Welcome!

News Feed Item

What Are You Planning to Do With Your Tax Refund?

Scotiabank Tax Expert Offers Tips to Make Tax Savings a Year-Round Priority

TORONTO, ON--(Marketwired - May 05, 2014) - Among Canadians who expect to get a tax refund, more than one-third (37%) plan to deposit or reinvest it, followed by one-fifth (18%) who say they will use it to pay off debt, according to Scotiabank's annual Income Tax Refund Poll. Meanwhile, 22% of Canadians don't expect to get an income tax refund at all.

The poll also shows that British Columbians are the most likely to reinvest their tax refund (9%) compared to those in Alberta (1%). Residents in Quebec are significantly more likely to use their refund to pay off debt (25%) compared to residents of B.C. (9%).

Additional findings:

  • Canadians are once again opting to deposit/reinvest their tax refund this year (37% in 2014 vs. 33% in 2013).
  • Fewer Canadians said they do not expect to get a tax refund this year (22% in 2014 vs. 26% in 2013).
  • When it comes to men and women, men (21%) are more likely than women (15%) to pay off debts with their refund, while women (17%) are more likely than men (11%) to pay bills.
  • Fifteen percent of those aged 18-24 are using their tax refund to pay for school/tuition.
  • Those aged 65+ are most likely to put their tax return in the bank (43%) and are least likely to say they are using it to pay off debts (6%).

"Many Canadians rush to file their taxes on time each year and don't think about it until the next year," says Kevin Tran, Director of Tax Advisory at Scotiabank. "Now that you've filed your taxes, it's the perfect time to plan for the next tax year and a great place to start is looking at your Notice of Assessment which summarizes the important information for the year ahead. In addition, meeting with a financial advisor to build a complete financial plan can give you a sense of not only your future cash flow, but also your after-tax cash flow."

Tran offers the following planning strategies Canadians can explore in an effort to reduce taxes for next year and beyond:

  • Take a look at your Notice of Assessment. Your Notice of Assessment summarizes the information from your most recent tax filing and includes a number of important pieces of information for the year ahead such as your Tax Free Savings Account contribution room, quarterly income tax instalment reminders, your RRSP deduction limit, refund interest and any losses being carried forward.
  • Maximize RRSP contributions. Your RRSP remains one of your most powerful tax breaks. Not only do you receive a deduction for the contribution you make, the earnings in your plan compound tax-free. To get the most out of your RRSP, consider "paying yourself first" by setting up a regular investment plan, which will help you maximize your refund for next year.
  • Review tax loss opportunities. If the capital losses in your investment portfolio this taxation year exceed your gains, the net capital loss can be deducted against any capital gains. You are also permitted to carry back net capital losses to the preceding three taxation years and carry them forward indefinitely, which provides you with some tax planning opportunities.
  • Open a Tax-Free Savings Account (TFSA). A TFSA provides another opportunity to save money and have it grow tax-sheltered like an RRSP with the flexibility of a savings account. A TFSA can be opened at age 18 and you can save $5,500 each year.

About the Poll
Data was collected by phone using Nielsen's (formerly Harris/Decima) national telephone omnibus (tVox). A total of 1,021 surveys were collected from March 27-March 29, 2014 with a margin of error of +/-3.1 percentage points 19 times out of 20.

About Scotiabank
Scotiabank is a leading financial services provider in over 55 countries and Canada's most international bank. Through our team of more than 83,000 employees, Scotiabank and its affiliates offer a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking to over 21 million customers. With assets of $783 billion (as at January 31, 2014), Scotiabank trades on the Toronto (TSX: BNS) and New York Exchanges (NYSE: BNS). Scotiabank distributes the Bank's media releases using Marketwired. For more information please visit www.scotiabank.com.

BACKGROUNDER

2014 Plans for Income Tax Refund - By Province and Gender
(Among Canadians who expect to get a tax refund)

                                                                            
----------------------------------------------------------------------------
                 Total                                                      
                 (2014 Atlantic                Man/                         
                  vs.   Canada  Quebec Ontario Sask Alberta B.C. Male Female
                 2013)                                                      
----------------------------------------------------------------------------
Deposit/          37%                                                       
 Reinvest - NET   vs.    26%     32%     38%   43%    41%   41%             
                  33%                                            39%   35%  
----------------------------------------------------------------------------
  Put it in the   27%                                                       
           bank   vs.    22%     19%     28%   31%    38%   26%  29%   25%  
                  24%                                                       
----------------------------------------------------------------------------
    Reinvest it 6% vs.                                                      
                  4%      4%      8%     7%     5%    1%     9%   6%    7%  
----------------------------------------------------------------------------
  Contribute to 4% vs.                                                      
     RRSPs/RSPs   4%      --      5%     3%     6%    2%     6%   4%    3%  
----------------------------------------------------------------------------
Pay off some      18%                                                       
 debts            vs.    17%     25%     18%   17%    23%    9%             
                  20%                                            21%   15%  
----------------------------------------------------------------------------
Pay bills       14% vs                                                      
                  11%    23%      7%     16%   14%    17%   10%  11%   17%  
----------------------------------------------------------------------------
Go shopping/buy 6% vs.                                                      
 some things      5%      5%      4%     8%     3%    2%     7%   6%    6%  
----------------------------------------------------------------------------
Go on a         5% vs.                                                      
 vacation         7%      3%      7%     5%     4%    2%     5%   4%    6%  
----------------------------------------------------------------------------
                                                                            

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
SYS-CON Events announced today that Catchpoint, a leading digital experience intelligence company, has been named “Silver Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Catchpoint Systems is a leading Digital Performance Analytics company that provides unparalleled insight into your customer-critical services to help you consistently deliver an amazing customer experience. Designed for digital business, C...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.