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
In the first article of this three-part series on hybrid cloud security, we discussed the Shared Responsibility Model and examined how the most common attack strategies persist, are amplified, or are mitigated as assets move from data centers to the cloud. Today, we’ll look at some of the unique security challenges that are introduced by public cloud environments. While cloud computing delivers many operational, cost-saving and security benefits, it takes place in a public, shared and on-demand ...
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
SYS-CON Events announced today that CA Technologies has been named “Platinum 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, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, 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. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of pati...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Cloud Academy will exhibit at 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. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, Cloud Expo and @ThingsExpo are two of the most important technology events of the year. Since its launch over eight years ago, Cloud Expo and @ThingsExpo have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, I provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading the...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.