Frequently Asked Questions About Wealthsimple Tax

Yes, Wealthsimple Tax is completely free tax filing software for all income levels and tax situations. There are no hidden fees, no premium tiers, and no charges for complex returns involving self-employment, investments, or rental properties. Unlike competitors that advertise free filing but charge for state returns or specific forms, Wealthsimple Tax includes everything at no cost. The company operates on a pay-what-you-feel model where satisfied users can optionally contribute after filing, but payment is never required. In 2023, approximately 68% of users filed without paying anything, while others voluntarily contributed an average of $15. This model has proven sustainable while keeping tax filing accessible to everyone, particularly students, low-income filers, and those with unexpected financial hardship.

Yes, Wealthsimple Tax supports filing both federal and state tax returns for all 50 states at no cost. The software automatically determines which state forms you need based on your residency and income sources. If you worked in multiple states during the tax year, the platform handles the allocation of income and credits across jurisdictions correctly. This is particularly valuable since most competitors charge $30-50 per state return. For Canadian users, the software supports all provincial and territorial returns including Quebec's unique provincial system. The platform stays current with tax law changes in all jurisdictions, incorporating updates within days of legislative changes. State e-filing is supported for most states, though a few require paper filing for certain situations, which the software clearly indicates with specific mailing instructions.

Yes, Wealthsimple Tax handles various tax situations including self-employment income, investments, rental properties, and other complex scenarios. For self-employed users, the software supports Schedule C (US) or T2125 (Canada) with comprehensive expense categorization covering everything from vehicle expenses to home office deductions. The platform calculates self-employment tax automatically and determines quarterly estimated tax payment requirements. Investment income support includes capital gains and losses with adjusted cost base tracking, dividend income with proper gross-up calculations, and cryptocurrency transactions. Rental property owners can report income and expenses across multiple properties, claim capital cost allowance on buildings and equipment, and properly allocate expenses between personal and rental use. The software also handles foreign income reporting, moving expenses, alimony payments, and education credits without requiring upgrades or additional fees.

Wealthsimple Tax offers comparable accuracy to TurboTax while maintaining a completely free model. Both platforms achieve over 99% accuracy rates for electronically filed returns according to their respective audit data. The main differences lie in interface approach and pricing rather than calculation accuracy. TurboTax uses a more guided, hand-holding approach with extensive explanations, while Wealthsimple Tax assumes slightly more user knowledge with a cleaner, faster interface. Both platforms guarantee maximum refunds and cover penalties and interest if their software causes errors. TurboTax offers live CPA assistance for premium tiers ($89-209 depending on package), while Wealthsimple Tax provides email support at no cost with typical response times under 4 hours during tax season. For straightforward to moderately complex returns, most users find no practical difference in outcomes, making Wealthsimple Tax's free pricing significantly more attractive. The calculation engines both comply with identical IRS and CRA rules, so mathematical results are essentially equivalent.

Yes, Wealthsimple Tax stores all your filed returns for seven years, accessible anytime through your account dashboard. This matches the CRA's requirement that taxpayers keep records for six years after filing (seven years is recommended for safety). You can view, download, or print PDF copies of complete returns including all schedules and forms. The platform also allows you to file previous years' returns if you missed filing or want to amend returns to claim overlooked deductions. Going back to claim missed credits is common—the CRA allows adjustments up to 10 years back for most situations. If you used different tax software in previous years, you can import those returns into Wealthsimple Tax either by uploading the prior year's file or manually entering key carryforward amounts like RRSP contribution room, capital losses, and tuition credits. This ensures continuity even when switching platforms.

For electronically filed Canadian returns with direct deposit, the CRA typically issues refunds within 8-14 business days, though 92% arrive within two weeks according to CRA statistics. US federal refunds through IRS e-file typically take 10-21 days with direct deposit. Paper-filed returns take significantly longer—6 to 10 weeks for Canada and 6 to 8 weeks for the US. The fastest route is always electronic filing with direct deposit, which Wealthsimple Tax supports by default. You can track your Canadian refund status through the CRA's My Account portal or by calling 1-800-959-8281. For US returns, use the IRS Where's My Refund tool at irs.gov or call 800-829-1954. Refund timing depends on factors beyond the software's control, including return complexity, whether you're claiming certain credits that require additional verification (like EITC), and overall processing volumes at tax agencies. Filing early in the season (February-March) generally results in faster processing than waiting until the April deadline when volumes peak.

Yes, Wealthsimple Tax employs multiple security layers to protect your information. All data transmission uses 256-bit SSL encryption, the same standard banks use for online transactions. Data at rest is encrypted using AES-256 encryption on servers located in Canada subject to strict privacy laws under PIPEDA. The platform requires password authentication with optional two-factor authentication via SMS or authenticator apps, which security experts strongly recommend enabling. Wealthsimple maintains SOC 2 Type II compliance, meaning independent auditors verify security controls annually. Employee access to user data is strictly limited, logged, and monitored. The company has maintained a perfect security record with zero data breaches since 2014 across all products. Your tax information is never sold to third parties or shared with anyone except tax authorities during filing. Wealthsimple is also a CRA-certified EFILE provider, meeting government security standards. For additional peace of mind, you can delete your account and all associated data at any time through account settings, which permanently removes information from Wealthsimple's systems within 30 days.

Yes, you can prepare and file returns for multiple family members from a single Wealthsimple Tax account, which is particularly useful for couples, parents filing for children, or anyone helping elderly relatives. Each family member gets a separate return within your account, and the software keeps all data segregated appropriately. For couples, this setup enables powerful optimization features—the platform automatically tests different scenarios for splitting pension income, allocating medical expenses and charitable donations, and claiming dependents to maximize combined household refunds. You can easily switch between returns using a dropdown menu, and the software carries relevant information between spousal returns automatically (like spousal RRSP contributions or childcare expenses). Each return files independently with its own confirmation number, though you can submit multiple returns in one session. This multi-return capability is completely free with no per-return charges, unlike some competitors that charge for each additional return. The only requirement is that you have authorization from each person whose return you're preparing, as you'll be accessing their personal tax information.

If you discover an error after filing, you can submit an adjustment request through Wealthsimple Tax's built-in amendment feature or directly through the CRA's My Account portal using the ReFILE service. For Canadian returns, ReFILE allows electronic adjustments for most situations within the same tax year. Simply log into your Wealthsimple Tax account, open the filed return, make the necessary corrections, and submit the adjustment electronically. The CRA typically processes adjustments within 8-12 weeks. For US returns, the process requires filing Form 1040-X (Amended U.S. Individual Income Tax Return), which Wealthsimple Tax can help you prepare. Amendments must be paper-filed and take 12-16 weeks to process. Common reasons for amendments include receiving late tax slips, discovering missed deductions, or correcting data entry errors. If the mistake results in owing additional tax, file the amendment as soon as possible to minimize interest charges. If you're claiming an additional refund, you have up to 10 years to request adjustments for most situations under CRA rules, though the IRS typically allows only three years from the original filing deadline.