We know tax time can seem like such a pain in the a*s but the fact is, everyone has to do it. And if you’re prepared, you’ll breeze through your tax return and might even get some extra cash back at the end of it!
Below are our top tips on how to get the most out of your tax return.
Keep all records and receipts.
Keeping records and receipts throughout the year is the easiest way to ensure you don’t forget or miss any relevant expenses. You can scan receipts and store them electronically or even open a separate bank account to keep track of expenses that can be claimed at the end of the financial year. If that all sounds too fancy, then grab a shoe box and put your receipts in as you go along. This might take longer to go through at tax time, but at least you know that everything is in the one place.
Know what you’re entitled to.
If you have to spend money in relation to your work, then keep the receipt and make sure you claim it as part of your tax return. If you use the item for part work and part personal, in most cases you can still claim a portion of the expense. If you are unsure whether you can claim a particular item speak to your accountant for more information.
Consider your tax bracket.
If your income moves you into a higher tax bracket you may want to consider making larger tax deductable purchases in that financial year. This will lower your taxable income and may even move you down into a lower tax bracket.
Did you know that you can claim back on donations made over the amount of $2? This applies to donations given to organisations entitled to receive tax deductible gifts. The donation must be a voluntary transfer of money or property where you receive no benefit or advantage. And you must be able to provide a tax receipt for the donation to claim anything back.
Being charitable doesn’t necessarily mean you’ll get more back at tax time, but if you break even then why wouldn’t you want to help an organisation or individual who needs it?
So that’s it, a few simple steps to keep in mind throughout the year to make your life easier at tax time.