It’s that time of year again, the Ides of March come calling as you sort through your paperwork and prepare to file your taxes.
Whether you’re expecting a return or a bill, preparing early lets you stay on top of your finances. An efficient return means you can get your tax credits faster. Or, if you end up owing, you’ll know how much debt you’re dealing with.
Choosing the right tax software is important, especially if you’re filing your taxes for the first time or have minimum experience. This is where we can help. Keep reading for our Wealthsimple Tax review to help decide if it’s the right option for you.
Key Points
- Wealthsimple Tax is a tax software that allows you to file your taxes on your own for free.
- You can upgrade to a paid plan to get more features, like one-on-one expert guidance and audit assistance.
- Wealthsimple Tax optimizes your deductions to maximize your tax refund and guarantees accuracy so you’re not left leaving money on the table.
What Is Wealthsimple Tax?
Originally an investing company, Wealthsimple quickly gained popularity for its low fees and lack of account minimums. The business uses diverse international investments via cost-effective index funds to help consumers earn while mitigating the resulting tax bill.
The company always offered services like dividend reinvestment, automated rebalancing, and tax loss harvesting so that everyday investors can save while they earn. With the success of these features, Wealthsimple expanded by developing a new product: Wealthsimple Tax. It’s a free platform where consumers can file taxes using cutting-edge smart tech that is secure, accurate; and simple to use.
Wealthsimple Tax: Snapshot
| Best Suited For | Both simple and more complex tax situations. (including those that receive income from a business, rental, and investments) |
| Cost | Basic Plan: $0 Plus Plan: $40 Pro Plan: $80 |
| Key Features | – Pay what you want – Fast refunds – Privacy and security – Certified software – No installations needed – 100% accuracy guarantee |
How Does Wealthsimple Tax Work?
Straightforward by design, Wealthsimple Tax lets you complete your tax filing in just a few simple steps. The service meets all of Revenue Canada’s requirements for security; and, since the system is set up for businesses, individuals, and self-employed people, anyone can benefit. All you have to do to complete your return is:
Create An Account
Navigate to the Wealthsimple Tax website and follow the prompts to start your return. Make an account by providing your personal information (name, date of birth, marital status, address, and CRA registration). If you are an existing Wealthsimple customer, the process is easier, requiring you to log onto your account and navigate to the ‘Taxes’ section on the menu.
Auto-Fill Your Return
This is where the magic comes to life. Once you have linked your CRA account, the software imports all of your tax documents. It then automatically fills out your tax information. Not only does this save you a lot of time, but it also limits the risk of making an error when inputting your financial details.
Enter Tax Details
Next, you will be asked a series of simple questions such as “what is your marital status” or “did purchase a home?” This is to learn about your investment earnings, income, and personal situation. Based on this information, the software determines which deductions you qualify for. On the side of the screen, you can see your progress and track your estimated refund in real-time.
If you end up owing the government money instead of getting a refund, you can make a payment arrangement with the CRA or use a personal loan to help cover the debt. It’s always a good idea to check your credit score before applying for any type of loan. This is because your credit score is one of the many factors used during the loan approval process.
Review Before Submission
Once all of your details are in place and you have claimed every possible deduction, you will be prompted to review your information before submission. Should there be any flags on your account, or if the software thinks you may be eligible for further deductions, you can handle those matters at this time.
Send Off Your Tax Return
So long as all the facts and figures are in order, you can then submit your taxes directly through the site. It is compatible with the Canada Revenue Agency’s Netfile function, meaning there are no extra steps to take. So long as you have a direct deposit arrangement with Revenue Canada (and you are expecting a return), you can expect your return in a matter of weeks. It’s that simple.
Find out if you have any unclaimed cheques from the CRA.
Wealthsimple Tax Features
In addition to the personal autonomy the software offers during tax filing, it also comes with a host of other advantages. These include:
Pay-What-You-Want Fee Structure
Whether you have a simple or complex tax situation, Wealthsimple Tax lets you file your taxes for free. The idea is premised on a pay-what-you-can model, almost like a donation to the company.
While it is both appreciated and recommended that you make a payment when filing your taxes, it is in no way an obligation. Should you choose to issue a payment, the site accepts cheques, eTransfers, PayPal transfers, and credit cards.
Autofill Features
There is a massive difference between $100 and $1,000. When filling out a form it takes only the slip of a finger to make that (potentially costly) mistake. The autofill component of the software pulls your information directly from your CRA file, helping you avoid issues with typos or confusion. Because the system works with the CRA’s auto-filling technology, there is much less risk of error.
Accuracy Guarantee
Taxes are not the right place for estimates, they are a matter of financial precision. Thanks to the guaranteed accuracy feature on this software, if there is an error on your taxes that results in a fee for the consumer, Wealthsimple Tax will offer reimbursement. This reduces the risk associated with filing since it helps to know that you won’t face any financial risk associated with a mistake.
Maximum Refund
No one wants to miss out on the chance to optimize their return, which is what makes the maximum refund feature of Wealthsimple Tax so desirable. With a whole host of hidden deductions unknown to most who didn’t attend accounting school, it’s important to opt to file your taxes somewhere that won’t have you missing out.
Often, the opportunity to maximize a refund is why many opt to get a professional to do their taxes. However, this means that you have to book an appointment, take time off work, and attend an office in person. The convenience factor paired with the maximum refund feature makes it so that you can get the most out of your taxes from the comfort of your home.
Human Support
Though it is handy to be able to do your taxes from the comfort of your home office (or couch), getting a professional consultant can also be reassuring. While this support is only available through email communication or their virtual assistant, it still gives you the chance to ask questions. Moreover, If you are confused about any part of the process and require expert help to file your taxes, you can opt for the Wealthsimple Pro plan.
Need help applying for the disability tax credit? Consider reaching out to a disability tax credit consultant.
NETFILE Approved
The system by which the CRA accepts tax filings is called Netfile. It is a transmission service that lets users submit tax returns online without compromising security.
How Much Does Wealthsimple Tax Cost?
The Wealthsimple Tax service is technically free of charge since it uses a pay-what-you-want structure. You can file your taxes at no cost, though you have the option of sending a payment to the company. If you choose to pay, you can send money via PayPal, credit card, cheque, or Interac eTransfer.
Here are Wealthsimple Tax plans currently available:
Basic Plan
- Free (or pay what you want)
- Supports up to 2 tax returns
- Guaranteed maximum tax refund
- Optimizes deductions and credits
Plus Plan
- $40 (free for Premium clients)
- Supports up to 8 tax returns
- All Basic Plan features
- Audit protection
- Priority email support
Pro Plan
- $80 (free for Generation clients)
- Supports up to 20 tax returns
- All Basic and Plus Plan features
- 30 minute one-on-one consultation with a tax specialist
Wealthsimple Tax Benefits
- Streamlined design. Your entire tax return is visible on one page, so there’s no need to wait, refresh, or hit the back button. Plus, your tax refund (if you’re entitled to one) is calculated instantly as you go through the process.
- Reimbursement for penalties and interest. If there are any computational errors made that end up costing you in interest and penalties, Wealthsimple Tax will fully reimburse you.
- Real-time use. The Wealthsimple Tax software calculates the information in real-time and makes the necessary changes to the system on the spot. The program is constantly updating itself to keep things accurate.
- Simplicity in layout. Wealthsimple Tax layout is designed in such a way that it makes filing your taxes easy.
- Import previous years’ tax filings. Simplify and speed up the process of filing this year’s taxes by importing prior tax year’s data.
- Handles simple and complex situations. Wealthsimple Tax is not just for simple tax filings. Instead, it can handle more complex tax situations, such as rental, investment, and business income.
- Step-by-step guidance. Just answer some simple questions, and you’ll get all you need to file your return.
- RRSP calculator. You can quickly see how any changes to your RRSP contribution can affect your tax refund or taxes you owe.
- Smart search box. Type in a search term to instantly add it to your tax return.
What If Wealthsimple Tax Makes a Mistake On Your Tax Return?
Wealthsimple Tax offers a 100% accuracy guarantee. That means if any errors in calculations are made when you file your taxes with this software and you are either charged interest or a penalty, you will be fully reimbursed.
Plus, Wealthsimple Tax makes every effort to make sure you get the highest refund possible. If you can find a larger refund elsewhere, Wealthsimple Tax promises to give back any money you paid them.
How Do You Create A Wealthsimple Tax Account?
Creating an account with Wealthsimple Tax is easy. Follow these steps:
- Visit my.wealthsimple.com
- Choose “Get started”
- Click “Sign up on the web”
- Enter your email, choose a password
- Click “Sign up”
- Choose “Tax” from the options provided
- Choose “I’m new to filing taxes with you”
- Follow the prompts to set up your account
Once your account is created, you can begin filing your tax return.
If you’re already a Wealthsimple client, follow these steps to file your taxes using Wealthsimple Tax:
- Log into your Wealthsimple account
- Choose “Tax” from the options provided
- A Tax account will automatically be opened for you
What Tax Situations Are Not Supported By Wealthsimple Tax?
Wealthsimple Tax supports simple personal tax returns, as well as some complex tax filing scenarios. However, it doesn’t support the following:
- Non-residents or deemed residents of Canada
- T2 (Corporate) tax returns
- T3 (Trust) tax returns
- Pre-bankruptcy returns
- Form T2203 – Provincial and Territorial Taxes for Multiple Jurisdictions
- Form T1163 and Form T1164 – AgriStability and AgriInvest programs
What Information Do I Need From Last Year If I’m Switching To Wealthsimple Tax?
Wealthsimple Tax has made it easy to switch to their platform. Generally speaking, most tax filers have few figures that are required from the previous year’s tax return.
To find the amounts you need for this year’s tax filing, you can look at your Notice of Assessment (NOA) or in your CRA My Account. If you already have a CRA My Account, the auto-fill feature will populate the majority of boxes required, including your RRSP information and unused tuition amounts.
If you used another tax software, you may have a summary of amounts from last year. Otherwise, you can use Wealthsimple Tax’s search box to find the numbers you’re looking for.
What If I Need Help Preparing My Income Taxes?
If you need a bit of help filing your taxes, Wealthsimple Tax offers a few options:
- Email support: You can email the support team at Wealthsimple Tax at tax@wealthsimple.com.
- Professional advice: You can spend a 30-minute one-on-one session with a tax specialist to ask questions or get help preparing your tax return. You’ll need to pay extra for this feature and book a time slot in advance. Once you book, you’ll receive an email reminder 24 hours before your appointment.
- Audit support: If your tax return is audited by the CRA, Wealthsimple Tax’s Audit Support service can provide guidance throughout this process.
Wealthsimple Tax Review: Final Thoughts
Whether you are hoping for a refund or trying to limit what you need to pay, filing your taxes can be time-consuming and expensive. The Wealthsimple Tax software is designed to make the whole process easier. With well-vetted technology and the proven track record of success of the Wealthsimple brand, it can take a lot of the pressure off of consumers.
Given our Wealthsimple Tax review, the software’s benefits of autofill tech, virtual assistance, and intuitive function make it worth looking into.
