Moving expenses, and one other *special* thing I can't think of at the moment.

Do you think it'll be worthwhile to use a software program to do the return this year, or just figure it out on paper? I've never tried tax software before. Will it take just as long to figure out as doing it by hand?


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## Homerhomer (Oct 18, 2010)

Doing it without software!!! you are my hero!!!!

Do yourself a favour and get studio tax, not my preferred software but can't go wrong with free. You will need to get used to the software that's for sure, but at the end it should be easier, much easier, and then next year just roll the return forward and don't worry about entering all the personal info, carry forwards and such.


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## Ponderling (Mar 1, 2013)

I'm still a luddite. I find it easier to build little spreadsheets and use them do do things like documenting capital gains on partial sale of a holding, or file for a capital loss carried forward.

If you are just filing a straight forward return, I am sure the software does a fine job.

Once you start investing with a non registered portfolio I loose confidence it would work.

I have yet to try a package, however.


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## wendi1 (Oct 2, 2013)

I usually buy the TurboTax. But, it doesn't deal very well with non-registered accounts and ACBs, so I have a spreadsheet as well. 

Where it comes into its own is the new stuff (politicians can't resist messing with the tax code), and of course, the moronic arithmetic around charitable donations and medical expenses.

If you are going to pay for one, make sure you share the cost with a bunch of people - I used to do four sets of taxes. Or, use one of the free ones, as long as they are CRA certified, you should be fine.


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## Homerhomer (Oct 18, 2010)

Ponderling said:


> Once you start investing with a non registered portfolio I loose confidence it would work.
> 
> .


Tax software was never meant for tracking portfolio, it's simply for reporting income/gains to cra and entering numbers properly calculated elsewhere.


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## fatcat (Nov 11, 2009)

http://simpletax.ca/

excellent and easy to use
the cost is "by donation'
i used it last year for free and this year will drop something into the hat

whatever one you use, you will never go back to paper


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## Eclectic12 (Oct 20, 2010)

peterk said:


> I've alway done my taxes by hand, in the booklets. It's only every been an income, and a tuition credit though ...
> Do you think it'll be worthwhile to use a software program to do the return this year, or just figure it out on paper?
> 
> I've never tried tax software before. Will it take just as long to figure out as doing it by hand?


I find the software much faster as well as convenient. 

When I used paper forms, there were always copying errors, calculation errors to fix which the software pretty much eliminates. The U-File interview process also allows me to have a pile of slips (more and more online PDF files), type in the correct boxes based on what I have (ex. have a T4 income? Enter box 22 here, box 40 here etc.), save and review. If I don't have all the slips yet, it's easy to save what I have, then add the rest as they come in.

I've testing Studiotax by entering last year's info so that I can learn the softrware as well as cross check the numbers before making a decision.


If you like the paper forms, where you aren't a Quebec resident and are comfortable with spreadsheets, there's also tax spreadsheets such as:http://www.peeltech.ca/mytax.shtml
The year I used it, I plugged in the numbers, reviewed it a couple of times, printed the forms to sign and put into the tax envelope to send to CRA.


Don't forget - beyond the benefits of avoiding manual or calculation errors, you can also save copies of different scenarios to see how the numbers change. That's in addition to the online help.


So unless computers are you arch enemy - I'd go for it.


[ Did I mention it was easy to NetFile, where the refund was deposited in short order? With your simple return, NetFile should be an attractive option. ]


Note that StudioTax 2013 is available for download now, so you have plenty of time to figure it out.
http://www.studiotax.com/en/?page=2


Cheers


*PS*

If you want an idea of what's out there, this wiki link is good:
http://en.wikipedia.org/wiki/Comparison_of_Canadian-tax_preparation_software_for_personal_use

Just make sure to double check as the link shows UFile with last years number of returns (8) whereas the UFile site says they've dropped it to four.
http://www.drtax.ca/en/UFile/why-ufile/product-comparison.aspx


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## Eclectic12 (Oct 20, 2010)

Ponderling said:


> ... If you are just filing a straight forward return, I am sure the software does a fine job.
> 
> Once you start investing with a non registered portfolio I loose confidence it would work ...


It's made my non-registered portfolio easy - compared to the copying/calculating mistakes I used to make with paper tax form. 

I'm guessing that you are confusing tracking the info needed for the tax return (ex. per share ACB, proceeds from sale, etc.) - with what is on the tax return forms (ex. Schedule 3, Schedule 4 etc.). The tax software only includes what's on the forms plus maybe some calculators and help for filling the forms or reducing taxes.

There are separate programs to track the portfolio value, acb, etc. The big players used to be Quicken and Microsoft Money but Microsoft killed Money (though the Sunset edition is available for free http://www.microsoft.com/en-ca/download/details.aspx?id=20738). As well, there are several open source ones like GnuCash http://www.gnucash.org/ ).


Of course if you don't want a different interface, graphs or other features - then spreadsheets work just find to track the investment data.


Cheers


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## lb71 (Apr 3, 2009)

fatcat said:


> whatever one you use, you will never go back to paper


+1


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## 6811 (Jan 1, 2013)

lb71 said:


> +1


+2


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## OhGreatGuru (May 24, 2009)

fatcat said:


> whatever one you use, you will never go back to paper


And you will also never have a proper understanding of the effects of various deductions and credits on your tax bill. The software will just be a black box into which you have plugged numbers, hoping you have not overlooked anything. 
- from another Luddite


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## wendi1 (Oct 2, 2013)

LOL OGG.

I think if we REALLY understood the tax system, the sabbots would be flying. I find the black box a very comforting image...

Most of the software has an interview process, and let you review the forms in their original, paper format, if you must cling to the familiar.

But the arithmetic will be right. Mostly right.


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## nobleea (Oct 11, 2013)

OhGreatGuru said:


> And you will also never have a proper understanding of the effects of various deductions and credits on your tax bill. The software will just be a black box into which you have plugged numbers, hoping you have not overlooked anything.
> - from another Luddite


Nonsense. The software makes it easier to do that. What if I increased my RRSP contribution, or a spousal contribution, or made a larger charitable donation, etc etc. Takes 5 secs to figure it out. You can run multiple scenarios way faster.


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## Eclectic12 (Oct 20, 2010)

OhGreatGuru said:


> And you will also never have a proper understanding of the effects of various deductions and credits on your tax bill.
> 
> The software will just be a black box into which you have plugged numbers, hoping you have not overlooked anything.
> - from another Luddite


 ... Only if one looks at the final number and ignores all the forms, line numbers, carried forward amounts *and* the online help. All the same stuff is on the tax forms, whether the numbers came from an interview through software or using the paper forms plus more paper.

Personally, I find it easier to to trace these now in the software than when using the paper forms because I can spend my time/energy on the flow of the forms versus the tedious math & manual copying (ex. calculate schedule 7 line 199 and then copy to line 127, without a number or location mistake).


BTW - on most tax software I've used, there's a return analysis that will highlight any inconsistencies or items flagged as potential things overlooked (ex. "there's no medical expense claim - click here to review if it applies").



Cheers


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## fraser (May 15, 2010)

IF your are entitled to a refund, it will come much faster if you use software and efile. Much faster.

I am a fan of the tax software. Don't take shortcuts, follow the interview process. As others have said, you will never go back.


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## peterk (May 16, 2010)

Alrite, I'm convinced! I'll probably try the free studio tax version - Can't beat free...


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