Most Canadian Millennials say they are confident that they are taking advantage of all the tax deductions, credits, or savings available to them.
A survey of 1,252 people between the ages 18 and 34 conducted by Pollara for BMO Nesbitt Burns late last month found that 87% of people in this demographic feel confident about key tax issues.
They are, however, less certain than the Baby Boom generation (those between 50 and 68) about several areas, namely how income is taxed (69% confident, compared to 77% of Boomers), the tax implications of contributing to a Registered Retirement Savings Plan (63%, compared to 75% of Boomers), and the tax implications of contributing to a Tax-Free Savings Account (62%, compared to 72% of Boomers). Millennials are also less sure about how investments are taxed, with just 41% saying they understand how capital gains are taxed and 40% aware of how dividend income is handled.
The BMO study also asked Millennials when and how they plan to file their taxes this year; 53% said they plan to file their taxes before the April 30 deadline, and 44% reported that they had already filed. As for how they manage their returns, 54% said they prepare their own tax returns, with 32% of them relying on tax software rather than a tax professional, family member, or friend.