Tax Return Tips: What Deductions Can You Claim?
Added: (Wed Jul 06 2022)
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Income-earning entities are obligated by the law to file a tax return and pay taxes, which will then be used to fund government services. However, there's a way to lower the tax bills that you pay legally by claiming so-called tax deductions. As the name implies, these are expenses that you paid that can be reduced from your total taxable income.
What Are The Requirements
First off, you need to know if you're qualified to claim something as a tax deduction.
Primarily, the expenses should be made in the year covered by your tax return, backed by receipts or logbook, and should be related to your work. If the expense was related to both your work and personal use, you must provide proof that a certain portion was used for your employment.
Additionally, these are expenses that have not been reimbursed by your employer.
Tax Deductions To Know
Paying taxes in Australia? Below is a list of deductions you can claim.
Home office expenses. These cover the costs of occupying and running a home office, including rent or mortgage interest, house insurance, work-related internet and phone bills, computer/office equipment, heating, cooling, and lighting bills, and even certain cleaning costs. As a rule of thumb, the percentage you claim off your occupancy expenses is tantamount to the percentage of space that your home office takes up.
Vehicle and transport expenses. Travelling to meetings and conferences outside your workspace? Regularly going to and from more than one site of employment (e.g. At a headquarters and a satellite office)? Transporting company-owned equipment? If you're incurring costs from using your vehicle to do these, you're eligible to claim deductions.
Clothing, laundry, and dry-cleaning expenses. The money you shelled out to buy work-specific attire (e.g. Protective clothing) can also be deducted from your taxable income. Keep in mind that these don't cover your regular clothing purchases and non-compulsory uniforms.
Industry-related deductions. In Australia, the Australian Tax Office has a comprehensive list of tax deductions that workers may claim depending on which industry they belong in. For instance, if you're a lawyer, you're also eligible to deduct expenses you spent for renewing your annual practising certificates.
Work-related education expenses. If you've pursued studies related to your employment (even seminars and conferences), you may also be able to claim a tax deduction.
Accounting and tax planning service fees. When you hire a professional to help you manage your work/business finances and plan for your taxes, you can also claim the expenses you paid for it in your succeeding year's tax filing.
Hire Tax Idea's Chartered Accountants Today
Want to make the most of the tax deductions available to you? Tax Ideas can help. Boasting a team of experienced and knowledgeable accountants and financial experts, they will help you review your situation and identify all deductible items. To help you in the long run, they also provide guidance and assistance on how to improve your filing for the coming year.
Book your free tax return consultation at https://www.taxideas.com.au/tax-returns. You may also call them on 02 8318 1545.