Taming the terrors of taxation

Taming the terrors of taxation

JULY 2015 | Sam Horsman, Business Principal PJS Financial

AT THIS time of year many people’s thoughts turn to organising their finances to get their income tax return prepared.

This tax time, whether you are preparing your own income tax return or having it prepared by a registered tax agent there are a few easy things that can be done to make the job pain free and ensure you receive the maximum refund you’re entitled to.

Plan Ahead:

Organise an appointment well in advance and at a time that you know you can make it. If you are getting your tax done some where for the first time, provide them with your full name, address, contact phone number, tax file number and date of birth when you make the appointment. This will enable the accountant to set you up in their computer system and obtain any information from the Australian Taxation Office that they may require.

Be Organised:

Taking a few minutes organising your information will simplify the whole process.

Some area’s of deductions you may be entitled to are:

Motor vehicle – if you use your personal vehicle for work purposes (travel to and from work is not claimable).

Travel expenses – if you travel for work and pay for some of the costs yourself, whether or not you receive an allowance, you may be able to claim the costs.

Self education – costs associated with training and study that is directly related to your income earned can be claimed.

Donations – to be able to claim donations as a tax deduction they need to be made to organisations who are registered as deductible gift recipients.

Other – items that you may also be able to claim a deduction for are: union fees, professional memberships, stationery and supplies, work use of personal mobile and internet.

It’s important that you retain all the receipts associated with your deductions.

Ask Questions:

If you are unsure or not certain whether something should be included take the receipt or information along to your appointment with your tax agent and ask them.

It is far better to ask than to miss out on the deduction altogether. Also, don’t be afraid to ask them questions about how you can save tax in the next financial year.

By having your income tax return prepared by an accountant not only can you be confident that it has been done correctly and you haven’t paid any more tax than you should have, but also the cost of the accountant is tax deductible in the next financial year. What other professional’s costs are tax deductible in your personal income tax return?

Disclaimer: The above information is general in nature and should not be consider tax advice.