Survey finds 33% of Canadians confident enough to maximize tax breaks

Ahead of the deadline to file your taxes, most Canadians don’t think they are leveraging all of the tax breaks available to them.

 

In a press release Thursday, IG Wealth Management released findings from its annual tax study, finding that only 33 per cent of respondents were “very confident” they are taking advantage of all possible tax breaks.

 

“Prioritizing tax planning outside of tax season alone can help lessen your tax bill, maximize available tax credits and deductions, and ultimately, allow you to build and keep more of your wealth,” Damon Murchison, the president and CEO at IG Wealth Management, said in a press release Thursday.

 

Additionally, 57 per cent of respondents indicated they see the importance of tax planning throughout the entire year. However, only 27 per cent of Canadians said they make tax planning a priority throughout the year, the study said, potentially resulting in some leaving money on the table.

“Canadians can benefit from year-round tax planning and ideally their tax strategy should be wrapped into their overall financial plan,” Murchison said.

 

The survey also examined the awareness of tax implications stemming from major purchases, like a home, second property, car or home renovation.

 

The survey found that only one-third of respondents said they considered tax implications ahead of a major purchase. Additionally, 17 per cent of respondents indicated familiarity with how life events like marriage, having children, retiring or passing on their estate can impact their taxes.

 

“It’s a concern that many lack understanding of the tax implications of major purchases and life changes,” Murchison said.

 

Methodology:

Results were derived from an online sample of 1,229 adult Canadians between Feb. 15 and Feb. 28.

 

 

 

This article was first reported by BNN Bloomberg