Why do so many people choose free tax filing versus paying to have their taxes done?
During this article we will touch on the differences between these two topics that everyone of us has to decide.
Choosing between free tax filing or paid tax filing
A big population of our country always decides to choose free tax filing over paid tax filing. Many of the reasons include that they think that their tax return is basic and that they don’t need help with their taxes. Others do not want to stress over a high bill when they think they can get the same results. And others like the convenience of filing online and not having to drive or transit to their tax appointment.
"Many think that their tax return is basic, and they don't need any help"
Lets face it filing taxes for free is a cheap and an easy way to file your taxes online. Save money and get your taxes done on your own time. This is the perfect answer and perfectly convenient compared to the latter.
However did you ever wonder if you were ever doing your taxes right?
Did you ever feel that there is a possibility that you have missed something on your return?
Well many people who file on their own and for free come across these
doubts daily. And thank fully this is a normal train of thought.
Using a tax professional can earn you more money
Did you know that there are over 300 deductions waiting for you on the basic personal tax return?
That’s right 300 deductions or more you could possibly be gathering!
Many of us feel we have a basic tax return, but that is because we make it a basic tax return. Lets take a look at a typical basic return:
Some of us have
- T4 (employment)
- Bus Passes
- A couple donations
But with over 300 deductions at our disposal there could be much much more!
"There are over 300 deductions waiting for you to discover"
Tax Accountants today go through school for over 6 years in University to learn all the different tax codes. That is 6 years of schooling more than our average tax preparer.
So why is that it takes so long for them to complete school to do the same task we feel we can do in 20 minutes?
Well maybe there is something we are missing.............
300 deductions You could be missing
Lets take the basic case up top. Since there are 300 deductions available to us lets see what other possibilities there are.
So yes we do have a T4, Bus Passes, donations, and RRSP.
However, how about these other options. Maybe there is a case for these extras:
What type of employment do you have? Would you happen to sell anything at work? Commission employee? Use any expenses like cell phone for work?
As you can see there are many cases to tackle. Here is a new example of the case that you had above:
- T4 (employment)
- Bus Passes
- T2200 form you can receive from employer to write off up to 50 more deductions (very common)
- Cell Phone expenses
- Vehicle Expenses
- Home Office
- RRSP calculations for a new home, pay for school
- Transfer of expenses
- A course you didn’t know that you could use as a deduction
- Professional Dues, Conferences
On and on and on…………
You see many of the population make their taxes basic because they decide to make it basic!
Wealthy people in our country are usually wealthy because of their resources. All of them use an Accountant and a Lawyer. And rightfully so! They gain more money and they save more money in the long run.
"Wealthy people are wealthy because they use all resources available"
On average today many Canadians are losing money on their taxes.
In fact, many people who file alone and for free usually have an average of missed deductions worth about $220 per tax return.
$220! We all could certainly use that money.
The CRA is wanting you to do free tax filing
I am not sure if you have ever seen the CRA website. But they suggest many companies online to help you file alone and for free. Ever wonder why they want you to file by yourself and for free? I am sure you can tell from that statement alone the reason.
Well the less you know, the more of your tax money they keep!
That’s right the less you can deduct, well they keep your $220. Times that by millions of citizens and they are doing quite well!
Protect yourself by filing with an Accountant
Another argument of course for getting professionals to do your taxes over yourself is the easy fact of an audit. Many Canadians are reviewed and audited after their tax return was submitted. Whether it be that you missed a slip of income or you did not enter something in correctly. Sometimes the CRA even audits you on basic things they know you have. If you don’t respond well they add that owing onto your next statement.
As a result, this can be very costly to you when doing this by yourself. In fact many of the online free filing systems such as Simpletax state that you are only liable for your own taxes. So if you make a mistake on their program that is on you and only you.
This can hurt you and cost you lots of money.
"Online free tax filing systems state that you are liable for your own taxes"
As a country we need to be smart and aware of our laws and tax codes. The more we know the better we can do.
We are not here to promote our company or other companies, but we are here to add value. Follow the rich and the wealthy. File with a professional accountant. They have spent many years in school to get the tax codes correctly.
Accufile is here to help!
Whether you go to a local Accountant for $100 for a personal tax return or use our Certified Accountants online for only $25, you are helping yourself make better choices that will help you save more of your money.
In the end, that is what taxes are all about. Writing off as many deductions as we can so that we can keep more of our money.
Accufile uses the best of the 3 worlds to make sure you don’t miss a single deduction on your tax filing.
Our system is revolutionary in today's tax market.
We use algorithms, bots, and Certified Accountants to make sure your taxes are fully optimized. Start with Accufile today.
Choose Accufile to help you keep more of your money!