IG Wealth Management Tax Season Study: Two-thirds of Canadians Dealing with COVID-related Tax Considerations this Year

Working from home, COVID-related government benefits, and second jobs among the new areas for the 2020 tax year

WINNIPEG, MB, April 15, 2021 /CNW/ - With Canadians in the process of filing their taxes for the first full year since the pandemic hit, IG Wealth Management (IG) today released the results of a study that shows the impact COVID is having on tax filing.

According to the study, which was conducted by Pollara Strategic Insights for IG, almost two-thirds (64 per cent) of Canadians are dealing with pandemic-related tax filing considerations for the 2020 year. In fact:

• 46 per cent of Canadians will have claims related to working from home;
• 45 per cent need to consider the implications of CERB or other COVID-related government benefits; and
• more than a quarter will have to account for taking a part-time job on their tax return as a result of COVID.

The study also found that, of those affected, just one-third are strongly confident in their understanding of how these areas impact them from a taxation perspective.

Canadians Planning to File Before Deadline
More generally, while 94 per cent of all Canadians reported that they are planning to file their returns before the April 30 deadline, less than half are very confident they are taking advantage of all deductions.

"This is a tax season like no other in recent history – so it's not surprising to see that so many of us are unsure about the tax implications of COVID," said Damon Murchison, President & CEO, IG Wealth Management. "It's critical for both individuals and business owners to get a better understanding of tax related issues so that they can minimize taxes and take advantage of all benefits available. If you're unsure of how to approach things, it's important to seek out the help of a financial professional."

Mr. Murchison noted that the study also found that one-third (35 per cent) of Canadians will rely on a professional to prepare their tax return. Of those who plan to file their taxes themselves:

• 44 per cent plan to use tax software;
• seven per cent plan to do so on paper; and
• 13 per cent will have a friend or family member assist them.

"To truly be tax smart – whether you use a professional or prepare your return yourself – you need to make tax planning a year-round activity and consider tax implications when buying or selling property or investing outside your registered accounts.  It's important to take the time to understand your unique situation," Mr. Murchison explained. "At IG Wealth Management, our advisors take a holistic approach to financial planning that includes putting an emphasis on tax planning, which we've identified as a key wealth driver to achieving true financial well-being."

About IG Wealth Management
Founded in 1926, IG Wealth Management is a national leader in delivering personalized financial solutions to Canadians through a network of Consultants located across Canada. In addition to an exclusive family of mutual funds and other investment vehicles, IG offers a wide range of other financial services. IG Wealth Management has nearly $107 billion in assets under management as of March 31, 2021 and is a member of the IGM Financial Inc. (TSX: IGM) group of companies. IGM Financial is one of Canada's leading diversified wealth and asset management companies with approximately $248 billion in total assets under management as of March 31, 2021.

About the Pollara Study
This study was conducted with an online sample of 1,504 adult Canadians between March 26 and 29, 2021.  Results from a random sample of this size can be considered accurate to within ±2.5 per cent, 19 times out of 20. Results have been weighted by gender, age, and region, using the latest census data, to be representative of the Canadian population as a whole.  Where applicable, results are compared to a similar study conducted between April 4 and 9, 2019.

SOURCE IG Wealth Management

Media Contact: Rebecca Ellison, IGM Financial, 647-983-4963, [email protected]