Do I Need an Accountant to Do My Taxes?

Is it possible to file taxes on your own in Canada?

Absolutely! Filing your taxes on your own can save time and help you better understand your finances. For many Canadians, especially those with more straightforward tax situations (filing T4 and T5 forms and having only a few deductions or credits, for example,) it can be a good learning opportunity.

The Canada Revenue Agency (CRA) offers helpful guides, forms, and FAQs on its website to help you manage your tax information and ensure you don't miss any key documents.

To start, sign up for the CRA's My Account—a secure, online portal where you can manage your tax and benefit information, track refunds and payments, apply for benefits like the Canada Child Benefit (CCB), and update your personal details all in one place. It also provides direct communication with the CRA, making it more convenient and faster than relying on traditional mail. Signing up is easy with a CRA User ID and Password, Sign-In Partner, or a Provincial Partner (in British Columbia or Alberta).

Next, if you feel ready to do the process on your own, TurboTax software is a simple, user-friendly choice for filing online. Plus, you can automatically import your tax information from the CRA directly into TurboTax with the auto-fill my return (AFR) feature—making it even simpler.

What's the difference between a tax preparer and an accountant?

A tax preparer is typically a professional who specializes in processing tax returns with information that you provide. Tax preparers can be good for simple situations and tend to be more affordable. But if your taxes are more complex, an accountant may be a better choice, since they have the expertise to advise you on your tax situation.

A Chartered Professional Accountant (CPA) is a professional who has advanced training in accounting and tax law—and is equipped to handle complicated situations accurately.

When should you consider an accountant for your taxes?

While many people can handle filing their own taxes, some situations are more complicated and may benefit from expert help. These could include:

• Selling assets. If you sell a business, property, or investments, you'll have additional reporting requirements, like capital gains tax.
• Business ownership. Owning one or more businesses or having significant self-employment income requires more layers of knowledge.
• Death of a taxpayer. Managing the tax matters of an estate requires special attention.
• Changing residency. Moving out of province—or out of Canada—can affect your tax situation, especially if you're dealing with taxes both here and abroad.
• Tax elections. Some deductions require you to file an election which may require expert support.
• Splitting eligible deductions. Married or common-law couples may have opportunities to save money through tax credits and income tax options.

If any of these situations apply to you, seeking professional advice may be the way to go. While tax software can help, a professional can ensure that complicated scenarios are filed correctly.

What does an accountant charge to do your taxes?

Cost is something to keep in mind when you're deciding whether to hire an accountant for your taxes. Tax software like TurboTax usually costs between $20 and $100, depending on the service package you choose. Hiring a CPA is more expensive.

A CPA could charge anywhere between $150 to $400 an hour (or more if your taxes are complicated). The cost varies widely, though, depending on the expertise you need, the time of year (the later in the tax year you wait to file, the more it will usually cost), and where the accountants are based—CPAs in major cities might charge more than those in smaller towns.

Consider a hybrid approach: TurboTax Assist & Review

If you're comfortable doing your taxes but still want some expert help, check out TurboTax Assist & Review service. Prepare your taxes on your own using TurboTax software, and then have a tax professional review your return before you file. Connect with a TurboTax expert at any point in the process if you have questions or need additional help. When you're ready to file, this service ensures your return is accurate, checks if you've made the most of available credits and deductions, and confirms that everything is in order.

Assist & Review is one option if you're comfortable with your tax situation but still want that bit of support to ensure everything's in order. Plus, it's more affordable than using an accountant.

The bottom line: Knowing when to ask the experts

In most cases, doing taxes on your own is a great way to save money, especially if your finances are straightforward. But it's important to know when it's time to get some help. If you feel out of your comfort zone because your tax situation is more complicated, opt for a higher-level Turbo Tax package or consider hiring an accountant for peace of mind.

For example, TurboTax Full Service can fully prepare and file your taxes for you. Just upload your slips and receipts to your secure online account, and we'll prepare your return, review it with you, and then file it with the CRA—all without you having to leave the comfort of your home.

The key to success is to make sure you keep track of your tax slips and understand your situation. The more you know about the process, the better equipped you'll be to decide whether to tackle your taxes yourself or hire a pro.

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