Filing tax returns can be a challenging and overwhelming process, especially if you aren’t a tax professional. However, assessing all the relevant financial data can help you make the most of your tax returns. Looking for ways to boost your tax refund is an excellent way to save money. Here are a few tips for maximizing your tax return in Australia.
1. Work with tax professionals
Tax is a complicated process, mainly if you aren’t familiar with it, because you may not know all the deductions you qualify to claim. When filing a tax return yourself, you’re responsible for even the smallest mistakes, which may result in an ATO audit, penalties, interest, or fines to pay. Lodging your returns with an expert is the best option because they have the skills and knowledge to spot opportunities for maximizing your tax return while ensuring accuracy.
Hiring a tax agent gives you peace of mind as they ensure you comply with tax regulations and accurately prepare your return. They can also offer tax rebate services for refunds on excess tax payments. If you’re in a complex financial situation, a tax agent or accountant can give you the right advice, saving time and preventing unnecessary fees to the Australian Tax Office (ATO). You can visit pherrus.com.au or other relevant sites to learn more.
2. Keep a record of your receipts
When tax time comes, you must have all the receipts for the expenses and purchases you made over the past financial year. If some of your receipts are lost, you risk losing money in a tax refund. If you wish to maintain physical records, buy folders and label them correctly, then save all the relevant receipts. If you make work-related expenses, keep the receipts in the tax folder.
Once you invest in property, keep the payment receipt. When you give to a registered charity, get a receipt because that donation is tax deductible. If you don’t know whether some expenses are deductibles, save them and talk to a tax consultant for advice.
3. Maintain a record of working-from-home expenses
If you work from home, you’re eligible to make work-related claims. However, you should understand the deductions you’re entitled to. When working from home, you can claim various deductions related to a home office. Nonetheless, you can only claim these deductions if your employer didn’t reimburse you an amount you spent, your expenses are directly related to earning an income, and you have a record to prove it.
4. Invest in self-education
Enhancing your knowledge and skills is an excellent way to succeed career-wise while helping you maximize your tax return. For your self-education expenses to be considered tax-deductible, the course you take must improve the knowledge and skills needed for your current job and should result in a rise in your income. You can’t claim self-education costs whose connection to your current employment is insignificant.
5. Prepay your bills
Paying your bills monthly or weekly might be convenient. However, it would be better if you could handle some expenses, including professional subscriptions and union fees, in a lump sum. If you claim a tax refund now for costs partly or wholly relating to the following year, it will enable you to get a higher refund this year.
Endnote
Maximizing your tax refund is an excellent way to save money. Use these tips to maximize your tax return in Australia.
