Filing your own taxes can seem like the easiest and cheapest option. Tax software promises quick refunds, simple steps, and low upfront costs. But for many Canadians, DIY taxes end up costing far more than expected — just not always in obvious ways.
Here’s where the real cost shows up.
Audit Risk: “I Followed the Software” Isn’t a Defense
Most tax software relies on self-reporting. It doesn’t verify whether:
- Your deductions are reasonable
- Your expenses are properly categorized
- Your situation raises CRA red flags
The CRA doesn’t audit software — it audits you.
Common DIY audit triggers include:
- Large or inconsistent deductions
- Employment expenses without proper support
- Self-employment income with minimal expenses
- Repeated changes year over year
When an audit or review happens, the burden of proof is on the taxpayer. That means gathering receipts, responding to CRA requests, and understanding tax law — often months after filing.
An accountant doesn’t just file your return; they help reduce audit risk before it happens and act as a buffer if the CRA comes calling.
Missed Credits and Deductions Add Up Fast
Tax software only works as well as the information you enter. Many credits and deductions are missed simply because people don’t know they exist or don’t realize they apply.
Commonly missed items include:
- Employment-related expenses
- Medical expenses spread across households
- Tuition and education transfers
- Home office deductions
- Carryforward credits from prior years
- Capital cost allowance strategies
Even missing one or two of these can mean leaving hundreds or thousands of dollars on the table.
Accountants don’t just ask what you earned — they ask how you earned it, where you live, how your household is structured, and what changed this year. That context is where real tax savings are found.
Time vs. Savings: The Hidden Cost Nobody Calculates
DIY taxes are often advertised as “cheap,” but that usually ignores the value of your time.
Ask yourself:
- How many hours did you spend gathering documents?
- How long did you spend researching deductions or CRA rules?
- How confident are you that everything was filed correctly?
For business owners, freelancers, and professionals, that time could have been spent:
- Earning income
- Growing a business
- Or simply avoiding unnecessary stress
When mistakes happen, the time cost multiplies — dealing with CRA letters, corrections, penalties, and interest can stretch on for months.
A professionally prepared return isn’t just about saving money — it’s about saving time, reducing stress, and gaining confidence.
When DIY Makes Sense — and When It Doesn’t
DIY taxes can work for very simple situations. But if any of the following apply, professional support is often the smarter (and cheaper) choice:
- Self-employment or side income
- Rental properties
- Employment expenses
- Major life changes (marriage, separation, moving)
- Owing taxes or receiving CRA notices
- Incorporation or business growth
The Bottom Line
DIY taxes often look cheaper on the surface. But once you factor in audit risk, missed savings, and time lost, the true cost can be much higher than expected.
At ME Consulting, we focus on:
- Accuracy and compliance
- Proactive tax planning
- Clear communication with the CRA
- Helping you keep more of what you earn
If you’re unsure whether DIY is really saving you money, a professional review could make all the difference.
Reach out to ME Consulting to book a consultation — before small mistakes become costly ones.
