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Home > ONLINE TAX PREPARATION > Taxing Time Online
The Province (Vancouver, BC)
Sunday, March 16, 2003
Section: Money
Byline: Brian Lewis
Get set for taxing time online
Arrrgh! It's taxation time again.
Time to sort out all those crumpled receipts randomly tossed into an old shoebox or drawer during the year so that you can prepare and file your income tax return before the April 30 deadline.
This year, Canada Customs and Revenue Agency (CCRA formerly Revenue Canada) expects that just over 23 million returns will be filed and, while the majority -- about 60 per cent -- are being sent via "snail" mail, an increasing number of returns are filed electronically(NetFiling).
For tax filers who prefer to prepare their own returns, this means utilizing the CCRA's relatively new NetFile service by using one of a number of CCRA-approved tax preparation software programs.
To use a NetFile-approved product you'll need the personal four-digit access code that should have been included on the package of tax-return documents you recently received.
If you don't have a current access code then call the NetFile help desk at 1-800-714-7257. Your tax software package will help you set up your return for NetFile and additional help is available on the NetFile website -- www.netfile.gc.ca
This is the third year that NetFile is available. Spokesman Sam Papadopoulos says the CCRA is expecting approximately four million tax returns via NetFile, compared with 2.5 million last year and about one million during its trial first year.
Another six million Canadians had their returns filed electronically last year but these forms were prepared by tax filing companies and accountants.
A further 550,000 returns were sent in via telephone, Papadopoulos adds.
That means about nine million returns in all were filed electronically, or about 40 per cent of the roughly 23 million in total returns.
"Unfortunately, many of the 60 per cent in paper returns are still prepared by taxfilers on home computers using tax software, which are then printed and mailed," he says.
"I suspect one reason is because of concerns over security. But our 128-bit encryption is just as secure as banking on the Internet."
This year, five software companies have their software certified for the 2003 NetFile program that will accept filings of 2002 tax returns.
Here's a rundown:
Dr. Tax Software Inc. has provided tax software to accountants for more than a decade and now has consumer tax software available on the web at a cost of $12.95 for an individual and $19.95 for a family. For returns with total income of $20,000 or less, there's no charge. For additional returns from the same family, it's only $7.95 each.
The website: www.ufile.ca
(EDITOR'S NOTE: Ufile also has a French version at www.impotweb.ca with the same prices.)
- QUICKTAX
No doubt about it, QuickTax is the market-share leader.
And this year Intuit Canada, the Edmonton-based unit of the California software corporation, has introduced three customized software programs aimed at specific markets -- those retired or who are about to retire, small business operators and investors.
The Small Business, Retirement Planning and Investor's editions each sell for a suggested retail price of $59.95 and add considerably more ability to handle special situations in each of these categories.
If you're a heavy stock trader, for example, the Investor's Edition will simplify the capital-gains procedure.
However, QuickTax Standard edition ($29.95, after a $10 rebate) is adequate for most of us and this year it can handle up to six returns for family members as well as unlimited returns for members of the same family who have an income of less than $25,000.
And for those who want it all, the QuickTax Platinum edition ($79.95) includes all the above packages.
The cheapest way to file via Quicktax is to use QuickTaxWeb, which is $19.95 for a single return or $24.95 for you and your spouse.
If your income is under $20,000 the return is free and -- new this year -- if you have to pay tax, QuickTaxWeb is free.
"Our customers told us they want more solutions uniquely tailored to their needs and that's why we've produced the custom editions," says QuickTax business unit manager Chris Wilkinson.
"But all the editions this year are more family-friendly," he adds.
Wilkinson admits that the emergence of NetFile has been a boon to the tax software industry. "It's been a big boost for everyone and more people are embracing the idea that you don't have to lick a stamp and an envelope any more."
The website: www.quicktax.ca
- TAXWIZ
If you've been a faithful TaxWiz, sorry but it's now owned by Intuit, which took over this Canadian company last fall.
But TaxWiz is still producing its own brand this year. It sells for $24.99 and also allows up to six individual returns.
For previous users the price is $21.00 plus tax, and returns are unlimited for those showing earnings under $25,000.
TaxWiz can be downloaded from the web as well.
The website: www.taxwiz.ca
- GRIFFTAX
If your tax situation is simple -- that is you don't have dividend, rental or self-employment income, for example -- then GriffTax is worth a look. Your download is free, but it'll cost you $5.00 to file to NetFile using GriffTax Simple, which is only available for Windows computers. The company makes excellent MacIntosh software as well. The website: www.grifftax.ca
- MY TAXEXPRESS
Another free-software download site, it then charges $12.99 (tax included) for up to 10 returns. You can also prepare unlimited returns for taxpayers who earn under $25,000 annually.
It only supports returns for taxpayers in B.C., Alberta and Ontario this year.
The website: www.mytaxexpress.com
© Copyright 2003 The Vancouver Province
Edition: Final
Story Type: Finance
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