Click here to close now.




















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
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.