How will you spend your tax refund?

April 29, 2013 | Teresa

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CRA tax returns stock phto

  • With the final tax filing deadline just a day away, many people are rushing to get the job done.  The majority of returns are being submitted electronically with EFILE and NETFILE.  In an April 19 news release, the Canada Revenue Agency reported that they had received almost 79% of returns or 9.7 million on-line returns. This means money in your pocket sooner, if you are getting a refund.

Hopefully you are one of the lucky individuals, who will receive a tax refund.  With last years average tax refund running around $1,700, the temptation is to splurge and do something nice for yourself - a trip or some big ticket item that you have been eyeing - but the best thing you can do is help yourself financially. 

Some suggestions from Evelyn Jacks, a tax expert and author include:

  • Paying down debt.  If you took out a loan to purchase an RRSP or if you have a high interest loan, consider using some of your refund to pay this down.
  • Getting a jump on next years RRSP contribution.  
  • Consider a TFSA.
  • Contributing to an RESP, if you have children.

And of course it is never too late to begin planning for next year's tax season.  Check out some of these resources to assist you in reducing the bite of the taxman and keeping more of your hard earned money:

 Tax planning 1     Tax planning 2     Tax planning 3

“I like to pay taxes. With them, I buy civilization.”
Oliver Wendell Holmes Jr.

 

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