Do you want tips to maximise your 2020 tax refund?
With these simple tips, you can minimise the stress associated with doing your taxes while maximising the amount that you receive back.
Keep Accurate Records
One of the biggest mistakes people make when it comes to their taxes is not keeping detailed and accurate tax records. Eg copies of expense receipts.
Having an organised record system can help to make completing your taxes a much easier process. You can then work with a registered tax agent, such as the agents at Online Tax Australia, who will help to ensure that you claim everything that you’re entitled to.
Nowadays, technology makes keeping records easier than ever. Simply use a storage app to help keep track of relevant receipts and invoices.
Claim Everything That You’re Entitled To
There are a lot of tax deductions that people often forget to claim due to their not knowing that they’re eligible or not knowing about their existence in the first place. That’s why it’s important to do your research or ask your tax agent about the expenses you’re entitled to claim on. The use of your private vehicle for work purposes, the purchase and maintenance of protective work clothing, the use of your mobile phone for business, and union fees are just a few examples of the expenses you may be entitled to claim.
If, for example, you use a personally purchased laptop for work, you can claim a percentage of the cost. However, this is based on how much you use it, so it’s important that you keep a log of how often you use it for work.
Have You Been Charitable?
Donations of more than $2 to registered charities are tax deductible, which is why it pays at tax time to be charitable. When donating to a charity, just make sure you get a receipt and file it away with the rest of your receipts and invoices. So, when you make a donation to charity, not only are you helping to make a positive difference in the world, you’re also maximising your tax refund.
Take into Account Home Office Deductions
If you work from home, you are likely eligible for a wide range of deductions relating to the costs associated with having a home office. You will likely be eligible for working at home deductions even if you only work at home for a percentage of your working week. Working at home deductions can help offset the cost of power bills, your desk and chair, internet and phone bills, and anything else that relates to your work including printers and stationery.
However, it’s important that you keep a log of the hours you work from home as this will be necessary to calculate the percentages of the deductions you’re entitled to. For example, if you have bought a computer that you use for both work and personal use, you will need to be able to validate the business use percentage. Eg log the hours that you use it for work
Private Health Insurance
If you’re a high-income earner, you may have to pay the additional Medicare Surcharge if you do not have private health insurance. If you fall into this bracket, it’s definitely worth talking to your tax agent about the benefits of taking out private health insurance and how it can help to decrease the amount of tax you’re required to pay.
Invest in Self-Education
Self-education that relates to your current field of employment and is designed to improve your skills and increase your income in your current role is tax deductible. Costs associated with undertaking these kinds of studies are all eligible to be claimed on, so make sure that you keep all the relevant records and receipts, including course fees and book costs.
Employ the Services of a Good Tax Agent
The benefits of employing a good tax agent are myriad: they can help you ensure that you don’t miss out on any of the deductions you’re eligible to claim, they give you peace of mind to know that your taxes are legally compliant and their fee is even tax deductible. So, while you may think that doing your taxes yourself for free saves money, you will often get more than your money’s worth by hiring the help of a good tax agent.
Online Tax Australia’s online services make it easier than ever to get professional help and can ensure that you get the most out of your 2020 tax refund.