Tax Tips to Help you Save Time and Money this EOFY
Whatever your feelings when tax time rolls around, here are a few tips to make life easier.
Your accountant is your new best friend
Tax time is tricky, so don’t feel stressed if you’re finding your tax too complex to manage on your own. By investing in a trusted accountant you’ll be relieved of not only the time and effort that goes into lodging your own return, but the inevitable stress that accompanies it. In saying this, you should be asking your accountant questions like “what can I claim on?” to make sure you’re really getting bang for buck.
What can you claim on?
There’s a long list of unusual and exciting things that many Aussies don’t know they can claim deductions on. Whether it’s your household bills if you work from home, or a magazine subscription, there are a number of items you could be getting some money back for. For example, did you know that if you purchase a handbag purely for work purposes (to carry a laptop, iPad, diary, pens etc.) you can claim part of it back on tax?
Keep an eye out for scams
The confusion that tax time brings means that many Aussies are open to being conned out of their hard earned money. Scams are plentiful during this time of year so make sure you stay cautious when handing over your financial information or managing your accounts online. If you find yourself receiving emails or phone calls from companies claiming to offer free tax advice, remain vigilant and if it seems a bit dodgy steer clear because it might be a fraud.
Get started early
Once you find out what you can claim on you’ll need to make sure you have the right paperwork on hand. There’s nothing worse than getting to the end of the month to realise you’re missing half the year's invoices and receipts. Make sure you get started early so you know whether you need to go digging through five years worth of files to find those last few bank statements. This will be ten times easier if you follow the number one rule and keep your records easily accessible. The two things you want to try and keep a record of are any payments you receive, including wages, interest, dividends or income from a rental property, or any out of pocket expenses you’ve made.
Embrace your charitable side
Did you know that donations to charity are tax-deductible? You just need to make sure that your donation is to an organisation that has a status of deductible gift recipient. Not only are you helping those in need but you also might be able to reduce your tax bill as well.
Tax time doesn’t always need to be so stressful. If you get in early, make a checklist and follow a few simple steps you’ll breeze through EOFY in no time, perhaps with enough cash to splurge on something nice for yourself.
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