A Look at E-filing Software - By: Molly Wider

Many Canadians are entrusting their taxes to be filed electronically by software packages. With each new year, more and more of these software programs become available. It leaves many consumers wondering which ones are good in general, as well as which ones are good for them personally. In 2009, 56 per cent of the 26.6 million returns Canadians filed were done so electronically. Only 11.29 million (42.4%) filed the old-fashioned paper way, while 4.63 (17.4%) used Netfile. An additional 10.24 million (38.5%) used Efile while the remaining 445,067 (1.7%) used Telefile.

The convenience of electronic filing vastly outweighs the old paper method. Electronic filing is fast, secure and more accurate. It can also be completed in as few as eight business days with the direct deposit option, whereas the paper method can take anywhere from six to eight weeks for the same results.

These paperless options differ when it comes to how you file your taxes. Efiles are an internet based filing system but is used predominantly by people who prepare tax returns for a living. The less popular version is Telefile, which is used by those who have relatively simple returns. These tax returns are filed using your telephone and an interactive computer program.

Netfile, for instance, is CRA's system. It requires an access code that can be found on the label sheet of your T1 personal income tax package. Once you have your access code, you will then need a certified tax program which CRA provides a list of on their website. The Netfile system allows people to be their own accountants by filing their returns electronically over the internet. Unfortunately, if this is your first time filing income taxes, you will not be able to use the NetFile system.

Some of the approved Netfile software systems are QuickTax, which is the most popular choice of filing amongst Canadians. The basic edition costs around $19.99 for eight returns and is used by people with simple returns. The Standard edition is around $39.99 for the same eight returns and is used by people who have RRSPs or medical claims. The $69.99 Platinum version is used by people who have rental or investment income to report and the $99.99 version is the Unincorporated version, used primarily by those with business taxes to file.

There is also Ufile that can handle self-employment income as well as rental property income, H&R Block, TaxTron as well as countless others that can be used to file your 2009 taxes. Using these software options can be done with ease and accuracy from your home.

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