First Million Returns Filed: Tax Season 2023 Up and Running

The first 1,256,938 tax returns have already been filed in the 2023 tax filing season and early stats tell us that both average tax refunds and average balances due are rising to unprecedented levels. In an inflationary environment, those are two great reasons to rush to your Tax Services Specialist’s office to get those tax returns done early and then discuss how to plan to make more and save more money – after tax - in 2024.  But there is a third reason too – a looming CRA strike on April 8, a day after strike voting ends.

Review of the February Numbers

For the period February 9 to February 27, the average refund was $2,295 according to the CRA; that would be $4,590 for an average couple.

That’s a lot of outstanding grocery money for the average household!  However, even more shocking though is how must those who owe have to pay: an average of $7,599! 

Returns processed from February 9, 2023 to Feburary Fecruary 27, 2023

Source:  CRA

Industry trends.  Over the years, the tax filing industry has certainly benefited from the CRA’s push to electronic filing.  Now, close to 60% of all returns filed are filed by EFILERs, which includes those who file 10 or more returns for a fee.  It will be interesting to see if recently inflationary trends will have an impact on these numbers.  Certainly the 2023 tax filing stats are trending in the same direction.

This year so far, more do-it-yourselfers using Netfile have filed  – 52.1% – compared to filers using EFILE Services (41.7%).  And there are some paper filers, too – 5.6% - but paper filing does seem to be a thing of the past.  We’ll keep a close eye on that.  Here are the recent filing trends from prior tax seasons:

Total number of returns processed*

Bottom Line: Technology has had a significant impact on the relationship taxpayers have with the CRA. Given that filing a tax return is one of the most important financial transactions of the year for Canadian families, it pays to get it right the first time and get all the refunds and tax credits possible under the law.

Take the time to learn the newest changes if you are doing your own family’s returns this year; and if you are a pro, it’s critical that you and your staff are prepared for the more complicated tax returns that come with a year of significant disruption in personal, financial and economic events.

Additional Educational Resources:

Check out our Certificate Course: Professional Income Tax Course - Entry Level. This is great for beginners and falls under the umbrella of the program: DMA™ - Personal Tax Services Specialist.

Perfect for individuals who want to achieve the credentials needed to file income tax returns professionally out of their home or office. It is also suitable for those who wish to start a new career with a tax preparation, accounting or financial services firms.

For those in the industry checkout: Knowledge Bureau’s Advanced T1 Tax Update Course. Shake out the cobwebs and drill down on the detailed tax theory or “dark horses” as well as all news from CRA and Finance Canada for filing 2022 tax returns.

Ideal for those in the financial industry that want to meet their client’s needs in this already tumultuous 2023. Here’s a look at five out of the 10 lessons you’ll dig into:

2023 ADVANCED T1 TAX UPDATE FOR 2022 RETURNS

• Lesson 1: Intro to T1 Filing and Planning

• Lesson 2: Unique Tax Profilers

• Lesson 3: Family Filing

• Lesson 4: Simple Employment Profiles

• Lesson 5: More Complex Employment Profiles, AND MORE!

Evelyn Jacks is Founder and President of Knowledge Bureau, holds the RWM™, MFA ™, MFA-P™ and DFA-Tax Services Specialist designations and is the best-selling author of 55 books on tax filing, planning and family wealth management.  Follow her on twitter @evelynjacks.

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