Almost half of all Canadians find the idea of preparing their own tax return stressful, according to a study commissioned by UFile, a Canadian-based tax preparation software company, and this could contribute to the continuing trend in Canada to delay tax filing to the last minute and not optimize potential tax write-offs.
According to the report, 45% of Canadians polled admitted that tackling tax return preparation themselves generated a moderate to high degree of stress.
Female respondents indicated more apprehension at the thought of completing their own tax returns than men, with almost twice the number of female respondents choosing the most extreme stress rating as men (11% vs. 6% (6%), respectively).
Canadians still seem to procrastinate doing their taxes for as long as possible, with 44% of respondents stating they’ll file in April — the last month of tax season. This represents a meager four% (4%) improvement over last year, in which 48% said they would choose April as their tax-filing month of choice.
“Clearly, Canadians still feel somewhat overwhelmed by the idea of doing their own tax returns, which may also explain why they tend to wait to the last minute to file their taxes,” observed Joanne Birtch, vp of marketing and new business development at UFile. “Yet, while some Canadians are racking up penalties and interest due to late filing, this procrastination and stress can be minimized in relatively inexpensive ways, such as filing online using an income tax return preparation software like UFile.”
Of those Canadians who actually plan on missing the tax deadline this year, 23% stated it was because they found it “less stressful” to determine what they owe at a later date. Sixteen per cent of this group indicated they simply don’t pay attention to the tax deadline.
Canadians are also continuing the trend of neglecting to note the first day to complete their taxes; according to the study, 69% of respondents weren’t aware of the first day they were eligible to file their taxes — only 1% more were aware this year than last year.
The report also revealed 15% of Canadians either don’t file their tax returns themselves or have never filed a tax return. Furthermore, 13% of Canadians polled reported they knew someone who still has not filed a return for the previous tax year.
Finally, 32% of Canadians report that it is “likely” they are unintentionally overlooking available tax write-offs or exemptions when they file their return. This has actually increased by 4% from last year, demonstrating Canadians aren’t taking measures to optimize their tax return and receive money that is rightly due to them at tax time.
“Most Canadians will likely receive refunds after filing their income tax returns,” added Birtch. “It’s important they not fear tax season, but embrace it, simplify the process and file on time.”
UFile’s 2007 study was conducted by Decima Research January 11th through the 15th, 2007. With a sample size of 1,017 completed surveys, the results can be considered to be accurate within +/-3.1% 19 times out of 20.