As an Australian, you want to get the most out of your tax return. It’s essential to claim every deduction you can to maximise your refund.
Your tax refund can be a significant source of cash flow, and by maximising it, you can increase your savings, pay off debts, or invest in your future. Here are some tips to help you get more money back on your tax return.
Claim Every Deduction You Can
Deductions are expenses you can claim on your tax return to reduce the income subject to taxes. The more deductions you claim, the lower your taxable income and the less tax you will have to pay.
It’s important to keep track of all your expenses throughout the year and ensure you have the necessary receipts and records to back up your claims. You should also be aware of all the deductions you may be eligible for, such as charitable donations, business expenses, education expenses, and medical expenses.
Tax Deductions You Can Claim
You can claim many tax deductions on your tax return. Some of the most common deductions include work-related expenses, such as uniforms, tools, and travel expenses. You can also claim deductions for self-education expenses, charitable donations, and income protection insurance.
Prepaid expenses refer to expenses that you have paid in advance for goods or services that you will receive in the future. These expenses can be claimed as a tax deduction in the year they relate to. Examples of prepaid expenses that can be claimed include prepaid rent, interest on a loan, and insurance premiums.
Claiming Donations on Tax Return
If you have donated to a charity during the financial year, it can be claimed as a deduction on your tax return. However, it is crucial to confirm that the charity is registered with the Australian Charities and Not-for-profits Commission (ACNC) and that you have a receipt for the donation.
Claiming Investments That Make a Loss
Some investments may make a loss in a financial year, such as shares or property. If you have made a loss in these investments, it is possible to claim it as a deduction on your tax return. However, some specific rules and conditions apply, and it is advisable to seek professional advice before making any claims.
How to Ensure You’re Contending the Right Tax Deductions
It’s crucial to claim the correct tax deductions to get the most out of your refund. Seeking the guidance of an accountant is the optimal way to achieve this. They can assist you in recognising all the deductions you’re eligible for and guaranteeing you have the required documentation to support your claims.
When considering hiring an accountant, it’s important to exercise caution. Seek out an individual with relevant qualifications and ample experience. You can also inquire about recommendations from trusted friends or colleagues.
Claiming every deduction you can is key to maximising your tax refund. Keep track of all your expenses throughout the year and ensure you have the necessary records and receipts to back up your claims.
In addition, seek the advice of an accountant to identify all the deductions you are entitled to claim. By following these tips, you can get more money back on your tax return and improve your financial situation.
Are you in need of an experienced accountant to handle your tax returns? Look no further than SMB Accounting. Our team of experts has years of experience in tax preparation and can ensure that you receive the maximum return possible. Schedule an appointment with us today, and let us take the stress out of tax season.