It’s a fair question, and coming from a tax firm, you might expect the answer to be “yes, always.” It isn’t.
Plenty of Canadians file their own taxes every year without any trouble. Plenty of others try it, miss something, and spend the next year sorting it out with the CRA. The difference usually isn’t intelligence or effort. It’s how complicated their situation is, and whether they know which parts of their return need extra care.
So here’s an honest look at when you can comfortably file on your own, when paying for help tends to be worth it, and how to tell the difference before you start.
The short answer
No, you’re not legally required to use an accountant to file your personal taxes in Canada. You can file yourself using CRA-certified software, file on paper, or in some cases file for free through a volunteer clinic.
One thing worth knowing up front: whoever prepares your return, you’re still the one responsible for what’s on it. If an accountant makes a mistake, the CRA reassesses you, not them. That’s part of why choosing the right help matters as much as the decision to get help at all.
When you probably don’t need an accountant
If your tax situation looks something like this, filing yourself is usually perfectly reasonable:
- You have one or two T4 slips from employment
- Maybe a T5 for a bit of bank interest
- RRSP contributions, and a few common credits like donations or transit to school
- No business, rental or foreign income
- Nothing major changed in your life this year
For a return like this, NETFILE-certified software does most of the work. If you use the CRA’s Auto-fill my return feature, the software pulls in many of your slips directly from the CRA, which cuts down on typing errors and forgotten slips.
If your income is modest and your situation is simple, there are free options too. Community Volunteer Income Tax Program clinics, run by volunteers in partnership with the CRA, prepare returns for free for eligible people. Some people with low or fixed incomes also receive an invitation from the CRA to file through its SimpleFile service.
In these cases, paying an accountant may save you some time and stress, but it probably won’t change your refund much. That’s the honest answer.
When an accountant usually pays for itself
Things change once your return has more moving parts. These are the situations where we most often see people either leave money behind or run into problems with the CRA.
You’re self-employed or earn gig income
This is the clearest case. Self-employed returns involve a T2125 business statement, decisions about which expenses are deductible and in what proportion, vehicle and home office calculations, CPP contributions on both the employee and employer side, possibly GST/HST, and instalment planning for next year.
The CRA also looks at self-employed returns more closely than employee returns. Getting expenses right isn’t just about claiming more. It’s about claiming correctly, with records that would hold up if you’re asked. Our self-employed tax filing and gig workers tax services are built around exactly these issues.
You own a rental property
Rental income brings in questions that software can’t really answer for you. Is that new roof a repair or a capital improvement? Should you claim capital cost allowance this year, given it can affect you when you sell? How do you split expenses if you rent out a basement in your own home? These decisions have consequences that last for years.
You sold investments, property or crypto
Capital gains reporting depends on your adjusted cost base, which is often not on any slip. If you’ve reinvested dividends, bought the same stock at different prices, or traded crypto between coins, working out the right number takes real care. Mistakes here go both ways. Some people overpay, and some underreport without realizing.
Selling a home is another one. Even when the principal residence exemption means you owe nothing, the sale still has to be reported correctly.
You have foreign income or assets
Foreign pensions, overseas bank accounts, rental property abroad, or shares held through a foreign broker all need reporting in Canadian dollars. If your foreign property cost more than $100,000 in total at any point in the year, you also have to file Form T1135. The penalties for missing that form can apply even when you owe no tax at all.
You’re new to Canada, or leaving
The year you arrive and the year you leave are both part-year residency returns, with their own rules about which income is taxed and which credits you can claim. Getting the first return right also sets up your benefit payments properly from the start.
Something big happened in your life
Marriage, separation, a new baby, a death in the family, retirement. Each of these affects credits, benefits and sometimes how income is split between spouses. A final return for someone who has passed away is its own specialized filing, often with elective returns that can reduce the tax owing.
You’re retired or close to it
Pension income splitting, RRIF withdrawals, CPP and OAS timing, and the OAS recovery tax for higher-income seniors all interact. Small decisions can change a couple’s combined tax bill by a meaningful amount, and that’s where year-round tax planning tends to earn its keep.
You’re behind on filing, or the CRA has contacted you
If you have several years unfiled, or you’ve received a review letter, a reassessment or an audit notice, it’s usually worth getting professional help. Responding correctly and on time matters, and deadlines like the 90-day window to file a Notice of Objection don’t wait. You can read more about how we handle this on our CRA audit support page.
What an accountant actually does for you
A common assumption is that an accountant just types your slips into software, the same way you would. For a good one, data entry is the smallest part of the job.
The real value is in the review. Does this return make sense compared to last year? Is there a slip missing? Should these medical expenses go on your spouse’s return instead? Is there unused tuition from five years ago sitting on your Notice of Assessment? Would it make sense to defer this RRSP deduction to a higher-income year? Software will ask you questions, but it won’t notice what you didn’t tell it.
An accountant can also be authorized to deal with the CRA on your behalf through the CRA’s Represent a Client service. If a letter shows up in October asking about your claim, you have someone who already knows your file and can respond for you.
And honestly, a lot of clients just value having someone to ask. Should I register for HST? Is it time to incorporate? What happens if I sell my rental next year? Questions like these come up all year, not just in April.
What about the cost?
Fees vary widely depending on the complexity of your return and who you work with. A straightforward employee return costs much less than a self-employed return with a vehicle, home office and HST filings, or a return with rental properties and capital gains.
A few things worth knowing about fees:
Fees for preparing a basic personal return generally aren’t tax-deductible. But accounting fees related to earning business or rental income usually are, as are fees you pay for help objecting to a CRA assessment. So for self-employed people and landlords, part of the cost often comes back.
Be wary of any preparer who charges a percentage of your refund. That arrangement rewards them for making your refund bigger, which isn’t always the same thing as making it right.
The fairer way to think about cost is to compare it to what’s at stake. If you’re filing a single T4, an accountant’s fee might be hard to justify. If you’re self-employed, a missed deduction or an expense claimed incorrectly can easily cost more than the fee.
Accountant, CPA or tax preparer: what’s the difference?
This confuses a lot of people, and it’s worth being clear about.
In Canada, you don’t need a professional licence to prepare personal tax returns for others. That means the person doing your taxes could be anyone from a seasonal preparer to an experienced tax specialist to a Chartered Professional Accountant.
The CPA designation is a protected professional title with its own education, exam and ethics requirements. Many CPAs work in tax, but not all of them do, and plenty of highly experienced tax professionals aren’t CPAs.
Separately, the CRA runs an EFILE program for people and firms who file returns electronically for clients. To be accepted into EFILE, preparers go through a CRA screening process, and they’re expected to follow the program’s rules. It’s not a quality guarantee, but it is a basic sign that a preparer is set up to file returns professionally.
What matters most in practice is experience with situations like yours. If you’re a rideshare driver, ask how many rideshare returns they prepare. If you own rentals, ask about rental clients. Their answer will tell you a lot.
How to choose someone you can trust
Some good questions to ask before you hand over your documents:
- How much experience do you have with returns like mine?
- How do you charge, and will I get a quote before you start?
- Will I review the return before it’s filed?
- How do I send you documents securely, and how do you protect my SIN and personal information?
- Are you available if the CRA contacts me later in the year?
And a few red flags:
- Promising a refund amount before they’ve seen your documents
- Suggesting you claim things you don’t have receipts for
- Asking you to sign a blank or incomplete form
- Wanting your refund deposited into their account
- Not giving you a copy of your filed return
- Not asking you any questions at all
That last one is underrated. A preparer who doesn’t ask about your year isn’t really reviewing anything.
A middle ground
It doesn’t have to be all or nothing. Some people file their own simple returns most years and bring in a professional only in years when something changes, like the year they start a side business, buy a rental, sell a property or retire.
Others file themselves but pay for a one-time review of prior years to see whether anything was missed. Since the CRA generally lets you request changes for returns going back 10 years, that review can sometimes turn up money you didn’t know you were owed. If you’re not sure where your own return stands, our article on common tax mistakes Canadians make is a good place to start checking.
Frequently asked questions
Is it worth paying an accountant for a simple tax return?
Often not. If you have a single T4 and a few common credits, certified software or a free volunteer clinic will usually do the job. The value of an accountant grows as your situation gets more complicated.
Can an accountant get me a bigger refund?
Only by making sure you claim everything you’re actually entitled to and that it’s split between spouses in the best way. No legitimate preparer can create a refund out of nothing, and you should be cautious of anyone who promises one.
What do I need to bring to an accountant?
Your slips, receipts, last year’s Notice of Assessment and any letters from the CRA. Our tax documents checklist lists everything by situation.
Can I use an accountant if I’m not in the same city?
Yes. Most tax work today is done entirely online, with documents uploaded securely and returns filed electronically. You don’t need to meet in person.
Talk it through with us
If you’re not sure whether your situation needs a professional, ask. We’re happy to tell you honestly if your return is simple enough to do on your own. Taxwala is based in Waterloo, Ontario and works with clients across Waterloo Region and the rest of Canada online. You can learn more about our personal tax filing service, start with our secure Tax Intake Form, or book a free consultation.
This article is general information about Canadian tax and isn’t advice for your specific situation. Programs, rules and amounts change, so confirm the details with a tax professional or the CRA.