TaxFreeway vs TurboTax

TaxFreeway prepares Canadian federal, provincial, and territorial tax returns for individual filers. It supports self-employment, rental income, capital gains, and unlimited slips such as T3, T4, and T5. Returns can be completed in Interview mode, Form mode, or both. Tools include integrated spousal returns, tax tips, RRSP and split-pension planners, medical-expense and donation planners, and a return review. CRA services include Auto-fill My Return, NETFILE, ReFILE, Notice of Assessment through Tax Software Service, and address or direct-deposit changes. Returns are prepared and saved on the user’s computer, and the company says its website does not store personal financial information. Users with total family income of $20,000 or less can prepare and NETFILE at no cost. Windows and Mac product keys cover up to 20 returns for the current tax year, priced at 9.95 USD and $14.95, paid once. Quebec TP-1 returns and several electronic form transmissions are excluded.

TurboTax is tax preparation software available online, on mobile, and as desktop software. It supports returns involving self-employment, investment income, and rental income, with state filing available as a paid add-on. Users can import, upload, or photograph documents, including information from participating employers and financial institutions; the maker says auto-imports are available from more than one million such organizations. Customers can receive unlimited expert advice or have an expert prepare a return from start to finish. Free filing is limited to simple Form 1040 returns, and the listed estimate is that about 37% of taxpayers qualify. The free tier excludes itemized deductions, business income, stock sales, rental income, and other schedules. Deluxe searches more than 350 deductions and credits, while Premium lists more than 450. Do It Yourself Deluxe is listed at $79, paid once for federal filing, with state additional. TurboTax says its accuracy guarantee covers IRS or state penalties and interest caused by a calculation error, subject to terms.