Updated Checked by the Tax-Services.ca editorial team How we check
Tax preparation services file your return with the CRA on your behalf, using certified software, and you stay responsible for what it says. Whether that is worth paying for depends on how tangled your year was. We couldn’t confirm what any service charges, so this page covers how to pick one and check its work.
Is a tax preparation service better than software?
It depends on you, not on the product. Software is cheaper for many people and gives you total control. A preparer is better when you’d rather hand over the pile and be told what’s missing. Both file through the CRA’s electronic systems, and either one leaves you responsible for what the return says.
What does a tax preparation service actually do?
A preparer collects your slips and receipts, enters them into software, and sends the return over the EFILE system. The CRA says a preparer can be a firm, an organization, a discounter or another certified individual. What they all share is a listing in the CRA’s tax preparer directory, which is limited to people certified for EFILE.
That directory is the first place to look. A name that isn’t on it deserves a second question. Our page on checking a tax preparer’s EFILE status explains how.
How to choose tax preparation services
Start with what your year looked like. A T4 job and a bank interest slip is a light return. Rental income, self-employment, a sale of shares or a move between provinces is a heavier one, and you want someone who deals with those often.
Then ask four things before you hand over anything.
- Are you certified for EFILE, and can I see it in the CRA directory?
- What will it cost for my kind of return, in writing, before you start?
- Who do I call in June if the CRA writes to me?
- How will you get access to my CRA account, if at all?
The last one changed recently. From 15 July 2025, the CRA says preparers can no longer request authorization for an individual client through EFILE, so ask how they’ll handle it. See also our guide to choosing a tax preparer.
What happens between your slips and your refund
| Step | What to expect | What you keep |
|---|---|---|
| Hand over information | Slips, receipts, and your updated address and bank details | Copies of everything |
| Review the return | You read the numbers before it’s sent | Your copy of the return |
| Sign Form T183, Part F | This authorizes the preparer to send it electronically | The completed T183 |
| Notice of assessment | The CRA says the notice and any refund usually take about 2 weeks | The notice, for at least 6 years with the slips |
Can you check the return before you sign it?
Yes, and you should. The CRA says the information on the T183 has to match your electronic return, and signing it is your sign-off, not the preparer’s.
You don’t need to redo the whole thing. Run a rough number first. Take a single person in Ontario earning $60,000 from one job, with $9,000 of income tax withheld on the T4. The tax refund calculator gives income tax of $8,320.50 and a refund of $679.50 before credits it doesn’t include. The sum is simple: $9,000 withheld, less $8,320.50 of tax, leaves $679.50.
If a preparer’s total is far from that, it doesn’t mean they’re wrong. Tuition, medical costs or a donation can explain a gap. But it’s a fair question to ask, and a good preparer can answer it in one sentence.
For what leaves your pay each period, the take-home pay calculator works from the same tax data. The income tax calculator splits the bill between federal and provincial tax.
What should you do after the return is filed?
Wait for the notice of assessment, then read it against your copy of the return. The totals should match. If the CRA changed something, the notice explains what and why, and a good preparer will want to see it. Don’t toss it in a drawer.
Put the notice, your slips and the signed T183 in one place. Next February you’ll want last year’s notice anyway, and so will whoever does your return then. It’s the sort of small habit that makes tax time a lot less painful.
Mistakes that turn a paid service into a headache
Choosing on price alone is the common one. A low quote for a return that later needs fixing isn’t cheap.
Another is signing a blank or partial form. Don’t. A third is leaving the deadline to the preparer, when you’re the one who owes the penalty. For the 2025 return the CRA’s dates were 30 April 2026 for most people and 15 June 2026 for the self-employed, with any balance still due on 30 April. For the 2026 return the usual dates are 30 April 2027 and 15 June 2027. We couldn’t find them printed on a CRA page yet, so check it before you rely on them.
What does a slip cost? On $1,000 owing, filing three full months late means a penalty of 5% plus 3%, so $80, before interest. The rates come from the CRA’s interest and penalties page, and the $80 is our arithmetic.
One more thing to be careful about. A preparer who promises a bigger refund than the numbers support, or who wants a share of it, is telling you something about the business. We haven’t verified any firm’s practices, so judge the answers you get.
Sources, and how we checked them
The preparer process, the T183 rules, the authorization change, the dates and the late-filing penalty come from Canada Revenue Agency pages. We re-read the tax preparer and late-filing penalty pages on 13 November 2026. The refund example comes from our calculators, which use 2026 federal and Ontario tax data. No level of government runs or endorses this site.
Frequently asked questions
Where can I confirm a preparer can file my return?
The CRA has a tax preparer directory of people certified for EFILE. If a name is missing from it, ask why before you hand over any documents. A certified preparer files your return electronically, but you still review it, and you sign Form T183, Part F, to authorize the filing.
Do I have to use a preparer?
No. You can file yourself with certified software, or use a free volunteer tax clinic if your return is simple and your income modest. A preparer is worth considering when your year has moving parts, such as rental income, self-employment, a share sale or a move between provinces.
What does a preparer cost?
We couldn't confirm typical fees, and they vary with the complexity of the return. Ask for the price in writing before any work starts, and ask whether it covers a CRA letter or reassessment later. Be wary of anyone who promises a bigger refund than your numbers support or asks for a share of it.
How long until I get my notice of assessment?
The CRA says the notice and any refund are usually processed within about two weeks. Read the notice against your copy of the return when it arrives. If the CRA changed something, the notice explains what and why, and a good preparer will want to see it.
Who pays the penalty if my return is late?
You do, not the preparer. On a balance owing, the CRA adds 5% plus 1% for each full month late, up to 12 months, with interest on top. On $1,000 owing and three months late that is $80 before interest, so confirm the filing date with your preparer in writing.
- How to choose a tax preparer in Canada
Do you need a tax preparer in Canada? How to decide, what a preparer does, the questions to ask before you hire one and where to find free help