Men More Likely to File Taxes Using Retail Software While Women Worry About Making Mistakes: CRA Study

The Canada Revenue Agency in Ottawa on May 10, 2021. (Adrian Wyld/The Canadian Press)

Men are more likely to file their taxes using off-the-shelf software while women tend to be more concerned about making filing mistakes, and as a result are more likely seek out professional help, says a study by the Canada Revenue Agency (CRA).

“Women are more likely to believe paying for programs and services for people living in Canada is a benefit of filing taxes while men are more likely to believe the benefit is following the rules because everyone should pay taxes,” said the study “Communicating With Youth About Taxes,” obtained by Blacklock’s Reporter.

The findings were based on a survey of 1,001 young Canadian tax filers nationwide aged 18 to 24. It was conducted by polling firm Kantar on behalf of the CRA, to which the federal agency paid $53,515 for the service.

The study noted that men were more likely to file their taxes online using retail software and complain about the lack of free tax advice, while women were “more likely to get help from an accountant or tax professional.”

“Women are more likely to be afraid of making mistakes, cite difficulties in understanding the information and cite not knowing about deductions and credits available,” it said. “Thus it is not surprising to find women are also more interested in learning about tax benefits, credits and deductions.”

‘Knowledge Gap’

The study also found that a need was identified among the youth for a “better understanding of tax structures within Canada and how to file taxes.”

The CRA launched a self-guided online course last March for youth, new residents, and individuals who have never done taxes on their own before.

“Canadians have told us they need help understanding how to do their taxes,” the agency said. “Following public consultations, the CRA also identified a knowledge gap among young Canadians about the role and value of taxes.”

The Kantar study said typical Canadians file their first tax return at age 18, but have asked for assistance. Among the respondents, 30 percent used retail software, 30 percent paid for an accountant or tax preparer, and 25 percent asked a family member for tips.

“Independence in tax filing occurs at varying ages for the youth surveyed with the large majority, 70 percent, filing their taxes independently by the age of 20,” researchers said.

Concerns over filing taxes vary among the youth.

“The primary concern among youth surveyed is the fear of making a mistake (67 percent) while other key concerns include difficulty understanding tax information (39 percent), not knowing the deductions and credits they may be eligible for (38 percent), the cost of getting taxes done (23 percent) and not knowing where to get help or what services are available (21 percent),” the study said.