Filing taxes is never fun. Finding ways to boost your tax refund and maximize your savings, however, can feel highly satisfying. Here are five last-minute tips for doing so.
Get Aware of What You’re Entitled To
The most straightforward way of boosting your tax refund is to be aware of every deduction you are entitled to. There are two steps to this process. Firstly, access your government taxation office website and search for the information they provide on deductions. Pay attention to their guides on deductions for specific industries, and make a list of all those deductions which are relevant to your profession or personal circumstances. Secondly, hunt down all written evidence (receipts, invoices, bank statements, contracts, payment summaries, etc) of expenses you’ve incurred over the past year. Match this up to the list of deductions you made and you’re good to go.
Claim What You’re Entitled To
This may sound simple, but it’s surprisingly often overlooked. It’s understandable; getting one’s taxes in order can be a tedious process, and many may feel the urge to just get it over with as soon as possible. However, rushing through the process can result in a significant number of taxpayers losing out on a lot of potential savings. For example, one tax deduction which many fail to claim is home office tax deduction. Home office tax deduction is not solely for the self-employed. If you telecommute to work and/or regularly perform work-related activities when you are away from your work-place, you may be entitled to a deduction for various home office equipment (computers, telephones, printers), work-related phone calls, running costs (heating, cooling, lighting, cleaning), home office furniture (lamps, chairs, desks), furniture repair, etc. To claim this deduction, you’ll need to get written evidence in the form of receipts, itemised phone accounts, diary entries, etc. Other deductions which are often overlooked are out-of-pocket expenses and auto expenses; do keep accurate records of your mileage and miscellaneous travel costs. Systematic record-keeping is key here. Find out more tips here.
Being Charitable Benefits You Too
Another potential tax deduction is through donating to charity. However, do be aware that this works only if the organisation you are donating to is on the list of approved ‘deductible gift recipients’.
Timing is Key
Plan your financial transactions strategically. Prepay your expenses, delay your income, and submit your tax return within deadline. Common expenses to prepay are rental property expenses, income protection insurance, work-related subscriptions and membership fees, interest on margin or investment loans, etc. Don’t procrastinate on getting your taxes in order, as that will just bring on added stress, a heightened risk of mistakes, and possible late penalties.
Consult the Experts
Ultimately, this is all really general advice. For a tax refund-boosting strategy tailored to your situation, it’s best to consult a qualified tax agent or accountant from a company like Tax Return 24/7 (www.taxreturn247.com.au). With their help and support, you can save time and energy and minimize the potential for errors. And as the cherry on top, the accounting fees charged can be claimed as a tax deduction when the next financial year rolls around the corner.…Read More