Want to know how to maximise your 2019 tax refund? You’ll be pleased to know that identifying and claiming eligible tax deductions isn’t as hard as it might first seem. We’ve outlined some simple tips below.
Keep Good Records
Good tax records are your secret to many tax deductions. If you have an organised system it will make completing your tax return easier. You can then work with your tax agent to claim everything you’re entitled to and you have the peace-of-mind in knowing that if the ATO does come knocking you have all the evidence you need to satisfy their queries.
Modern technology makes keeping good tax records very easy these days. Explore using a suitable storage app. if you have a lot of receipts and invoices to save.
Claim Every Cent to Which You’re Entitled
When you’re sorting through your possible tax deductions, make sure you include or ask questions about everything that is related to your income-generating activities. Expenses may include use of your private motor vehicle for work purposes, purchasing and maintaining eligible uniforms or protective clothing, business use of your personal mobile phone, union fees and other business subscriptions just to name few.
For example, if you purchased a laptop that you use at home and at work you are entitled to claim a percentage of cost based on how much you use it at work. Just remember to keep receipts and keep some records of how often you’ve used it for work purposes.
Talk with your tax agent about deductions that may be specific to your industry or occupation.
A Charitable Spirit is Handy Come Tax Time
Donations over $2 that you make to a registered charity is tax deductible. The entire sum of your donations is deducted from your taxable income. So, not only can you help make a positive impact for your charity of choice, you can also minimise your tax. Again, just make sure you get a receipt form the charity after you’ve made the donation.
Get Private Health Insurance
Many higher income earners are required to pay the extra Medicare Surcharge in addition to the standard medicare because they do not have private hospital cover. Assess your situation with your tax agent to determine the possible benefits of taking out health insurance. private health insurance.
Do You Work from Home?
As employment becomes more flexible, many of us are choosing to work from home rather than schlepping into the office every day. If you work from home for even a percentage of your working week, make sure you keep a diary of the hours you spend working at home. This way, you can claim a the ATO approved $0.52 per hour which covers power, desk and chair as well as claiming other business related expenses such as printers, stationery internet and phone costs. You’ll be surprised at how much you save by including home office deductions.
Are You Studying?
If you’re undertaking study related to your current employment that is designed to improve your skills and result in an increase in income within your current employment, you can claim eligible self education expenses as a tax deduction based on the costs you incur while undertaking that study. That means you need to keep records and receipts on things like course fees, books etc.
Invest in the Services of a Good Tax Agent
Experts will always be able to find deductions that you have missed. Doing it yourself is free on the ATO site but statistics show that taxpayers who utilise the services of a tax agent tend to receive improved refunds in excess of the fee paid. In addition the fee itself is also tax deductible. With online tax services available there’s no excuse for not getting a professional on your team—they really know how to maximise your 2019 tax refund.