Recession DIY: Income Taxes

It's that time of year again. Time to file your income taxes! The deadline is April 30th in Canada... and if you are really a last minute guy, this means you have to electronically submit your taxes by 11:59pm on April 30th. If you're mailing it in, then it has to be postmarked by that date. (Jason, make note of this.)

So you've probably seen "accountant booths" sprouting up at your local shopping mall. If you bring your documentation, they will do your income taxes for a small fee. If your other alternative is to slug away at paper tax forms with your trusty calculator and an HB pencil... then I'd say that paying someone else to do your taxes would be worth the time it saves. However, times are changing... and I believe that most people can (and should) do their own taxes.

Thanks to personal income tax software, filing your taxes is faster and easier than ever before. QuickTax is the big fish in this market. I used QuickTax a few years ago, and it's a solid program. It guides you through a lot of the complicated stuff, and provides intelligent features to optimize your return. QuickTax costs a bit of money to buy, but this year they are offering 3 free versions of their tax software! The first is an online version of Quicktax that is suitable for simple returns. The second is a version for students. The third version is "Quicktax Freedom" which can be used by individuals with incomes of $20K or less with very simple returns. For more details about these free versions, visit the QuickTax website.

A strong newcomer on the personal income tax software scene is StudioTax. StudioTax is completely FREE. I have been using StudioTax to file my taxes for the last few years. It doesn't have all the bells and whistles as QuickTax, but it gets the job done. It's also very easy to use! They have an interface where you basically fill in the numbers from your T4's and T5's into identical fields in the program... then StudioTax handles all the complex math. My tax returns are fairly average, and StudioTax handles it quite well. I filled out and filed my income taxes in a few minutes with this program and recommend it highly. If you want to try it out, visit the StudioTax website.

Obviously, if you have a crazy complex tax return (e.g Own your own business), you should strongly consider enlisting the services of a professional accountant. If you have a very crazy complex tax return (e.g. Own your own illegal business), you should strongly consider calling DioGuardi Tax Law. These are the guys with the television commercials with the dreaded "Taxman" stalking your every movement.

In summary, I encourage you to do your own taxes. In most cases, it will be easier than you think. With the help of programs like QuickTax or StudioTax, you will be able to manage your own taxes. Along with saving a bit of cash instead of having someone else do this for you, you will hopefully pick up some knowledge to de-mystify the income tax filing process. Good luck.