When you do your income tax return each year, do you get the full tax refund that you’re entitled to? Or are you looking for a bigger refund but don’t have a clue where to begin?
In Australia, countless individuals miss out on legitimate tax deductions due to the complex taxation system and its rules about what you can and can’t claim on your tax return.
Here are some simple tips on how you can get more of your hard earned money in your pocket come tax time.
Have tax return questions? Ask your tax agent.
Do you understand every deduction and work-related expense that you’re lawfully entitled to declare on your tax return?
For most of us, the response would be “no”. That’s why most Aussies use a tax agent. According to the Australian Taxation Office (ATO), more than 74% use a representative like Sphere Accountants & Advisors to do their tax returns.
Simply ask your tax agent about tax-deductible expenses and what you can claim. It’s highly probable that they would also be able to recommend additional tax deductions that you didn’t know you were entitled to.
For example, your tax agent might recommend, unless they’re paid through your superannuation, that you can claim your income protection insurance premiums.
You might likewise be able to claim work-related office expenses, smartphone expenses, vehicle expenses, union fees, and so on.
Just one extra deduction could mean a whole lot more dollars into your pocket come tax time. If you want a bigger tax refund, be sure to ask your tax agent.
Save your receipts and invoices with an online app
For any purchases that you make for work purposes, it is essential to save your receipts and invoices so you can claim those expenses on your income tax return. In reality, not only is it essential, it’s the law!
Saving your receipts and invoices helps you to claim more expenses, which is why it’s an excellent way to get a higher tax refund. There are quite a few reliable online apps to help you do this such as the ATO’s myDeductions app and Xero.
Claim work-related phone expenses
If you use your phone for work-related calls, then you can likewise claim a part of your annual phone bill on your tax return.
To work out the percentage that you can claim, you will need a monthly account statement from a typical month. Calculate the percentage of work-related calls you made, and then declare that part of your annual bill.
This is a great way to get a tax return boost. As an example, if 40% of your calls are job-related, and you spend $660 a year on your phone bill, you can declare $264 of work-related phone expenses on your tax return. For an individual making $60,000 a year, that might imply more than $70 more in your tax refund!
Hope these tips help!
Need assistance with your tax returns? Let us help you claim the full tax refund that you’re entitled to. Click here to contact a Sphere Accountant today.