tax-handing-over-money

Confidence runs high for the 90% of Canadians who say their 2013 tax returns will take advantage of all tax deductions, credits and savings available to them, finds a survey by BMO Nesbitt Burns.

Moreover, 70% plan to file their taxes before the April 30 deadline, with 25% having already filed.

Read: Quick tax tips for seniors

Taxpayers are most aware of how their income is taxed generally (77%) and the tax implications of contributing to a Registered Retirement Savings Plan (75%).

However, they’re less confident of their understanding how investments are taxed: 41% are familiar with taxes on capital gains and dividend income.

Read: 7 handy tax return tips from Golombek

What are Canadians planning to do with their refunds?

  • 37% will cover household bills
  • 28% will save or invest
  • 13% will fund vacations or purchase leisure items.
  • 11% will do home renovations.
  • Less than 10% will pay down their mortgages.
  • 3% will donate to charitable causes.

Read: Don’t make estate administration mistakes

Regional Breakdown:

Region % who plan to file their taxes before April 30 % who feel confident about their return % who plan to use their tax return to pay household bills
National 70 90 37
Atlantic 68 88 50
Quebec 63 90 32
Ontario 76 91 37
Prairies 66 89 40
Alberta 71 91 33
B.C. 68 86 38

The survey was conducted by Pollara between March 14th and March 17th, 2014 with an online sample of 1,007 Canadians. The margin of error for a probability sample of this size is ± 3.1%, 19 times out of 20.

Originally published on Advisor.ca

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