Free Canadian Tax Software
TurboTax Free costs $0. File your simple Canadian tax return for free with no hidden fees.
Follow a simple step-by-step process to fill out your return and our software does the math for you and stores your information to use on next year’s return.
Save time by importing your tax slips into your return from the CRA with Auto-fill my return.
TurboTax Free protects all your personal tax info so you can file your taxes confidently.
Browse our TurboTax Community forum 24/7 or post a tax question for our users and experts.
TurboTax Free is ideal for simple tax situations:
Employment and unemployment income
Why customers love TurboTax Free
Other Circumstances That Require You To File
If you are self-employed, you are required to file taxes if you earned more than $400 in self-employment income.
If you pay special taxes, then you must file even if you dont meet the filing threshold. Special taxes include additional taxes on qualified retirement plans or when you must pay taxes on tips you did not report to your employer.
In addition, you must file taxes if you or anyone in your household enrolled in health coverage through the Healthcare.gov Marketplace and you received premium tax credits in 2021.
If you have special tax considerations, you may want to use the IRS interactive tool to determine whether you need to file.
What Do I Need To File Taxes
Employees need W-2s and non-employees, including contractors or gig workers, need 1099s. These forms will either be mailed to you in February or will be available online through your payroll company.
Freelancers:
Banks are also required to send 1099s to customers who received interest or dividends.
If you still don’t have your W-2 by the tax deadline, you can use the W-2 substitute, Form 4852, and estimate your wages and withheld taxes. Note that the IRS could delay your refund while verifying the information.
You’ll also need your adjusted gross income from the previous year to sign and file your tax return.
Recommended Reading: How To Report Self Employment Income On Taxes
No Matter How You File Block Has Your Back
See What Tax Deductions You Qualify For
Everyday business expenses arent the only deductions self-employed workers can take to reduce their taxable income. If you contribute to a traditional IRA, SEP-IRA or SIMPLE IRA, those payments may also be deductible. The same goes for payments to a health insurance plan for yourself and any dependents.
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When Can I File My Taxes
Each year, the IRS issues a statement in early January with the first day to file taxes.
Typically, the official date when you can file taxes falls in mid to late January.
The IRS announced it will start processing tax returns Feb. 12. Worried about waiting weeks for your refund? We can do your taxes now and when you file at Block, you could get a Refund Advance up to $3,500 today. No waiting on the IRS. No loan fees and 0% interest.
Income Tax Return Filing Dates
- 1 July 2022 to 24 October 2022
- Taxpayers who file online
- Taxpayers who cannot file online can do so at a SARS branch
If you are being auto-assessed, see all the info you need to know on our How does the Auto-Assessment work webpage. If you are not in the auto-assessment group and need to submit a return, see our info for provisional and non-provisional taxpayers on the 2022 Tax Filing Season media release.
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How Far Back Can You Go To File Taxes In Canada
According to the CRA, a taxpayer has 10 years from the end of a calendar year to file an income tax return. The longer you go without filing taxes, the higher the penalties and potential prison term.
Whether you are late by one year, five years, or even ten years, it is crucial that you file immediately. You may think that since you dont have the money to pay your taxes, its best to not file, but this isnt the right move.
The CRA does not forget about you over time. Every day that goes can cost you more money in late-filing penalties, interest, and other potential fees when you delay filing your taxes.
Get An Extension When You Make A Payment
You can also get an extension by paying all or part of your estimated income tax due and indicate that the payment is for an extension using Direct Pay, the Electronic Federal Tax Payment System , or a . This way you wont have to file a separate extension form and you will receive a confirmation number for your records.
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What Tax Documents Do I Need To File Back Taxes
When was the last year you filed? Do you have a copy of that tax return? Do you still have W-2s and other tax documents for the years you didn’t file? You’ll need as many relevant tax documents as you can gather for the years you did not file.
If youre missing past year tax documents, you can request copies from the IRS by filing Form 4506-T, or you can contact your employer or the institution that would have sent them to you.
Keep in mind that current or former employers or other establishments might not still have these documents on file, or at least they may not be easily accessible. There might also be a fee if you choose this option.
At a minimum, youll need Forms W-2 and 1099 for any income you brought in during the year in question, as well as specific tax returns and forms for that tax year. For example, you cant file a 2021 Form 1040 to report 2019 income. You should also gather supporting documentation of anything you spent that year that might be tax deductible or that will qualify you for tax credits, such as bank statements and credit card statements for that period of time.
Does My Stimulus Payment Count As Income
The IRS stated in May 2020 that the economic impact payments provided to Americans under the Coronavirus Aid, Relief, and Economic Security Act and further legislation are not taxable income. There were two stimulus payments administered in 2020, and one in 2021.
You dont have to give any portion of that money back to the government, and it wont reduce your refund if you have one coming to you. Stimulus payments aren’t considered income for other purposes, either, such as eligibility for government benefits or assistance.
Many state governments, including New Jersey and Massachusetts, have indicated that theyre not taxing these stimulus payments, either. You most likely wont have to report the payment you received on your state tax return, but check your states website or confer with a local tax professional to be sure.
There was a third stimulus payment sent out to eligible recipients starting in March 2021. This amount will not be taxed. However, those who did not qualify or did not receive the full amount may be eligible for the Recovery Rebate Credit based on their 2021 income and tax situation. If you’re eligible for a credit and don’t owe taxes this year, your credit will provide a tax refund.
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Do You Need To File This Year
First things first, lets figure out if you even need to file. This will depend on your income, age and filing status. For instance, if youre not married, younger than 65 and your gross income was less than $12,400, you dont need to file this year. On the other hand, if that income was from self-employment, this would be considered a special situation, and youd be required to file your tax return.
Not sure if you need to file? The IRS has a convenient tool to help you determine that. Just answer a few simple questions.
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Can I File My Taxes Online For Free
Yes, and yes. If your return is simple, TurboTax will connect you directly to the CRA through NETFILE, a system that lets you input your tax details and file your return digitally.
A simple return may include a number of common scenarios. Heres a list.
- Employment income
- Caregiver tax credit
- COVID-19 benefits & re-payments
As well, it can also involve additional benefits and credits like the age amount, social assistance, and disability amounts.
Maybe your return is more complicated. Items like claim donations, interest-based income, investment and employment expenses, or anything related to self-employment, may require more expertise.
The good news is you can use one of our other tailored products, like TurboTax Deluxe, Premier, and Self-Employed. Whatever your unique tax situation, we have the product to help you file to perfection.
This year, all of TurboTaxs product options are free for those 25 and under.
This includes all our product options at all levels of assistance, from doing your taxes yourself to using our Live Assist & Review and Full Service options. Well automatically direct you to the service that suits your level of tax complexity so you can file with accuracy and peace of mind.
What Is Irs Free File
The IRS Free File Program is a public-private partnership between the IRS and many tax preparation and filing software industry companies who provide their online tax preparation and filing for free. It provides two ways for taxpayers to prepare and file their federal income tax online for free:
- Guided Tax Preparation provides free online tax preparation and filing at an IRS partner site. Our partners deliver this service at no cost to qualifying taxpayers. Taxpayers whose AGI is $73,000 or less qualify for a free federal tax return.
- Free File Fillable Forms are electronic federal tax forms, equivalent to a paper 1040 form. You should know how to prepare your own tax return using form instructions and IRS publications if needed. It provides a free option to taxpayers whose income is greater than $73,000.
Find what you need to get started, your protections and security, available forms and more about IRS Free File below.
IRS Free File Program offers the most commonly filed forms and schedules for taxpayers.
Other income
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Free File Available January 14
IRS Free File will open January 14 when participating providers will accept completed returns and hold them until they can be filed electronically with the IRS. Many commercial tax preparation software companies and tax professionals will also be accepting and preparing tax returns before January 24 to submit the returns when the IRS systems open.
The IRS strongly encourages people to file their tax returns electronically to minimize errors and for faster refunds as well having all the information they need to file an accurate return to avoid delays. The IRS’s Free File program allows taxpayers who made $73,000 or less in 2021 to file their taxes electronically for free using software provided by commercial tax filing companies. More information will be available on Free File later this week.
Understand How Your Taxes Are Determined
The government decides how much tax you owe by dividing your taxable income into chunks also known as tax brackets and each chunk gets taxed at the corresponding tax rate. The beauty of this is that no matter which bracket youre in, you wont pay that tax rate on your entire income.
The progressive tax system in the United States means that people with higher taxable incomes are subject to higher federal income tax rates, and people with lower taxable incomes are subject to lower federal income tax rates.
» MORE:Make sure you’re not overlooking any of these 20 popular tax breaks
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Which Documents Do I Need When I File My Taxes
Preparing your tax return will be easier if the tax documents you need are organized and readily available:
- A copy of last years tax return
- Letter 6419 if you received any early Child Tax Credit payments
- Income source documents: Forms W-2, W-2G, 1099-MISC, 1099-NEC, 1099-G, 1099-SSA, 1099-R, etc.
- Interest and dividend statements from banks, brokerages, etc.: 1099-INT, 1099-DIV
- Bank routing and account numbers
- The amount you paid for childcare and the childcare providers tax identification number
- Form 1098 from your mortgage lender
- Other less common tax reporting forms you may receive, such as 1099-A, 1099-B, 1099-C, 1099-K, 1099-OID, 1099-Q, 1099-S, 1099-SA
- Receipts for charitable donations
- Drivers license state of issuance, expiration date, and license number
Top 5 Reasons To File Your Taxes Early
OVERVIEW
Every year, many taxpayers wait until the last minute to file their federal income tax returns. Despite this tendency, there are many reasons to file your taxes early. If you will receive a refund, you may want to submit your return as quickly as possible. Additionally, there are benefits to filing early for those taxpayers who have a balance due.
For information on the third coronavirus relief package, please visit our American Rescue Plan: What Does it Mean for You and a Third Stimulus Check blog post.
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After You File Your Tax Return
Get your notice of assessment, find out the status of your refund, or make a change to your tax return
To provide feedback on your filing experience or any other CRA service, go to Submit service feedback – Canada.ca
To formally dispute your notice of assessment or reassessment, credit or benefit decision, you may want to file a notice of objection. To find out if this option is right for you, go to File an objection
Why File For An Extension
Filing an extension automatically pushes back the tax filing deadline and protects you from possible failure-to-file and penalties. Penalties for filing late can mount up at a rate of 5% of the amount of tax due for each month that you’re late.
- For example, if you owe $2,500 and are three months late, the late-filing penalty would be $375. x 3 = $375
- If you’re more than 60 days late, the minimum penalty is $100 or 100% of the tax due with the return, whichever is less.
- Filing for the extension wipes out the penalty file by the extension deadline.
TurboTax Easy Extension is a fast and easy way to file your extension, right from your computer.
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How Can I File And Pay My Back Taxes
Its best to use reliable and easy-to-use software if you’re going to prepare your tax returns yourself. Plan on spending a few hours on each tax return you have to file. There are tax software programs that can help you for free.
Again, make sure youre using software and forms for the appropriate tax year. Regulations vary from year to year, and the software settings can be critical for compliance as well as your liabilities or refund.
You might get a better result by hiring an experienced tax professional because they can help you with more complicated tax compliance and know how to deal with the IRS, if necessary.
Look for someone with significant experience in preparing back taxes if you decide to use the services of a professional. This would be the way to go if you need advice on handling incompletetax documentation, or an advocate who will negotiate with the IRS on your behalf.
Youll need to print out the back tax returns and mail them in to the IRS to officially file them. You cant do it online.
