Filing your taxes yourself or with an accountant

Every spring, the same question comes up: Should I file my taxes myself or hire an accountant? In Quebec, this decision is especially important because you have to file two returns: the T1 with the federal government (CRA) and the TP-1 with Revenu Québec, with a deadline of April 30, 2026, for most individuals.

The stakes add up quickly. A forgotten tax credit, a misclassified business expense, or a late filing can cost you real money: the late-filing penalty is 5% of the amount due, plus 1% for each full month of delay, up to 12 months, for both the CRA and Revenu Québec. On the other hand, software costing $40 or less is more than enough when the situation fits on a T4 form.

This comparison is intended for employees wondering if tax software is enough, as well as self-employed individuals, rental property owners, and incorporated entrepreneurs who are juggling Form T2125, the GST and QST, or Form T2 and Form CO-17. We look at the actual costs in 2026, the time involved, the risks, and the break-even point at which hiring an accountant pays for itself.

Filing your own taxes using software approved by the CRA and Revenu Québec remains the most cost-effective option in 2026: ranging from free to about $40 for a standard situation. For an employee with a single T4, a few charitable donation receipts, and an RRSP contribution, the software asks the right questions, files the return through e-File, and you’re all set.

The downside is that the software simply calculates what you enter, nothing more. It won’t tell you that an expense is deductible if you don’t know it is, it won’t plan anything for next year, and if the CRA or Revenu Québec has questions, you’re the one who has to answer them. The time investment is real: expect to spend several hours preparing your two tax returns without making any mistakes.

• Strengths: Minimal cost, total control, and fast when the case is simple.
• Limitations: Without a tax strategy, you risk missing out on tax credits, and in Quebec, you have to navigate two tax returns.
• Who is this for: Employees with a T4 form, students, and retirees with stable income and few tax forms.
• Avoid if: Business income, rental property, active investments, or a corporation.

A vetted accountant does more than just fill in boxes: they identify deductions and credits that software doesn’t suggest, choose the most advantageous CCA, decides between salary and dividends if you’re incorporated, and monitors your GST (5%) and QST (9.975%) obligations as soon as your taxable sales approach the $30,000 threshold.

They also represent you before the CRA and Revenu Québec in the event of an audit, which takes a huge amount of stress off your shoulders. For a self-employed individual or a corporation, their fees are a deductible expense, and the savings often outweigh the cost. As for pricing, the Bankeo Fee Barometer gives you the straight facts based on your industry.

• Strengths: Actual tax optimization, compliance with forms T2125, T2, and CO-17, representation during an audit.
• Limitations: Fees to expect and documents to provide early in the tax season.
• Who is this for: Self-employed individuals, property owners, investors, incorporated companies.
• Bonus: Year-round advice, not just a tax return in the spring.

The rule is simple: the more sources of income you have, the faster hiring an accountant pays off. A late tax return alone costs 5% of the amount owed plus 1% per month, and a missed deduction means money left on the table. Bankeo matches you for free with the ideal accountant for your situation, often within 48 hours, and we’re here to support you year after year.

• Choose the software if If your tax return consists of just a T4 form, a few everyday loans, and no business activity, it’s quick and almost free.
• Choose an accountant if Whether you’re self-employed, a rental property owner, or an active investor: Form T2125, CCA, GST, and QST leave little room for improvisation.
• Don’t hesitate to choose an accountant if If you’re incorporated: the T2 and CO-17 forms can’t be filed using off-the-shelf software, and planning for salaries or dividends is often worth thousands of dollars.

To figure out how much to set aside, rely on the Bankeo Fee Barometer : Based on 1,248 actual tax returns (2024-2026 data), the median is around $3,000 per year, ranging from $500 to $6,000 depending on the industry.

Does an accountant cost more than they save?

Rarely, once your situation goes beyond a simple T4 form. Identifying deductions, choosing the right CCA, and avoiding penalties often offset the accountant’s fees, which are also tax-deductible if you have business or rental income. Add in the time saved and the peace of mind: the math quickly tips in favour of hiring an accountant.

Is tax software reliable?

Yes, software approved by the CRA and Revenu Québec calculates accurately. Their limitation isn’t the calculation, it’s the advice: they process what you enter, without identifying deductible expenses you may be unaware of or planning for the following year. For a simple situation, this is more than enough; beyond that, that’s where an accountant makes a difference.

What is the deadline for filing taxes in 2026?

April 30, 2026, for most individuals, both federally and in Quebec. Self-employed individuals and their spouses have until June 15, 2026, but any balance due must be paid by April 30. Behind on a balance? The penalty is 5% plus 1% per full month, up to 12 months.

Are an accountant’s fees tax-deductible?

Yes, if you have business or rental income: fees related to this income are a deductible expense at both the federal and Quebec levels. For an employee with no other source of income, tax preparation fees are generally not deductible. This is yet another factor that reduces the actual cost of hiring an accountant for self-employed individuals.

Can I file my incorporated company’s tax return on my own?

It’s legal, but rarely a good idea. A company must file a T2 form with the federal government and a CO-17 form in Quebec, along with consistent financial statements and tax choices that impact the future, such as the 9% federal small business deduction on the first $500,000. A vetted accountant helps avoid costly mistakes and optimizes salary and dividends.