IG Wealth Management Tax Study: More Than One-Third of Canadians Feel They're Leaving Money on the Table This Tax Season

• 96 per cent of Canadians plan to file their tax returns before May 2^nd deadline
• 72 per cent will claim appropriate Covid-related tax benefits
• Just 17 per cent describe tax planning as a full year activity
• 60 per cent expect to get a tax refund; average amount expected to be $2,400

WINNIPEG, MB, April 28, 2022 /CNW/ - With the May 2^nd deadline fast approaching for most Canadians to file their 2021 tax returns, IG Wealth Management (IG) today released the findings of a study that shows many are concerned that they are leaving money on the table this year.  Further, they are expressing doubt as to whether they are taking full advantage of all the tax benefits available to them.

The study, conducted in partnership with Pollara Strategic Insights, found that more than one-third (36 per cent) of filers feel they are not doing their taxes efficiently and are leaving dollars on the table. Other key findings include:

• Ninety-six per cent of Canadians plan to file their 2021 tax returns before the deadline (up 2 per cent from last year).
• Under half (40 per cent) feel very confident they are taking advantage of all tax deductions that are available to them.
• 72 per cent are confident they will claim appropriate Covid-related tax deductions while just 50 per cent reported having a good understanding of them.

"Our study clearly shows that the overwhelming majority of Canadians are being responsible and intend to file their taxes before the deadline," said Damon Murchison, President and CEO, IG Wealth Management.  "However, the findings also reveal that many may not be preparing their tax returns in the most efficient manner and remain unclear about many tax-related matters." 

"Given the complexity of the tax rules, it's a good idea for Canadians to seek out the assistance of a professional who can help with tax filing. But tax filing is not tax planning, so they should also work with an advisor to develop an overall tax strategy as part of a comprehensive financial plan.  Every dollar you don't have to pay in tax can go towards building your investments and savings and help you reach your financial goals faster," added Murchison.

Tax Planning- Thinking Beyond Deadlines

The study also found that less than half of Canadians consider tax planning throughout the year, with just 17 per cent describing it as a full year activity. 

"Many of us only think about income tax related issues during the last quarter of the calendar year," noted Mr. Murchison.  "Making it a regular activity has many advantages, including ensuring you have all key documents and receipts, are able to defer and minimize taxes based on the tax deductions and credits available to you, and not being in a position to have to scramble at the last minute to get organized and file before the deadline."

Tax Refunds- Savings and Travel

One other area the study examined was tax refunds.  Sixty percent of respondents stated they expected to get a tax refund for the 2021 tax year.  The average refund is expected to be approximately $2,400.  In terms of what they were planning to use the money for, the top identified activities included:

• save and/or invest (29 per cent);
• travel (14 per cent);
• home renovations (9 per cent); and
• pay down a mortgage (6 per cent).

About IG Wealth Management

Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of advisors located across Canada. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has $116.3 billion in assets under advisement as of March 31, 2022 and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's leading diversified wealth and asset management companies with approximately $268.3 billion in total assets under management and advisement as of March 31, 2022.

About the Pollara Study

This study was conducted with an online sample of 1,501 adult Canadians between March 31^st and April 7^th, 2022.  Results from a random sample of this size can be considered accurate to within ±2.5 per cent, 19 times out of 20. Results have been weighted by gender, age, and region, using the latest census data, to be representative of the Canadian population as a whole. 

SOURCE IG Wealth Management

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