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Saturday, March 13, 2004
There's something new in tax software this year -- choice.
For the 2003 tax year, Canadians suddenly have an unprecedented number of software options for completing their tax returns.
Comparisons of tax software used to be a staple personal finance topic, but that changed in the past couple of years as the number of products available in stores dwindled to QuickTax and TaxWiz, both of which were owned by the same company, Intuit Canada.
This year, there are two new tax software programs being sold in stores, UFile and GriffTax Simple. GriffTax is especially noteworthy because it's positioning itself as the bargain in the group.
Lots of people still aren't using tax software, so let's quickly look at the benefits. Most importantly, you're able to plug in your personal data and have the software calculate what you owe or can expect in a refund. Make a change somewhere on the tax form and everything is recalculated for you.
Then, there's the availability of the federal government's Netfile service, where you send your return to Canada Customs and Revenue over the Internet. Filing your return this way instead of using paper cuts the waiting time for your refund down to two weeks from four to six weeks.
It's arguable that tax software is a commodity product in that anything you buy should be able to handle most tax returns. Still, there are large variations in price between the various products and different levels of usability. Let's look at the contenders.
GriffTax Simple
List price: $19.95; number of returns: six (as with most products, there are unlimited returns for those with people with lower incomes).; installation: can be used on any number of computers; Netfile certified: pending.
GriffTax is a newcomer to the mass-market tax software business, but it has long offered a niche product for users of Mackintosh computers. The chief virtue of GriffTax Simple is the low price. Other than that, it doesn't distinguish itself any particular way.
In fact, GriffTax was the clunkiest of the tax software packages looked at here. It's not especially difficult to use, just less fluid and intuitive than the others. There's also no option to plug your personal information into on-screen versions of actual tax forms.
QuickTax
List price: $39.95; number of returns: six; installation: limited to two computers, up from just one last year; Netfile certified: yes.
Aggressive business practices by its parent company have turned some people right off QuickTax, but let's face facts.
This market leader is the slickest software product out there for doing your taxes, as well as the priciest.
QuickTax offers two options for completing your return, an interview process that uses a Q&A format or an on-screen tax form that you fill out on your own.
The tax form method is speediest, but the interview process is worth using if you'd like to be reminded about available tax deductions and credits. Just be ready for periodic nagging on matters like optimizing your contributions to registered retirement savings plans and charitable donations.
QuickTax justifies its high price with the inclusion of QuickWealthPlanner, a $29.95 software package that can help with RRSP planning and some investment calculations. If you only want a basic tax program, then go for the cheaper but still effective UFile or TaxWiz.
Note that QuickTax is sold in a variety of forms, including $59.95 custom versions for investors, small business owners and people interested in retirement planning. All three packages are included in the software, but you can only activate one.
TaxWiz Deluxe
List price: $24.95; number of returns: six; installation: can be used on any number of computers; Netfile certified: yes.
TaxWiz is the lower-cost, fewer-frills offering in the Inuit Canada lineup and it's perfectly adequate for someone who has a routine tax return that involves only adding the right numbers to the on-screen forms.
This software package uses the same question-and-answer or go-it-alone choices as QuickTax, but in a more streamlined way that includes less help and explanatory material. If you've got an uncomplicated return, you probably don't need that stuff, anyway.
UFile
List price: $24.95 (retailing for $19.95 currently); number of returns: 10; installation: up to three computers; Netfile certified: yes.
Quick, clean and easy to use, which is no surprise because UFile is produced by Dr. Tax Software, a company that has produced professional tax software for years.
An interview process is used here and it's such a model of efficiency that you can probably make your way through a simple tax return in just a few minutes.
Copyright © 2004 The Globe and Mail
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