One notable competitor is being marketed by Wealth simply, the Canadian online investment company whose online brokerage platform we have Wealthsimple Trade checked. You recently introduced Simple tax, the rebranding of software originally introduced as Simple Tax in 2012 and then purchased by Wealthsimple in 2019. It’s an all-in-one tax preparation and filing platform that costs whatever you think is a fair price – even if that price is nothing.
A free service from a company with a $ 5 billion market cap (with a “b”) – can it really be as good as they claim? We also asked ourselves, and we wanted to know how Wealthsimple Tax compares with the long-standing tax return software.
How does wealthsimple tax work?
It’s easy to get started and you don’t have to be a Wealthsimple client to qualify for free access. First, check your email address. Then enter your personal data (name, address, social security number, date of birth) as you would on any tax return form. You also have the option of entering the NETFILE access code from your tax return from the previous year. While it’s not required, if you don’t provide the code, you won’t be able to use information from the previous year’s return to verify your identity with the Canada Revenue Agency (CRA). If you’ve used SimpleTax in the past, you can import information from a previous year’s return to make your 2020 tax preparation easier.
You will then be asked some general questions about where you live, your marital status and / or loved ones, and some other basic questions. If you have a CRA My Account, you have the option to log in to receive email correspondence directly from the CRA regarding the status of your return.
Once set up, the platform will walk you through each step of creating your ROI. If at any point you need human help, Wealthsimple has its own support staff.
Once your return is complete, your refund (or amount owed) will be displayed immediately. You have the option to check your return for errors or to try to optimize your result. You can also save your return as a PDF or print it out.
Is Wealthsimple Tax Only For Personal Basic Returns?
No. Wealthsimple Tax is able to process complex returns as long as they are not subject to any NETFILE restrictions.
What does “Your Maximum Refund, Guaranteed” mean?
Payment for using Wealthsimple Tax is completely voluntary. However, if you choose to pay and another tax advisor (regardless of whether it is a different online platform or a real accountant) calculates a better return, Wealthsimple will reimburse the amounts you paid. While this is reassuring evidence of the platform’s belief in its own effectiveness, it is pretty unlikely that you will file your tax return with more than one creator. In short, this is not a guarantee of high stakes.