Tax returns are an important aspect of your professional and financial responsibilities. Understanding how to do them just right may just enable you to take advantage of work-related and income-generating expenses for claiming at tax time. Identifying expenses that are acceptable tax deductions will help you reduce your taxable income. Perhaps the expense was directly related to performing your work duties, or you spent money that was never reimbursed by your employer. If you have an official record of the expense, then you may just be eligible to claim something from it at tax time. Here are 7 tax deductions you can possibly claim for your income tax return as a result.
Travelling to and from your usual workplace may not count when claiming expenses, but other work-related vehicle and travel expenses are valid. These include using your personal vehicle to attend conferences and seminars, requiring your car to perform work duties (ex: transporting materials for a minor project), and accommodation expenses when travelling for work is necessary.
Home Office Expenses
Since work from home has become a norm due to the COVID-19 pandemic, you may have found yourself spending plenty of money on your workspace just to do your work. Anything from phone and internet expenses to computer consumables like stationery, printer ink, and paper can be claimed as tax deductions. This is mostly applicable to home office equipment, where you can claim the decline in value for items over $300 or the full cost for those amounting to less than $300.
Industry-Related Expenses and Deductions
When working with tax advisors near you on completing your income returns, be sure to ask about any industry-specific work related expenses that you are eligible to claim. This will vary depending on the industry, so investing in a professional who knows how to get the most out of your work-related deductions using the updated guidelines is extremely valuable.
Work-Related Clothing and Laundry Expenses
While this seems like a stretch, your clothing and laundry expenses may qualify for deduction claims. These are clothing items explicitly purchased for work, including uniforms, protective clothing, daily office wear, and others. Cleaning costs are also included as work-related expenses that you can claim.
Keep in mind that conventional clothing or non-compulsory workwear will not be counted as expenses that can be claimed. You must also provide documentation for these costs, including diary entries and official receipts.
Gifts and Donations
Giving gifts or donations to organisations like charities may also be claimed as a tax deduction, given certain rules. Any contribution made above $2 to a deductible gift recipient can be claimed, while different rules may apply based on types of gifts.
Miscellaneous Work-Related Expenses
Even after you’ve gone through the list, there may be other work-related expenses that only an accountant can help you spot. This is highly dependent on your unique work and personal circumstances. Some of these expenses may include overtime meals, learning material (e.g., books, digital information, periodicals), and union fees.
Claiming investment income tax deductions is possible if you’ve received interest on your savings, dividends from investments, rental payments from an investment property, and others. You may even be able to claim money spent on investment advice.
When it comes to making your claims for deductions during tax time, there are many opportunities that you can take advantage of. Whether it’s miscellaneous work expenses or any gifts and donations you’ve made, there’s a way to make a claim on your tax return where it’s appropriate. Don’t be afraid to ask an accountant to guide you on all the possible claims you can make; this is money you’re entitled to after all. By doing so, you can be as prepared as possible for tax time.
If you need accounting firms in the Sunshine Coast, then SMB Accounting can cater to your needs. We do individual tax returns, small business accounting, SMSF audits, and provide Xero accounting software. Get in touch with SMB tax solutions today for your tax returns and more!