Thu. Jul 18th, 2024

Survey Reveals Over 85% of Canadians Struggle with Tax Terminology

A recent survey indicates that more than 85% of Canadians find themselves uncertain about essential tax terminology, shedding light on the challenges many face during tax season.

Conducted by TurboTax, the study discovered that only 14% of Canadians feel “very confident” in their grasp of tax-related terms. Terms like “write-off,” “credit,” “deduction,” and “basic personal amount” often leave individuals perplexed.

Surprisingly, 27% of Canadians have never encountered the term “NETFILE,” a vital aspect of digital tax filing.

The survey also highlights that 50% of Canadians believe intermediate English proficiency is necessary to understand common tax terms.

Moreover, educational gaps are apparent, with only 12% of respondents learning tax terminology in school. Others relied on online platforms (12%), sought guidance from friends or family (16%), or utilized tax filing software (19%) for understanding.

Despite efforts, 42% of respondents expressed only moderate confidence in their ability to file taxes accurately to maximize their returns.

To aid Canadians, TurboTax has compiled a list of key tax terms, including explanations of terms like “CRA,” “credits,” “deductions,” “dependent,” “investment,” and “NETFILE.”

With the tax filing deadline for the 2023 tax year set for April 30, 2024, understanding these terms is crucial.

The survey, conducted on March 21 and 22, polled 1,533 randomly selected Canadian adults. Results were weighted by education, age, gender, and region to align with Census data, yielding a margin of error of plus or minus 2.5% 19 times out of 20.

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