Taxes Too Complex For TurboTax?

If you usually use TurboTax to file your taxes but your financial situation is becoming more complicated, you’re not alone. Let’s explore the reasons why you might be considering other options.

Your Taxes Have Become Too Complex For TurboTax

This is the number one reason we hear from new customers that have used Do-It-Yourself (DIY) tax software in the past to prepare their own tax returns. Don’t worry - it’s completely normal! As each year passes, most individuals find that their financial lives become more and more complex. For example, you may have become married (or living common-law) in the past year. Perhaps you bought your first home, or had income and expenses from a rental property. Also, during the pandemic, many Canadians started a side business, meaning they now need to report self-employed or business income to the Canada Revenue Agency. And let’s not forget investing! The average Canadian now has multiple bank and investment accounts, whether they are self-directed or with a brokerage.

You’ve Lost Confidence In Filing Your Taxes

Any of these changes in your financial situation will make filing your taxes more complicated, especially if you were used to being a single person with just T4 employment income in previous years. If two or three of the above changes happen in your life, it quickly becomes overwhelming at tax time to make sure you’ve got everything covered properly.

The Canadian Tax Code Changes Too Often

The Canadian government is not shy when it comes to changing the tax code. Since the income tax system is used to provide many benefits directly to Canadians, it changes frequently to accommodate new legislation, sometimes right before or even during tax season! Unless you are a professional accountant, you probably don’t have the time to keep track of all the changes, which means you can miss out on important updates if you do things by yourself with software like TurboTax.

TurboTax Is Becoming Too Expensive

This may seem counterintuitive at first. After all, there is usually a free version of TurboTax available for very basic tax return filing. But, as your filing complexity increases, so does the price of the software. Furthermore, starting in 2023, TurboTax customers started noticing significant price increases for all versions of the software. In some cases, having a simple requirement such as filing donations increased the price they had to pay. At a certain point, it no longer makes sense to pay higher prices just to do your own taxes. For a similar cost, you can have a professional accountant prepare your taxes for you, saving you time and the anxiety of wondering if you are making mistakes on your tax return.

Conclusion

TurboTax is a suitable option if you have a simple tax return and a high level of confidence in doing your own taxes. But if your financial life is becoming more complex and you are having trouble keeping up with the Canadian tax code, it makes sense to look for professional help. Having a licensed tax accountant prepare your tax return will make sure you take advantage of every available deduction and credit, while reducing your stress level during tax season. If that sums up your situation, definitely check out our 5-star tax preparation service by a professional CPA.