If you believe that you always receive the full amount of your tax refund, you might be mistaken. After all, there are always more ways to increase the size of your tax refund.
The Australian tax system imposes numerous restrictions on the sorts of deductions that are allowable. The procedure of seeking tax deductions might be complicated, but help is available.
During tax season, here are a few simple techniques to help you save money. Read on to discover what to know about boosting your tax refund today.
Consult with Your Trusted Tax Agent
By now, you must be aware of all of the tax breaks available to you and the expenditures associated with your job. If not, it might be time to consult with your tax advisor.
According to data published by the Australian Taxation Office, more than 70% of Australians employ the services of tax agents such as Etax.com.au. If you question your tax advisor about tax-deductible expenses and what you are allowed to claim, he or she may be able to provide deductions that you were not previously aware of.
Remember, expenses related to one’s job, such as a home office, mobile phone, car, union dues, and other work-related expenses, are tax deductible. Simply taking advantage of one more deduction might improve your tax refund by hundreds of dollars.
Use ATO App to Help You Organise and Store Your Receipts
Keep all of your receipts so you can claim more tax deductions and receive a larger refund. Yes, this also means receipts for money spent on things related to your job so that you can deduct it from your taxes. This is critical!
This can be done simply by downloading the ATO App, scrolling down until you see the option to “Add deductions or receipts you have for the following year’s tax return” on the welcome screen, and then pressing the “Add” button. You can just attach files such as receipts and papers.
Etax is Australia’s most popular online tax agent service year after year because users are certain they will receive a larger refund if they use the service.
Reimburse or Claim All Work-Related Costs
You may be able to deduct a percentage of your annual mobile phone charges if you use your phone for business-related calls, searches, purchases, and emails.
A calculator, as well as a “regular” monthly account statement, are required to compute the deductible that is applied to your monthly mobile phone bill. Determine what proportion of your overall calls are work-related, and then deduct that amount from your total annual expense.
For example, the rising cost of mobile phones may result in higher tax returns. If you have a $660 annual mobile phone bill and 40% of your calls are related to business, you may be entitled to deduct $264 in expenses related to using your mobile phone for work on your tax return. As a result, a $60,000 return might increase by more than $70.
You have also gotten a training course that was subsidised by your employer. If you stayed overnight, your employer was supposed to provide you with food and lodging. You may have also had to purchase textbooks, a certificate, or your own laptop computer. These are the kinds of items that mount up over time, yet are sometimes overlooked when submitting tax returns.
Taxes are never easy to talk about, especially when you do not know where to start. Thankfully, with the help of professionals, you can boost your tax refund and make more claims than you originally thought.
Are you in need of a tax professional’s guidance? SMB Accounting is here to manage your finances, including your taxes. Work with us today!