As long as you don’t break the law, now is the time to get serious when filing for your tax returns. If you want a bigger tax refund you will need to think outside of the box. The ATO is exceptionally good at detecting when you haven’t declared bank interest, declared wages,have income tax and share dividends. However, it will not tell you when you have omitted a deduction for investment costs, work related expenses and other items. The following article will provide you with some hints and tips on how to get a bigger tax refund.
Claim all of your deductions:
One of the easiest ways to increase the amount of your tax refund is to claim a deduction on all of the expenses you are legally entitled to. If you ever pay for anything that is work related make a document of all purchases and keep your receipts. Even if you are unsure as to whether or not you can claim on an expense, keep the receipt anyway. Your tax accountant will let you know whether you are entitled to make a claim.
Keep records of everything:
Keep a record of every single last one of your expenses. Create an excel spreadsheet and keep hardcopies of all of your receipts. The last thing you want to do is spend time trying to gather information together just before you are due to file. Rushing around at the last minute is a sure way not to include everything, which can lead to you missing out on hundreds, or perhaps thousands of dollars out of your tax refund simply because you couldn’t locate your receipts.
Pay attention to the small things:
A $5 textbook or a $10 charity donation may not seem like much at the time, but if you add up these small purchases over a 12 month period it can run into the hundreds.
Log your taxes with a tax agent:
A tax agent wants to ensure that you maximise your tax refund and avoid getting into trouble with the ATO. They are trained in all aspects of tax refunds and will ensure that you claim every cent.
If you have used your car to travel between different work locations you can claim some of your expenses back. There are a number of different ways to claim expenses for motor vehicles and the easiest way to do so is to claim on cents per kilometre on all travel related to work. This works out to approximately 65c per kilometre. You are not entitled to claim on private travel or your regular journey to and from work.