DIY Tax Software, Accountant or Free Clinic? Newcomer Guide

Key takeaways

Simple return (job, benefits, small interest): free software or a free clinic usually fits
Foreign income after arrival, T1135 or self-employment: clinics will not do it; use software carefully or a professional
You are responsible for your return even if someone else prepares it
Refund “discounters” must pay you at least 85% of the first $300 and 95% of the rest, by federal law
Since July 15, 2025, preparers can no longer ask for access to your CRA information through EFILE

Quick answer: which option fits your situation?

Your situation	Free clinic	DIY software	Paid preparer
One Canadian job, arrived mid-year, modest income	Good fit	Good fit	Usually not needed
Student with scholarships and a T2202	Good fit	Good fit	Usually not needed
Interest over $1,200 or capital gains	Not accepted	Possible	Optional
Foreign income after arrival (job, pension, rent)	Not accepted (except U.S. Social Security)	Possible with care	Often worth it in year one
Foreign property over $100,000 (T1135)	Not accepted	Possible with care	Often worth it
Uber, delivery or other self-employment	Not accepted (small T4A exception)	Possible	Often worth it in year one
Unsure of your residency date or status	Ask first	Risky	Good fit
Living in Quebec	Yes, through the Quebec volunteer program	Use software authorized by Revenu Québec	Optional

The clinic rules come from the CRA’s eligibility page. Details are in our free tax clinics guide.

When does doing it yourself make sense?

The tax rules are the same whichever certified product you use. Your result depends on the information you enter, not on the price. For 2025 returns, the CRA lists Better Tax, GenuTax Standard and Wealthsimple Tax as free (Wealthsimple Tax with optional paid services).

DIY works well when you can answer these questions with confidence:

What date did I become a resident of Canada?
What was my income from outside Canada before that date, in Canadian dollars?
Did I earn anything outside Canada after that date, and did I pay foreign tax on it?
Do I own property outside Canada that cost more than $100,000?

Compare products in our tax software comparison or the tax software quiz. Our Wealthsimple Tax review looks at one option in detail.

When does a free clinic make sense?

A volunteer clinic is a good fit if your family income is under the suggested limit and your income is simple. The CRA suggests $40,000 for one person, $55,000 for two and $60,000 for three, plus $5,000 for each extra person. Clinics can adjust these limits.

Clinics help people who do not want to use software, who need help in person, or who want to check they claim every benefit. The trade-off: clinics have limited hours, often in March and April, and they will turn away complex returns.

When is a paid preparer worth it?

A professional can help most when mistakes would be costly or hard to fix. Common newcomer cases:

a business, freelance or gig income in your first year;
rental property or a pension in your home country;
foreign tax paid that you want to claim as a credit (the foreign tax credit);
property abroad that may need a T1135, or you plan to sell it;
a residency question, such as a spouse still living abroad.

The CRA says a tax preparer can be a firm, an organization, a discounter or another individual. Ask who you are dealing with and what their qualifications are. The CRA also keeps a directory of EFILE preparers. There is no official fee schedule for tax preparers, so ask for a written quote before you start.

You can mix options

One option is to pay for help with your first return, then use software in later years. Your first return records your arrival date, carry-forward amounts and the information used for benefits.

What about refund discounters?

A discounter pays you part of your refund right away, then keeps the full refund when the CRA pays it. The federal Tax Rebate Discounting Act sets the least a discounter must pay you:

refund of $300 or less: at least 85% of the refund;
refund over $300: at least $255, plus 95% of the amount over $300.

Worked example: for a $1,000 refund, the minimum you must receive is $255 + 95% × $700 = $255 + $665 = $920. The discounter can keep up to $80. For a $300 refund, you must get at least $255, so the discounter can keep up to $45.

The Canada.ca preparer page says a notice of assessment and any refund are usually processed within about 2 weeks when a preparer files online, so waiting is often the cheaper choice.

How does a preparer get access to your CRA account?

The CRA says that as of July 15, 2025, tax preparers can no longer request authorization for individual clients through EFILE. To give a preparer access, you can:

add your preparer as your representative in your CRA account, or confirm a request they send through the CRA’s Represent a Client service; or
give the preparer details from a notice of assessment you received at least six months ago, so they can request access.

You sign Form T183 to let the preparer file electronically. In your first year you may not have a notice of assessment or a CRA account yet. Ask your preparer how they will handle that. See CRA My Account for newcomers.

Five questions to help you decide

Was all my income from Canada after I arrived? If yes, DIY or a clinic usually fits.
Is my family income under the clinic limit? If yes, and your income is simple, a clinic is free.
Did I earn money abroad, or do I own property abroad? If yes, clinics will not help. Use software that supports foreign income, or get help.
Did I work for myself, including app-based driving? If yes, see our rideshare and delivery tax guide and consider a review.
Do I live in Quebec? If yes, you need help or software for two returns.

Red flags when choosing help

Promises of an unusually large refund. The CRA says this can mean questionable practices.
Offers to add false claims, such as donations, childcare or business losses you did not have.
Refusing to give you a copy of your return.
Asking you to pay through gift cards or cryptocurrency, or contacting you out of the blue. Read our CRA scams guide.

Whoever prepares it, the CRA says you are responsible for the information on your return. Keep your records for at least six years.

Common questions

Is free tax software accurate enough for a newcomer?

Certified products use the same tax rules as paid ones. Accuracy depends on the information you enter, especially your arrival date and pre-arrival income.

Can a free clinic handle my foreign income?

Usually not. The CRA lists foreign income as outside the program, except U.S. Social Security benefits.

How much does an accountant cost?

Fees vary by provider and complexity, and there is no official price list. Ask for a written quote first.

Am I responsible if my preparer makes a mistake?

The CRA says you are responsible for all the information on your return, even if someone else prepares it.

Should I use a refund discounter?

It is legal, but you get less money. By law you receive at least 85% of the first $300 and 95% of the rest.

Sources

Checked against these sources on October 10, 2026. Spotted something out of date? Tell us.

DIY software, accountant or free clinic: which fits a newcomer’s taxes?