The majority of millennials (87%) in Canada are confident that they take advantage of all tax deductions, credits or savings available to them, finds a BMO Nesbitt Burns survey.
However, millennials trailed their boomer counterparts in each category measured, as follows:
- how income is taxed (69% of millennials are confident, compared to 77% of boomers);
- the tax implications of contributing to a RRSP (63%, compared to 75%); and
- the tax implications of contributing to a TFSA (62%, compared to 72%).
Additionally, milliennials are less confident in their understanding of how investments are taxed, with only 41% reporting they’re familiar with how capital gains are taxed, and 40% aware of how dividend income is treated from a taxation perspective.
Also, 53% of millennials plan to file their taxes before the April 30 deadline, with 44% reporting they’ve already filed. When filing their taxes, the study found that more than half will prepare their own tax returns. Among those filing their own taxes, 32% will use tax-specific software to file, rather than relying on someone else.