Whether you earn money from work or investments, you usually need to pay tax on your income and fill out income tax returns. You can also get tax deductions from certain expenses. Unfortunately, many people miss legitimate tax deductions they truly deserve. To make sure you get the full tax refund you are entitled to this year, here are some tips you should consider:
Save and organise your receipts
You may spend countless hours tracking down receipts for purchases you made over the previous year during tax time. As a result, you waste time and probably lose hundreds or even thousands of dollars in your refund. Because of this, you should file your invoices and documents and save every relevant receipt.
For instance, whenever you make a work-related purchase, keep your receipts and place them in a folder. If you are working from home, save invoices of the Internet, power, phone, and water and note in a logbook or diary how much time you spend working at home.
Meanwhile, it’s advisable to save receipts if you are unsure whether that expense is deductible or not, then consult your tax consultant for advice.
Claim all the tax deductions you can
Getting a higher tax refund is possible by claiming all the tax deductions you can. Therefore, claim deductions for every work-related expense that you are legally entitled to and costs your employer has not already reimbursed you for. These include tools and equipment, such as Internet bills, meals, travel expenses, and laundry.
Make charitable donations
Stand up for a good cause you care about while lowering your tax bill by making charitable donations. Donating small amounts might not seem like much, but they can add up to hundreds of dollars across the year. Be sure to save your receipts, and then you can eventually claim your tax deductions.
Don’t rely on pre-fill data from the ATO
Filling the fields with pre-filled data from the Australian Taxation Office (ATO) may seem like a shortcut that can help you save time and effort, but it’s actually not. Remember that banks may pass information onto the ATO late, making your data out-of-date. Therefore, it is still better to use your own information as your source data.
Note also that the simplest of mistakes can hold up your tax return. When providing your details, check it multiple times to ensure it is error-free. Check your spelling and grammar, confirm your information, see if it matches your tax file number, and get your bank details right to ensure your funds reach your account.
Hire an expert
Tax can be complicated, especially if you lack knowledge about it. Save yourself the stress and hassle of dealing with this on your own by hiring a tax professional. This way, you can guarantee maximum refunds and ensure you prepare your taxes accurately.
Taking advantage of a bigger tax refund can be challenging, especially if you don’t know where to start and you are worried about getting in trouble with the ATO. Fortunately, you can achieve this and save money in the long run by following these practical tips. You can also seek assistance from experienced tax professionals like us to get the help you need.
If you are looking for skilled accountants in Caloundra, reach out to SMB Accounting. We offer a range of accounting services, and you can reach out to us through in-office appointments, phone interviews, or online submissions. Contact us today!