Wealthsimple Tax vs TurboTax (2024): Which Is Better?

As tax season approaches, more Canadians are considering the option of filing their own taxes, especially those with relatively simple financial situations. Why pay an accountant to handle your taxes if your financial circumstances aren’t overly complex?

Fortunately, there are numerous user-friendly DIY tax programs available, making it convenient to manage your taxes from the comfort of your own home.

TurboTax and Wealthsimple Tax (formerly known as SimpleTax) are two of Canada’s most widely recognized tax software known for simplifying the tax filing process. But how do they compare? What’s the difference, and which one is better suited for your needs?

In this comprehensive review of Wealthsimple Tax vs TurboTax, we’ll dive into each tax program’s features, ease of use, and overall performance. So, if you’re wondering which software has your back this tax season, stick around as we break it all down for you.

A Quick Comparison of Wealthsimple vs TurboTax

What is Wealthsimple Tax?

Wealthsimple Tax, formerly SimpleTax, has been a trusted choice for tax filers since 2012. In 2019, Wealthsimple acquired SimpleTax and subsequently rebranded it as Wealthsimple Tax in 2021. The transition brought a new name and retained the software’s core functionality.

Wealthsimple Tax stands out as a Canadian tax software that offers free usage. That’s right – no need to reach for your wallet. Also, you don’t have to be a Wealthsimple customer to take advantage of its services. 

Wealthsimple Tax is approved by the Canadian Revenue Agency and Revenue Quebec, utilizing the NETFILE system for efficient and secure tax filing. The platform welcomes users from across the country to file their taxes hassle-free.

Pros:

• Wealthsimple Tax doesn’t cost you a dime, offering a budget-friendly way to handle your taxes.
• Seamless tax filing is at your fingertips, with the added benefit of an express Notice Of Assessment and rapid refund processing.
• Wealthsimple Tax caters to a diverse audience, including families, landlords, small-scale business owners, and students.
• Navigating through your tax information becomes a breeze thanks to its intuitive and appealing user interface.
• Store your previous year’s returns within the platform for easy access and reference.
• As a sweetener, you’ll receive a bonus worth $15.
• Both simple and complex tax issues can be effectively tackled using SimpleTax’s capabilities.

Cons:

• Unfortunately, Wealthsimple Tax does not support filing for corporation taxes.
• Downloading a Windows version of the software is not currently available.
• Unlike some alternatives, Wealthsimple Tax does not offer built-in audit protection.

What is TurboTax?

TurboTax is a household name in Canada. Developed by Intuit, the company behind popular tools like Mint and QuickBooks, TurboTax has been in the game since the 1990s.

It offers users different ways to use it depending on their preferences. There’s a free online version for those comfortable with filing independently, a paid downloadable version, and online versions that provide more guidance until you’re ready to submit. 

TurboTax stands out because of its official certification from the Canada Revenue Agency (CRA) and Revenue Quebec. It’s also compatible with NETFILE, an online platform for submitting tax returns and getting faster refunds.

With a track record of serving over 40 million Canadians, TurboTax’s expertise in tax filing is evident. Unlike Wealthsimple Tax, TurboTax isn’t completely free if you want certain add-ons, but its features ensure you get your money’s worth.

Pros:

• TurboTax holds the coveted approval of the Canada Revenue Agency (CRA) for seamless NETFILE submissions nationwide.
• A free version caters to those with straightforward tax returns, ensuring affordability and accessibility.
• TurboTax’s paid versions accommodate a wide spectrum of returns, from basic to intricate, including rental, business income, and investment scenarios.
• Access to live support within the platform assists whenever needed, ensuring a smoother experience.
• TurboTax offers the added security of audit protection, lending peace of mind in case of future inquiries.

Cons:

• While the free version is a boon for many, it’s important to note that support may be limited compared to paid counterparts.
• Opting for premium versions entails a higher cost, which might not align with everyone’s budget.

Wealthsimple Tax vs TurboTax: Fees and Costs

When comparing Wealthsimple Tax vs TurboTax, a crucial aspect to consider is the fees required for each platform. Let’s dissect the fees and costs associated with both, shedding light on the nuances that can impact your decision-making process.

Wealthsimple Tax: Fees and Costs

At first glance, Wealthsimple Tax presents a cost-free option for tax filers. However, a unique aspect here is that Wealthsimple Tax encourages users to contribute to their platform. 

After completing your tax filing, you’re presented with the option to make a voluntary payment. This can reflect what you believe the service is worth or what you can afford. Donations are suggested but entirely optional. This means that, regardless of your tax complexities, using Wealthsimple Tax can be cost-free.

Interestingly, users often contribute between $10 to $20. Even within this range, the cost remains lower than many TurboTax offerings.

Importantly, your contribution doesn’t impact the service level. Wealthsimple Tax ensures consistent quality, irrespective of the amount donated. Your financial support enhances accessibility without compromising service excellence.

TurboTax: Fees and Costs

Conversely, TurboTax follows a tiered pricing model, ensuring that you pay for the level of service that best suits your tax needs. Let’s break down the paid version options available:

1. TurboTax Online (Do it myself)

• Free: $0
• Deluxe: $20.99
• Premier: $34.99
• Self-Employed: $49.99

2. Assist and Review (Do it with me)

• Basic: $49.99 
• Deluxe: $79.99
• Premier: $99.99
• Self-Employed: $129.99

3. Full Service (Do it for me)

• Basic: $89.99 
• Deluxe: $129.99 
• Premier: $179.99
• Self-Employed: $279.99 

Features of Wealthsimple Tax Software

The following are the features you will find on Wealthsimple Tax:

• Wealthsimple Tax ensures you receive the maximum refund possible.
• You have the privilege to choose the amount you want to pay when filing your taxes.
• Easily access previous returns through your account page on the platform.
• You can directly file your income tax return to the CRA and receive a notice of assessment.
• Import your financial details from the CRA for smooth and efficient filing.
• Correct initial mistakes at no cost by filing a modified income tax return.
• Whether it’s rental, investment, or self-employment income, Wealthsimple Tax covers you.
• Wealthsimple Tax adheres to the CRA’s privacy and encryption requirements.
• Witness your refund being automatically calculated as you enter your tax information.
• Experience dynamic and automatic auto-filling of your return.
• Utilize the smart search feature to find credits and deductions tailored to your financial needs.
• Wealthsimple Tax provides recommendations for pension income splitting and donations.
• Discover strategies to maximise your RRSP and achieve the highest possible refund.

Features of TurboTax

The following are the features you can get access to on TurboTax:

• Pricing tiers are available on the platform, ranging from $0 to $50.
• Using NETFILE, you can directly file your income tax return with the CRA. Upon filing, you’ll receive an express Notice of Assessment, and your refund should typically arrive within around eight days.
• Benefit from the instant refund tracker feature.
• Seamlessly link to your CRA My Account and effortlessly import your tax files directly from the Canada Revenue Agency.
• TurboTax provides valuable recommendations on optimizing your RRSP contributions for the best possible refund outcome.
• Effortlessly split your pension with your spouse to minimize taxes, with more details available in our article on income splitting in Canada.
• Receive tailored suggestions for applying credits and deductions while completing the introductory questionnaire.
• Access tax return filing and other tasks conveniently through the mobile platform.
• Opt for expert supervision while filing your return, and even have a professional review it before submission.
• For an additional fee, enlist the expertise of a seasoned tax filer with over a decade of experience to assist with your tax return.
• Leverage the audit defence feature, where a TurboTax expert aids you in comprehending and navigating CRA audits if they arise.
• If you receive a higher refund from another online tax platform, TurboTax provides your copy entirely free of charge.
• For any questions or inquiries, engage with TurboTax’s experts through live chat, delve into their extensive resources, or contact them via phone for personalized support.

Wealthsimple Tax vs TurboTax: Reviews

When comparing Wealthsimple and TurboTax, it’s important to review what others are saying about these platforms. This will provide you with a solid understanding of their differences and assist you in deciding which one better suits your needs.

“I switched from TurboTax to Wealthsimple last year (after 5+ years with Turbotax), really happy with WS” ~ Anonymous

“I’ve used Wealth Simple / Simple Tax for about 5 years. It’s great, very user friendly. I haven’t used TurboTax but would highly recommend WS.” ~ Anonymous

“I had used an accountant for a few years, but he is semi-retired now and scaling back and is getting harder and harder to get service out of, so I decided to try Wealthsimple Tax last year for the first time. It was definitely simple to use. Just as a double check, I did it myself as well, and WS beat me – not by a lot, but any amount of my money coming back to me is a good thing. I liked it well enough that I decided to throw a few bucks their way. Even got a free stock out of it – $17 or something like that. I was impressed enough that I’ll use them again this year.” ~ Anonymous

“I always used TurboTax. Highly recommend. All data carries forward and you can link to your MyCRA account to download T4’s, etc. I assume most of the major players have there features, probably can loose with either but once you choose one they make it very easy/convenient to keep using it.” ~ Anonymous

“I used TurboTax for free last year. If you pay attention and manually go through the quick steps on the left side of the screen, you get the old standard experience. Or you can fill out the forms too” ~ Anonymous

Final Thoughts on Wealthsimple Tax vs TurboTax

As I wrap up this comparison between Wealthsimple Tax Software and TurboTax, it’s clear that both platforms offer unique advantages for different types of tax filers. Whether you’re enticed by Wealthsimple Tax’s pay-what-you-want pricing model or TurboTax’s tiered offerings catering to various tax scenarios, the choice ultimately hinges on your specific needs.

Before you make your decision, take a moment to reflect on the intricacies of your tax situation. Are you a student, a small business owner, or a landlord? Do you prefer a completely free option with potential donations or a structured paid plan? Consider these factors carefully to align your choice with your individual requirements.

Remember, there’s no one-size-fits-all answer – both Wealthsimple Tax and TurboTax provide user-friendly interfaces and reliable services. So, whether you’re pursuing a straightforward tax return or delving into more complex financial landscapes, these platforms are designed to ease your tax-filing journey.

You can also check out our article on the best free tax software in Canada.

FAQs on Wealthsimple Tax vs TurboTax

What is the Best Tax Software in Canada?

It all depends on your needs and your circumstances. If you are new to tax filing and want extra features that will make the process much easier, then TurboTax is your choice.

But if you do not have the money to pay for add-ons and extra features, go for SimpleTax. Remember that having experience in filing tax returns is recommended if you want to use SimpleTax.

Who Owns SimpleTax?

SimpleTax is owned by Wealthsimple. The platform SimpleTax was rebranded as Wealthsimple Tax.

Wealthsimple also provides crypto services. You can read our Wealthsimple crypto review.

Is Wealthsimple Tax or SimpleTax Certified by the CRA?

Wealthsimple Tax (or SimpleTax) is certified/approved by both the CRA and Revenu Quebec (for NETFILE tax filing) in Canada.