Year 2017 is here and seems to hold a lot of expectations for so many people. You can actually start now to prepare for your tax process. Because still the beginning, you may find it easy navigating through the year if you find a way to get a hold on your finances and expenditures. One of the things you may want to prepare for is how to file your tax return. This may assist you avoid the common practice that is made by so many tax payers, which is the negligence of certain tax claims that can be added to the refund they got. Apart from the reason, getting less than what you are entitled to from your tax refund is not a happy thing for you. As a matter of fact, you want to ensure that you claim everything that you are entitled to while completing your tax return. Remember, it’s your money that is involved.
It often happens that the things most people miss while preparing their tax returns are things that are very common but due to ignorance or misinformation, they usually do not include it in their tax deductions. You can lose money by missing out on certain tax deductions, which is why it is often a common practice to seek assistance from tax agents when you are filing a tax return. They can assist you resolve some confusion you might have about making some particular claims based on your expenses during the year. If you live in Parramatta, you can search for Tax Accountant Parramatta on Google as an example.
Based on a recent survey, it has been confirmed that there are five common tax deductions that are often forgotten by most tax payers in Australia; we are briefly looking at every one of them.
Cost of managing tax affairs
This sounds rather strange but it is true. You are allowed to claim the amount of money you spent on any tax service you used to lodge your tax return. But note that this may be done at the end of every fiscal year. Thus you can only claim the cost of last year’s expenses when filing your tax return this year. Tax deduction with regards to this amount is usually designated by the ATO as the cost of managing tax affairs. So you may want to look out for it when working on your next tax return online process.
Membership fees are also tax deductible when related to your profession. If you belong to any membership or union body where you pay fees, you can claim the amount spent on these fees. It may also happen that you are under compulsion to belong to a union because of the category of your work; any fees paid to such union are also tax deductible.
Work related Car Expenses
If the car you are using for work belongs to you, then you can claim every kilometer traveled with the car for work. On the other hand, the distance you cover between home and work is not included; only those travels that relates to running errands are claimable. It is a professional approach to keep a car logbook for this purpose so that you can easily record the odometer readings every time you use the car for work. Such travels include but not limited to travelling between two companies if you keep two jobs, driving a client of the company and making short business trips. Although you are not allowed to claim the distance traveled between home and work when using your personal car, you can still make such claims when you transport some work related heavy machinery.
Home office expenses
Any work related activities performed at home is tax deductible. Thus if you work from home at any time, then you can claim home office expenses. Such expenses include but not limited to a percentage of your internet cost, telephone bills, in addition to part of the depreciation cost of your PC and any other device that you use in the home for work.
You can also claim a percentage of your personal mobile phone expenses when you use your phone to make work related calls.
Finally, you can keep an up to date record of all your bills, receipts or any other document that might be required by the ATO for validation.