Doing my 2012 Taxes with Turbo Tax
For the past several years, I have done my taxes using the Turbo Tax software. (Before that, I was a strictly pencil and paper tax form person! Oh the mistakes I made…) I like it for it’s simplicity, ease of use and relatively quick turnover. You can use the software via the online portal and not pay for it until after you have completed your taxes. Usually it’s a pretty straight-forward process, but this year, I ran into a few hiccups.
Photo Credit: 401(K) 2013 via Flickr
Home Buyer’s Plan
It should not have been complicated. I had my T4RSP (this is the slip that indicates withdrawals from an RRSP) and I knew that I had plenty of money in my RRSPs at the time – far more than the $4000 that I took out. But Turbo Tax wanted to know (1) my contributions for the 89 day period prior to my HBP withdrawal and (2) the fair market value of my RRSP after my withdrawal. (1) was not so hard to figure out because I contribute a set amount each month, but (2) was more difficult. I had no idea how much my RRSP was worth immediately following my withdrawal. I mean, the value changes every day. After consulting with the bank, we decided to estimate it based on my contributions that month and the previous balance, minus the withdrawal.
Transit Pass Credit
The government of Canada also offers a public transit tax credit for people who buy a monthly (or longer) transit pass. I buy a transit pass every month, so this is great for me. However, for the longest time, I couldn’t figure out how to claim it using Turbo Tax! I checked off the checkbox that asked me, “Do you have a monthly transit pass?” but even after going through the process three times, the software did not prompt me to enter in my transit ticket amounts. Grrrr!
I was getting very frustrated and was almost ready to give up on Turbo Tax. I decided to try again a few days later and (despite doing exactly the same thing) it magically worked and prompted me to enter in my total transit amounts. Hooray!
I’m not sure why it didn’t work before. Perhaps it was because I hadn’t entered in all of my T4s yet? I’m just glad that it works now.
Should you use Turbo Tax?
Despite a few initial set backs, my taxes are now DONE! I just need to review my paperwork one last time and then send it off. This year, the government of Canada is encouraging everyone to file electronically using their new streamlined system. Apparently, you don’t need anything more than your SIN and your birth date. I usually send in a paper return, but I may try their electronic option and see if I get my refund more quickly.
If you have a relatively simple tax return, Turbo Tax is a good option. A standard return costs $17.99 per return. For students, as long as your total income is less than a certain amount, your return is free to complete.
Have you used Turbo Tax or any other tax software? Anyone else done their taxes yet?
I always used H & R Block’s platform and it worked well for us. We actually hired a CPA last year and he has been great. We just got our finalized last week.
I haven’t had to use an accountant yet (or the H&R Block software), but in a few years when things get more complicated, I might opt for that route.
For the past couple year’s I’ve used Ufile. It’s easy, and actually cheaper than Turbotax.
I haven’t used Ufile either! I didn’t know it was cheaper. Might investigate that next year.
Congrats on getting the taxes done. I only wish I could have mine done but mine are fairly complicated with two LLC businesses things can get overwhelming. However I have talked to my accountant and she said I’m likely going to see a refund this year which is completely unheard of for most business owners.
Nice! As long as you don’t have to pay extra taxes, life is good.
I just filed my taxes last week. I’ve been using Turbo Tax for the last 13 years! The only beef I have with them is every year I get the same questions that I think Turbo Tax should be able to figure out from last years return. Things like, How much AMT carryover did you have last year?” drive me nuts! But I’ll still keep using them.
Okay, I wondered if that was just me – glad it’s not. I have no idea why they make me enter that information in again
I’ve used Turbo Tax since 2008 – has always worked out fine for me (I don’t have a complex tax situation). Do you have Tax Act in Canada? I’ve also heard good things about that program.
I think it might be for American taxes online. Maybe a Canadian version will be in the works one day.
We use H&R Block’s free software. Although because of an error with my data, we cannot e-file. We do paper and pencil for state taxes though because I don’t feel like wasting $20 to save half an hour’s time.
This will be the first year that I efile actually. :S
I used to do my taxes by hand, but I like the convenience of the software too much now, haha.
I’ve used H&R block and Turbo tax and have good luck with both. This year we used H&R block and were able to state file for free.
Nice! Yeah I’ve been hearing more and more people using H&R Block’s software. Might have to check it out next year.
I did my taxes this year with TurboTax as well and had a great experience. I was able to claim all my credits and deductions as expected and ended up getting a much larger return then I was hoping for! Cant Complain!
Always great when your return is bigger than expected. I had a decent return as well, though I’m hoping for more next year if I can ramp up my RRSP savings.
Thanks for this! Good to know about the specifics. Great post.
Thanks
I’m a TaxAct man myself. I’ve been using them for almost 10 years. They are super cheap $17.95 for Federal and State. Their service is also very “TurboTax” like.
You’re the 2nd person to mention TaxAct. I haven’t heard of it until now, though I haven’t seen a Canadian version of it yet.
I love turbo tax. I know things can get a little complicated but I like the challenge of figuring it all out. I actually am giving away 5 free copies of turbo tax deluxe/premier on my blog right now.
Nice giveaway! My link in the blog is actually NOT a referral link, lol. That would have required me to be prepared BEFORE writing the post
Nope, never used Turbo Tax but would like to. I still have to do our taxes and it will be the first time to do it on my own. Wish me luck!
Good luck!! Hopefully your family’s taxes will not be too complicated!
Ah, I’m a little too late. Maybe give Studiotax a shot next year for free! It’s a downloadable software onto your hard drive, so it’s not web based like Turbotax. Free in my books is golden. I’ve been filing with them for the past three years and no problems from CRA. I used to be a Turbotax customer but I didn’t like how they increased their prices over the years.