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We break down what to expect from this "pay what you wish" income tax return preparation platform, offered by the Canadian online investing company Wealthsimple.
Does anyone (besides, maybe, accountants) enjoy filing their taxes? Among Canadians who are brave enough to tackle their own returns, tax-filing software is a go-to, with TurboTax claiming number-one status. But the brand has spurred multiple rivals, many of which now offer comparable features for a lower price or for free. (TurboTax has responded with its own free online tax-return platform, as have other major players in the industry, such as H&R Block.)
A noteworthy competitor is being marketed by Wealthsimple, the Canadian online investment company whose Wealthsimple Trade online brokerage platform we have reviewed. They recently introduced Wealthsimple Tax, the rebranding of software launched originally in 2012 as Simple Tax, then purchased by Wealthsimple in 2019. It’s an all-in-one tax preparation and filing platform that costs whatever you think is a fair price—even if that price is nothing.
A free service from a company with a $5-billion (with a “b”) market cap—can it really be as good as they claim? We wondered as well, so we set out to learn how Wealthsimple Tax compares with popular long-standing tax-prep software.
Getting started is simple, and you don’t have to be an existing Wealthsimple client to qualify for the free access. First, verify your email address. Then, you enter your personal information (name, address, social insurance number, date of birth), just as you would on any tax-filing form. You also have the option of entering the NETFILE access code from your tax return of the previous year. While this isn’t mandatory, if you don’t include the code you won’t be able to use any information from your previous year’s return to confirm your identity with the Canada Revenue Agency (CRA). If you used SimpleTax in the past, you can import information from a previous year’s return to simplify your 2020 tax prep.
You’re then asked some general questions about your residence, your marital status and/or dependants, and a few other basic things. If you have a CRA My Account, you have the option of signing up to receive email correspondence about the status of your return directly from the CRA.
Once the setup is completed, the platform guides you through each step of building your return. If you need human help at any point, Wealthsimple has its own support staff available.
Upon completion of your return, your refund (or amount owing) is displayed instantly. You have the option of reviewing your return for errors, or to try to optimize your result. You can also save or print your return as a PDF.
No. Wealthsimple Tax is capable of processing even complex returns, so long as they aren’t subject to any NETFILE restrictions.
Paying to use Wealthsimple Tax is entirely voluntary. But if you do choose to pay, and another tax preparer (whether that’s a different online platform or a real-life accountant) calculates a better return, Wealthsimple will refund what you paid. While that’s a reassuring testament to the platform’s belief in its own efficacy, it’s pretty unlikely that you’ll file your tax return with more than one preparer. In short, this isn’t a high-stakes guarantee.
It’s no exaggeration to state there are a lot of tax-prep options out there, even when you automatically discount the ones that lack encouraging user reviews.
TurboTax now offers its own free online version; however, you’ll have to upgrade to the paid version if your return has certain requirements, such as if you want to transfer information from a prior year’s return. H&R Block—possibly the world’s best-known name among professional tax preparers—also has a free platform. But, as with TurboTax, you’ll have to step up to the paid version if you want to transfer last year’s data (and audit protection costs significantly more than with Wealthsimple).
Compared with these high-profile competitors, Wealthsimple Tax appears to offer the largest suite of features and the most intuitive interface. And, unlike many other free platforms we examined, Wealthsimple Tax is fully bilingual for French-language users. (Additional note: Not all tax-prep platforms are designed for mobile use, so be sure to check in advance if you plan to use your phone to build and file your return.)
It is. Once your return is completed, you do have the option of supporting the platform with a payment of any amount—a donation, if you will. If you choose a payment of $0.00, you won’t be penalized in any way and your return will still be filed.
You also have the option of “upgrading” your return for a fee of $30. That entitles you to priority email responses from Wealthsimple’s support team. And if the CRA elects to audit your return, Wealthsimple provides support to guide you through the process. (Many accountants offer this service as well, for a significantly higher price.)
Yes. The platform is certified by both the CRA and Revenu Québec. Plus, Wealthsimple is a Canadian-owned, award-winning company whose online tools have been used millions of times. Wealthsimple’s primary owner, Power Corporation of Canada, is a more than 100-year-old institution with over $450 billion in assets and 30,000 employees.
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Have used Simple Tax (now Wealthsimple Tax) since 2015 and love how easy it is to use. I have employment, investment (dividends, interest, and capital gains), pension, and rental income and have had no problems filing my tax returns each year. I will continue to use this software, so long as it remains up-to-date and easy use.
Wealthsimple Tax is flawed. Specifically, when you try to split dividend income between spouses (ex 25/75), it does NOT do it correctly. Sometimes it does – sometimes it doesn’t. I finally had to switch to Turbo Tax, as I don’t trust their software.
I used this platform to file my taxes. It’s simple, accurate and very friendly. And very flexible on the donation.
You mentioned nothing though about how their terms of service starts they can use they tax data they collect from you for use with 3rd parties.
Wealth Simple is very easy to use. I used Turbo tax before. I find Turbo tax asks too many questions. I highly recommend Wealth Simple.
I used wealthsimple tax for the first time this year and I found it easier to use than turbo tax and it imported more information on my investments and income from the government that turbo tax. Lastly wealthsimple tax found 2 tax savings that Turbo Tax did not do or does not allow, tax credit for Manitoba parents who have children in sports and leisure programs as well as some medical deductions. Thank you to Wealthsimple tax for getting me some additional tax deductions.
I switched a few years back from TurboTax, which had become quite expensive and couldn’t manage a Partnership business properly to UFile, which hasn’t given me a reason for complaint. There’s a deal every year, so you get it a bit cheaper if you buy it early. Like the others, there’s a basic free version. I need the optimization with my spouse and the kiddo’s credits (when they still existed), also Investment income, charitable expenses, RRSPs.
I absolutely love WeathSimple! I’ve tried many other softwares and they all pale in comparison to the ease & simplicity of WealthSimple. In times that I’ve needed Tech support, they’ve been quick to answer and very reliable. I can’t say enough good things about this software. Highly recommend it!
I have used Turbo Tax for years but this year it kept locking up. I used Wealthsimple this year and was extremely pleased. I had a few stock sales and a foreign investment credit and it handled it flawlessly. It also maximized my pension splitting. I also loved that it did not hide things until you pay like Turbo Tax. I voluntarily paid the same amount I would have had to pay Turbo Tax, too cool setting your own payment. Iintend to use Wealthsimple Tax next year.
As a user mentioned on April 13, 2021, Wealth Simple can utilize your personal tax information for marketing purposes. I received an email enquiry from Wealth Simple last year asking what I was going to do with my tax refund, and proposing several alternatives. It raised questions for me about who has access to my personal tax information and what, if any, safeguards are in place, to protect private information.
Love weath simple tax I was very happy
The coding on Wealthsimple is flawed even on simple returns. It gave an error requiring me to enter inaccurate information which resulted in another hard stop and wouldn’t generate my return. Save your time and money and use anything other than this tool.