Financial Literacy Includes Tax Literacy

 Last week's release of the Task Force on Financial Literacy's report to the Finance Minister included 30 recommendations to enable taxpayers to maximize their knowledge, skills and confidence in dealing with their finances, including the a greater uptake in government programs designed to assist Canadians. Some of those programs are initiated by filing a tax return, which is complicated for most.

"Every year millions of Canadians miss making RRSP contributions, which in turn can reduce their Canada Child Tax Benefits, GTS/HST Credits or other non-refundable tax credits on the return,î says Evelyn Jacks, author of 46 books on tax and personal finance including the 6^th edition of Essential Tax Facts. "Failing to file a tax return will also mean you'll miss creating TFSA contribution room, and that results in a missed opportunity to build tax free investment earnings. Lucrative deductions like moving expenses or credits like medical expenses and disability amounts are common misses, too. Tax Literacy is therefore a very important subset of financial literacy.î

Mrs. Jacks, President of Knowledge Bureau, was a member of the Task Force on Financial Literacy and included a quiz to help Canadians test their Tax IQ in her book this year. The Task Force's report, entitled Canadians and Their Money can be downloaded here.

Mrs. Jacks predicts the significance of the report will begin to unfold soon as stakeholders interested in improving Canada's financial literacy embrace the opportunity to collaborate, share responsibility, and begin a process of lifelong learning in the implementation of its 30 recommendations. Among these recommendations are outreach initiatives to promote awareness of social programs, professional development opportunities for teachers, and workplace training and communication. There is a place, too for highly informed tax and financial professionals to expand their role as educators in working with their clients.

"It was an honor and a privilege to serve on this Task Force,î said Mrs. Jacks. "We met many passionate people including dedicated individuals from all the advisory services, authors, private educators, associations and organizations of all sizes--all sincere in their offer to help Canadians better understand their financial options. Whereas last week the report was soundly applauded for its strategy and framework, now the important work can begin, and what better time than tax season to do so?î

ADDITIONAL EDUCATIONAL RESOURCES: Master Your Personal Finance Book Series;  Books by Evelyn Jacks, including Essential Tax Facts, Master Your Taxes, Make Sure It's Deductible, Get Your People to Work Like They Mean It, and many more can be found at Chapters Indigo;Amazon;the Knowledge Bureau and and in better bookstores everywhere.