How to Maximise Deductions for Tax Returns
Come July 1, most Australians expect a tax refund. But how do you know what kind of return to expect? And what can you do to maximise your return each year? The short answer is knowledge and organisation. The long answer is… keep on scrolling.
Know your industry and what is claimable
Understanding what is legally claimable and what is not is key to maximising your tax return. Taking coffee breaks each day and expecting to claim the cost of your latte may not be one of them, so it’s better to learn before spending! Things like travel expenses, home and car expenses, and more can be claimed as a taxable expense. As an additional thought, many Australians have shifted to a work from home environment in the last financial year. Therefore, you may be able to claim a portion of your utilities, internet and rent as a taxable expense. Not sure what you can claim? Click here to get the conversation started and we’ll point you in the right direction.
Be organised and keep receipts
You may have found yourself saying “no thanks” to the many times you were asked “would you like a receipt?” and then regretted the decision later, so make sure you grab a receipt for any taxable purchases. Now you must keep physical copies of your receipts in a safe place (*cough cough* hopefully that place is organised!) but a handy way you can organise your life come tax time is to email copies of your receipts to yourself and file them in a folder called FY20/21. Then in the week leading to your tax appointment, you can sit down, scroll through, and create an accurate summary of all expenses for your accountant. It’s the equivalent of bringing your school teacher an apple – trust us, we’ll love you for it.
Honesty and accuracy are key
You may think to yourself, $4.80 is pretty much $5, but when it comes to tax time, accuracy is key. Calculate all figures to the exact value and don’t over or underestimate. Your tax return is a legal process and you will be held accountable for any discrepancies if the ATO look deeper into your return. The most important thing to remember is, to be honest. A reputable and trustworthy tax accountant will guide the way when it comes to submitting your tax return at the end of the financial year.
Seek expert help
There is an abundance of DIY tax return software available to you now. However, what these portals do not do is; answer your questions, give feedback, guide you in the right direction, double check your calculations and ensure you’re maximising deductions within your return. Employing a knowledgeable accountant to lead the way and facilitate your tax return will not only maximise your return but will also alleviate any concerns or anxiety related to handling the process all by yourself.
Looking for an accountant that goes the extra mile? Contact us today and let’s book you an appointment. If anyone knows how to maximise deductions for tax returns, it’s LXD Business Solutions. With over 25 years in the industry, we know our way around tax and we’re here to help.