With just hours to go before the deadline to file 2013 income taxes, BMO Nesbitt Burns has released a study revealing that 37 per cent of Canadians who expect to receive a refund this year will use it to cover household bills and/or reduce their overall debt load.
Last year, according to the Canada Revenue Agency, the average individual tax refund received was $1,641.
Canadians also plan to use their tax refunds (or a portion of them) to: save or invest (28 per cent); travel and/or leisure purchases (13 per cent); do home renovations (11 per cent); pay down their mortgage (nine per cent) and donate to charitable causes (three per cent).
“It’s reassuring to know that, of those expecting a tax refund, many will use the money to pay down personal debt or save or invest for the future,” said John Waters, vice president, head of tax & estate planning, BMO Nesbitt Burns. “While everyone’s personal financial situation is different, increasing your overall savings and lowering your debt is generally considered wise money management; it’s important that Canadians make it a priority.”
The survey was conducted by Pollara between March 14 and 17, with an online sample of 1,007 Canadians. The margin of error for a probability sample of this size is plus or minuse 3.1%, 19 times out of 20.