Wealthsimple Tax Optimizer 101
Optimize your return to make your max refund a sure thing! The Wealthsimple Tax optimizer runs through thousands of calculations to determine how best to claim credits so as to maximize your tax refund.
Married or living common-law? When you prepare yours and your partner’s returns linked together, you can benefit from the optimizer by finding the most optimal claim of your credits across both returns.
How the optimizer works
When you first add optimizable credits and/or deductions, they will be applied in full (even if you don’t benefit from claiming them this year). If you have linked partner returns, the credits/deductions will be applied to one of your returns. You can review the initial allocations in the Optimizations table (in the Summary section).
If you have a linked partner, Generally the credit is applied to the higher-income person’s profile (at the moment the credit is added to the return).
How to apply the optimizer to your return
To optimize your return, complete your return(s), click Check & Optimize, and clear any errors. If the optimizer does not run you may need to click Review & Optimize again, and/or clear any errors from your linked partner’s return.
The optimizer then runs thousands of calculations (using primarily function minimization, for the math folks out there) to determine whether you should claim a credit, split it, or carry it forward to a future year.
If you change any optimizable inputs (e.g., add another donation receipt), that credit (e.g., donations) will go back to its initial state (e.g., applied in full to one return) until you run the optimizer again.