Tax Return Tips Every Taxpayer Needs to Know
More than 12 million Australians need to lodge their tax return every year. Most of them will go through it easily. But for some it may be delayed due to minor errors. In fact, in 2016 the ATO had to contact over 350,000 taxpayers to fix their mistakes. So, are you planning to lodge your own tax return or use an agent? Here are seven top tips we have listed to get your tax refund easy and right at the first time.
1. Manage your tax receipts
Even though keeping a track of your receipts sounds easy, so many people lose track of receipts each year and are unable to recall. Every time you incur a work-related expense or make a work-related purchase, make sure you file the receipt, documentation or invoice carefully either in a folder or upload them online. Then, when it comes to lodge your tax return, you’ll have a file with all the tax-deductible items and receipts in one place.
2. Seek the advice of a professional
More than 74 per cent of Australians use a tax agent (such as www.mytaxrefundtoday.com.au/ ) to review and prepare their tax return. Using a tax agent means you’ve got a skilled professional accountant to help you with your tax return, check whether it’s correct or not as well as look for extra deductions you could claim to increase your refund. Meanwhile a tax agent helps you to avoid trouble with the ATO and helps to handle it if any complication arises.
3. Sweat the small stuff to boost your tax refund
A $15 donation to charity or a $5 pen might not seem like much at the time, but each of these small stuffs across one year can total to hundreds of dollars. And all the amounts you claim as deductions can improve your tax refund. For example, keeping track of just $6 worth of expenses per week across a whole year could rise the refund of taxpayer earning $50,000 a year by $100. So, you can see how, if it’s a bunch of $30 or $50 receipts you’re forgetting about, you could miss out on $1,000 or more in your tax refund. Therefore, get organised with your receipts for small purchases during the year and it’ll pay off in the long run.
4. Claim your work-related expenses
You may be able to claim a tax deduction for expenses related to your job – Such as, you can claim a deduction for the cost of your hat, sunscreen and sunglasses if you work outdoors like construction worker, traffic controller, etc.
There are different rules depending on your job but generally you will need to satisfy the three golden rules:
- you must have spent the money yourself and not been reimbursed,
- the expense must be related to your work
- you must have a record to prove the expense.
5. Fix mistakes as soon as possible
People worry about making mistakes while lodging their tax return. If you think you have made a mistake or forgot to include something on your tax return, let ATO or your agent know that as soon as possible. Also, you can amend your tax return by accessing ATO online services via your myGov account. If you lodged using a tax agent, all you must do is contact them.
6. Declare your fair share
It is possible that you may be part of the sharing economy without knowing it. If you earn money from odd jobs such as, transporting passengers or renting out a room or house, it counts as assessable income and you will need to declare it on your tax return.
7. Patience is a virtue
Each year ATO receive and match over 650 million transactions to the information provided in tax returns. For many people, this means all they have to do is double-check the information we have pre-filled for them, enter any deductions they have and then hit submit. ATO expect to receive most pre-fill information by August, which means if you can wait until then, completing your own tax return should be even quicker and easier, and you’ll be far less likely to make a mistake.
The seven tax return tips which we mentioned can help you to boost your tax return. Claiming tax deductions reduces your taxable income, meaning you’ll pay less tax and hopefully get a bigger tax return. There are many complex deductions you can claim to reduce your taxable income. There is one method to ensure you’re claiming all the eligible deductions is, by getting a professional to do it for you. A tax agent will know the ins and outs of the tax system and will help you maximize your tax return.
Fill in the form HERE to have an expert will call you and get your same-day refund*, or if you have an questions relate to MyTax 2018 and mygov, Online tax return 2018, you can contact us by calling 1300 698 297 Or email us at email@example.com.