Trees Win, But Average Tax Refund Up To $1,729

For the 2015 tax filing season, the average Canadian overpaid their taxes by $1,729 during the year—that’s just over $140 a month that’s not going into TFSAs, RRSPs, RESPs, RDSPs, or non-registered accounts to benefit Canadian families in their future.

It’s a lucrative deal for governments, who can fund their operations throughout the year with the $25,930,876,323 prepaid (yes, that’s in billions), based on tax filing stats to June 1.

Electronic banking was the preferred choice of delivery for the tax refunds that were due as a result of that overpaid money—only 39% of Canadians have chosen to receive an actual cheque.

As of May 31, only 17% of Canadians chose to file a paper tax return. EFILE services offered by professionals were used for 55% of returns filed; self-preparation, using NETFILE to deliver the return, was the choice of 28% of filers.

More do-it-yourselfers have moved online this year. As well, the tax preparation community is benefiting from the government’s push towards online filing. Last year, 22% of Canadians filed on paper, 53% used EFILE and 25% used NETFILE.

But the biggest winners are the trees: The waste of paper that accompanied the old filing methods has been significantly reduced!

Evelyn Jacks is President of Knowledge Bureau, a national educational institute focused on excellence in financial education. Follow her on twitter @evelynjacks.