UFile study reveals that, while Canadian families find the cost of raising a child to be high, many may not be taking advantage of existing child and family-related tax incentives
March 5, 2008 – Montreal, Quebec – Many Canadian families across the country feel they could use a bigger break on family-related tax incentives offered to them, but admit to not taking a strategic approach in researching and maximizing existing write-offs. A full 68% of Canadian families surveyed agreed that the cost of raising a child is too high. And while 49% are not satisfied with the family-related tax incentives offered to them, 33% admit they do not know how they will learn of, and correctly apply, family-related tax incentives to their 2007 tax return.
The survey, commissioned by Dr Tax, the Canadian-owned and operated creators of the popular UFile and UFile.ca consumer tax preparation software, suggests that more needs to be done to ensure Canadian families are capitalizing on existing incentives to ease the cost of raising a family. Of Canadian families surveyed, 38% do not use a tax strategy when preparing and filing their taxes and 49% feel they are missing valuable family-related tax write-offs after they file.
The report is based on poll data collected by Harris Decima Research on behalf of UFile. All interviews were conducted among a random representative sample families with at least one child 17 and under across Canada.
“Canadians are clearly looking for some financial relief to help them raise their families,” says Joanne Birtch, Vice-President of Marketing and New Business Development for Dr Tax. “But without a clear tax strategy, including the use of personal tax software like UFile or a tax professional, they may be overlooking family-related tax incentives and write-offs to help ease the financial load.”
When asked how they will ensure they are aware of and correctly applying family-related tax incentives to their 2007 tax return, 33% answered that they do not know, 22% will use an accountant, while the remaining 45% of Canadian families are split between a myriad of methods, including the use of computer software (6%), researching online (6%), reading the tax form (5%) and checking the government website (1%).
Both UFile online and desktop products are making it easier for every Canadian to maximize their tax returns by incorporating and alerting users to all changes, incentives and write-offs for 2007. UFile also offers a unique, step-by-step pension-splitting application for senior couples, and the ability to import previous returns and files from other tax software for free.
Where the Money Goes
When asked to name the single biggest expense to raising their child or children, 43% of Canadian families answered food and clothing, followed by 19% for schooling and 18% for daycare, nanny or other childcare.
Considering these results, it may come as little surprise that 54% of Canadians stated that they would like to see an increase in the Monthly Child Tax Benefit offered to them, followed by incentives or write-offs for Registered Education Savings Plan (RESP) (52%); sports/recreational activities (43%); and daycare (39%).
The cost of raising a child, however, doesn’t seem to deter Canadians from having children, as 61% of Canadian families surveyed stated that cost did not have an impact on the number of children they decided to have or plan to have.
About the Survey
The report is based on poll data collected by Harris Decima Research on behalf of UFile. All interviews were conducted among a random representative sample of 309 families with at least one child 17 and under across Canada. The data was collected from February 14th to 17th, 2008. The results can be considered to be accurate to within +/- 5.6% 19 times out of 20.
Regional data*:
- To what extent do you agree or disagree with the following statement: “The cost of raising a child /children is too high.”
88% of Albertans agree or strongly agree with this statement, followed by B.C. (73%), Atlantic Region (75%), Ontario (71%), Manitoba/Saskatchewan (67%), and Quebec a distant last with (44%).
|
Total |
Atl. |
Que. |
Ont. |
Man./Sask. |
Alb. |
B.C. |
Strongly Agree |
32% |
34% |
21% |
40% |
34% |
34% |
25% |
Agree |
35% |
41% |
23% |
31% |
33% |
53% |
48% |
Disagree |
24% |
21% |
38% |
21% |
23% |
10% |
23% |
Strongly Disagree |
7% |
4% |
17% |
6% |
7% |
2% |
2% |
Don’t know/refused |
1% |
- |
1% |
2% |
3% |
- |
2% |
- Do you use tax strategies to reduce the amount of tax you and your family pay, or to help boost your tax refund?
The Atlantic region lead the nation, with 57% of families surveyed stating “No,” followed by Quebec (51%); B.C. (38%); Ontario (33%); Alberta (29%); and Manitoba/Saskatchewan (19%).
|
Total |
Atl. |
Que. |
Ont. |
Man./Sask. |
Alb. |
B.C. |
Yes |
55% |
43% |
39% |
60% |
81% |
62% |
59% |
No |
38% |
57% |
51% |
33% |
19% |
29% |
38% |
Don’t Know |
6% |
- |
10% |
7% |
- |
9% |
3% |
- In your opinion, how likely is it that you have been missing out on any available family-related tax write-offs or exemptions?
The Atlantic provinces felt they were missing out the most, with 69% of respondents stating that they likely or very likely failed to catch a valuable write-off, followed by Manitoba/Saskatchewan (53%) and Alberta (53%); Ontario (52%); Quebec (44%); and B.C. (35%).
|
Total |
Atl. |
Que. |
Ont. |
Man./Sask. |
Alb. |
B.C. |
Very Likely |
19% |
10% |
19% |
21% |
29% |
18% |
16% |
Likely |
30% |
59% |
25% |
31% |
24% |
35% |
19% |
Unlikely |
24% |
11% |
23% |
27% |
26% |
23% |
25% |
Very Unlikely |
20% |
20% |
18% |
16% |
21% |
20% |
35% |
Don’t know/refused |
7% |
- |
15% |
5% |
- |
4% |
5% |
- To what extent do you agree or disagree with the following statement: “As a parent, I am satisfied with the tax incentives offered to my family”
With 63% of families in Ontario and the Atlantic provinces responding that they disagree or strongly disagree with this statement, they are the least satisfied with the tax incentives offered to them, followed by Alberta (49%); Manitoba/Saskatchewan (40%); B.C. (36%) and Quebec (29%).
|
Total |
Atl. |
Que. |
Ont. |
Man./Sask. |
Alb. |
B.C. |
Strongly Agree |
7% |
7% |
8% |
6% |
7% |
4% |
9% |
Agree |
39% |
30% |
54% |
25% |
44% |
43% |
53% |
Disagree |
28% |
29% |
18% |
35% |
29% |
29% |
18% |
Strongly Disagree |
21% |
34% |
12% |
28% |
11% |
19% |
18% |
Don’t know/refused |
5% |
- |
8% |
5% |
9% |
4% |
2% |
- What is the single biggest expense when raising a child/children?
|
Total |
Atl. |
Que. |
Ont. |
Man./Sask. |
Alb. |
B.C. |
Food/Clothing |
43% |
55% |
49% |
32% |
52% |
45% |
55% |
Schooling |
19% |
4% |
19% |
23% |
14% |
16% |
19% |
Daycare, Nanny or other Childcare |
18% |
18% |
5% |
26% |
23% |
17% |
18% |
Sports |
5% |
7% |
3% |
6% |
7% |
7% |
- |
Dental Care |
1% |
- |
- |
2% |
3% |
- |
- |
Taxes (general) |
1% |
4% |
- |
1% |
- |
- |
3% |
RESP Savings |
1% |
- |
1% |
1% |
- |
- |
- |
Other |
8% |
13% |
14% |
5% |
- |
11% |
- |
Don’t know/refused |
4% |
- |
8% |
3% |
- |
4% |
5% |
- For which of the following would you like to see an increase in tax incentives, refunds or government subsidies?
|
Total |
Atl. |
Que. |
Ont. |
Man./Sask. |
Alb. |
B.C. |
Monthly Child Tax Benefit |
54% |
69% |
34% |
53% |
68% |
65% |
62% |
RESP |
52% |
64% |
40% |
61% |
26% |
57% |
43% |
Sports/Recreational Activities |
43% |
56% |
35% |
44% |
43% |
48% |
40% |
Daycare |
39% |
57% |
21% |
41% |
40% |
57% |
35% |
Other |
2% |
4% |
2% |
- |
6% |
5% |
4% |
Don’t know/refused |
5% |
4% |
7% |
4% |
11% |
2% |
4% |
*In calculating a combined number from the chart, percentages were rounded to the nearest decimal.
About Dr. Tax:
Dr Tax Software Inc. is a privately-owned, Canadian company located in Montreal, Quebec. It is a leading provider of tax preparation products and has served the professional tax community with personal and corporate tax products for over 15 years. Dr Tax's UFile products include Ufile.ca (online tax software), UFile for Windows and UFile Pro. UFile.ca powers the tax centre for Canada's major Web portal, Sympatico.MSN.ca. UFile for Windows is available exclusively at Future Shop, Best Buy and online at www.ufile.ca.
Contact info:
Joanne Birtch
Dr Tax Software Inc.
Tel: (905) 845-0908
Toll Free: 1-800-834-5322
Email: jbirtch@drtax.ca |
