Personal Finance

Is SimpleTax trustworthy or should I use an offline service?

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Jul 13, 2014
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Is SimpleTax trustworthy or should I use an offline service?

Are any of these tax softwares approved by CRA? Will I get different results if I use different software?
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23 replies
Deal Addict
Aug 28, 2014
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MayorOfToronto wrote: Are any of these tax softwares approved by CRA? Will I get different results if I use different software?
Yes and Yes.

These programs don't let you manually edit your return and instead use a stupid interview system where they ask very basic questions and based on the answers they determine which lines on the return are applicable to you. In my case I get an RRSP through my union payed by my employer which needs to be reported as other employment income and not other income as the programs automatically put it in. Turbo tax free also wasn't using my credits for my RRSP properly and telling me I only had a ~$400 return which wasn't right.... or maybe it was and I'll get audited.
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Apr 2, 2010
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I have used SimpleTax, it should be fine.
Its true there's a benefit to having an offline app, however there are risks both ways since the computer itself could be infected with a virus/malware.

SimpleTax encrypts the data on storage in a way that only we can unlock it to use at the time its filed or when we login, its not like google or something where you can reset your password. In SimpleTax if you forget your password, I understand that you have lost your records, hoping that helps explain the difference.

Also when you file electronically, you end up submitting the tax data (yes its encrypted) but its still sent over the internet.

I see that everything ends up having a risk, I just went ahead with SimpleTax to make things easy.
Hope that helps.
Deal Addict
Jan 10, 2017
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The first bit was answered in the first reply.

For the second part: The backend of all these software use the same template required to be filled out for the CRA, this means the math will always be correct if you or another person enters the same info in the correct boxes.
Tax Software takes these different types of forms and fill them out for you to be submitted.
What makes them different/preferential to people is the human factor, these software have to explain/translate what you most likely have based on questions it asks early on, then has to request the data from you in simplified terms.
Some people like Turbotax because it asks the right questions and people find they get a bigger return, although Turbotax has no benefit mathematically to ever give you a bigger return over any other software or tax accountant, this feels true because people don't enter the correct information in other software that either did not ask the right question or did not make it easy to enter that info.

Most of the paid products prey on users that do not thoroughly understand tax terms or their slips they receive, and why some RFD may prefer these paid solutions over free ones.


TLDR: Paid software may promise bigger returns although that phrase has no merit as the same information given to the CRA is determined by the CRA regardless of software tax submission.

https://www.vox.com/2016/3/29/11320386/ ... t-lobbying
Turbox/Intuit is also against automated tax filing that Canada is so close to doing. The CRA already receives most of our T slips and has set up Auto-filling, one stepping stone away to auto submitting our taxes.
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Jan 15, 2009
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I've been using them for the last 3 years, and every time my CRA assessment matched with SimpleTax. I give them $20 every time since it's definitely a good service.
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Jul 13, 2014
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The CRA does not look at the privacy policies of software developers. It is your responsibility to research these policies before buying or using a software product or web application.

Use of the software, and any omission or error in the information provided, is the responsibility of the user and the developer. Consequently, the CRA cannot be held responsible if programming errors affect the calculation of income tax and benefits payable.
I suppose being approved just means they do the calculations correctly for the most part? We could still be subject to identity theft or misuse of personal information.. but I don't think there's any way around it yet.
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Deal Addict
Jan 16, 2016
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MayorOfToronto wrote: I suppose being approved just means they do the calculations correctly for the most part? We could still be subject to identity theft or misuse of personal information.. but I don't think there's any way around it yet.
Use StudioTax, this downloaded software does not submit your information to any online party other than CRA and is FREE.
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May 12, 2004
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I've been using StudioTax for ages...but this year there was a french consumer magazine that tested 7 different software. They used different profiles for testing various scenarios (single person, family with 2 kids, etc...) with the same amounts for each scenario and got different results. The results they got from "optimizing" family returns also varied.

I'd like to think a popular consumer magazine would have figured out how to use these software properly and had people verify and re-verify the results...anyways food for though.

StudioTax was rated really bad and "to avoid". Even if it was user error it means it's not as straightforward as it should be and the average person may make these mistakes.

There is a paywall but here's the intro for anyone who understands french:
https://www.protegez-vous.ca/Argent/Eva ... s-d-impots

After reading that I used SimpleTax instead of StudioTax this year.
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Jul 17, 2008
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I'd never do my taxes on an online service. Only standalone offline client. The last thing I want is all my personal info stored on someone's sever, ready to be hacked.
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Oct 22, 2015
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TurboTax has a free offline offering too
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Aug 25, 2015
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Victoria, BC
Messerschmitt wrote: I'd never do my taxes on an online service. Only standalone offline client. The last thing I want is all my personal info stored on someone's sever, ready to be hacked.
How about CRA's servers?
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Jul 13, 2014
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plgqnn wrote: How about CRA's servers?
You don't really have much of a choice with that one
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Feb 16, 2009
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Altera wrote: Use StudioTax, this downloaded software does not submit your information to any online party other than CRA and is FREE.
+1 to this. Studiotax is offline. Don't put your data online.
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Jul 13, 2014
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From the StudioTax FAQ
Q.2 - How I can trust my financial information to StudioTax?

YOU DO NOT HAVE TO! We do not ask or keep any personal information about StudioTax users or their computers. It is all happening on your computer. Unlike other tax programs, we do not collect registration information before we let you use our software. The whole idea behind StudioTax is to make you comfortable using a tax software and not coerce you into giving away your valuable personal and financial information.
Sounds promising
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Dec 27, 2009
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Cas77 wrote: I've been using StudioTax for ages...but this year there was a french consumer magazine that tested 7 different software. They used different profiles for testing various scenarios (single person, family with 2 kids, etc...) with the same amounts for each scenario and got different results. The results they got from "optimizing" family returns also varied.

I'd like to think a popular consumer magazine would have figured out how to use these software properly and had people verify and re-verify the results...anyways food for though.

StudioTax was rated really bad and "to avoid". Even if it was user error it means it's not as straightforward as it should be and the average person may make these mistakes.

There is a paywall but here's the intro for anyone who understands french:
https://www.protegez-vous.ca/Argent/Eva ... s-d-impots

After reading that I used SimpleTax instead of StudioTax this year.
I've used both and had no problems ever.
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Jul 13, 2014
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Cas77 wrote: I've been using StudioTax for ages...but this year there was a french consumer magazine that tested 7 different software. They used different profiles for testing various scenarios (single person, family with 2 kids, etc...) with the same amounts for each scenario and got different results. The results they got from "optimizing" family returns also varied.

I'd like to think a popular consumer magazine would have figured out how to use these software properly and had people verify and re-verify the results...anyways food for though.

StudioTax was rated really bad and "to avoid". Even if it was user error it means it's not as straightforward as it should be and the average person may make these mistakes.

There is a paywall but here's the intro for anyone who understands french:
https://www.protegez-vous.ca/Argent/Eva ... s-d-impots

After reading that I used SimpleTax instead of StudioTax this year.
I just tried using StudioTax. It's a little confusing and by the end of it I apparently will receive 1/4 of the return I received last year.

Unless big things changed between 2016 to 2017 there's no way I would lose that much on my return.

Maybe I'll just go with SimpleTax.
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Deal Expert
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Mar 9, 2007
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Think of the Childre…
Used SimplyTax 2 years in a row...and ain't looking back. Was using UFILE prior to that, but paying over $25 bucks, PASS!

WOULD SOMEBODY THINK OF THE CHILDREN!!!
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Jul 13, 2014
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So I just filled out SimpleTax and my return is already over $1k higher than StudioTax and I'm not even done yet LOL

StudioTax needs to be more user friendly.
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