INCOME TAX RETURN, EVERYTHING YOU NEED TO KNOW!

Posted by Arpit Umrewal on February 3rd, 2022

Individual tax return

When you earn money from a job, pensions, government payments, investments, or overseas income, you normally have to pay taxes on it.

The amount you pay is determined by:

?      How much money do you make, and

?      Any deductions or offsets you may be able to claim

If you work, your employer will withhold tax from your paycheck and send it to the Australian Taxation Office (ATO) on your behalf. If you work for yourself, you must set aside and pay the money yourself.

Most people are required to file a tax return with the ATO at the end of each fiscal year. You can complete it yourself using ATO online services, which you can access through your myGov account, or with the assistance of an accountant or tax agent.

How to lodge your tax return 

You can file your tax return

?     Online with myTax,

?     Through a licensed tax agent,

?     Or on paper.

Filling tax return online: My Tax the ATO\\\'s free online service, is where you may file your return. To lodge online, you must have a myGov account that is linked to the ATO. Returns filed in this manner are typically processed within two weeks. To file your tax return using myGov, you must first create a myGov account and submit all of your personal information into the government\\\'s online system. Then you link that account to \\\"ATO online\\\" and enter more information there. If your myGov account is linked then you can start your return with myTax.  Finally, you can begin filling out your tax return online.

Your tax return covers the fiscal year from July 1 to June 30. By late July, most information from employers, banks, government organizations, and health care providers will be automatically included in your tax return. You only need to double-check the information, update any missing income, add any deductions, and then submit. After that, MyTax will compute your tax for you. If you need to file a tax return, you must do so by October 31st,

Seeking help from a tax agent: When you file a tax return, you indicate how much money you earn as well as any costs you can deduct. If you want to hire someone to prepare your tax return, be sure they are a licensed tax agent. You can check the tax practitioner registration to see if the accountant or agent is registered. Most registered agents have special lodgement schedules and can file returns for their customers after the 31st of October.

Whatever method you use to file your tax return, keep in mind that you are accountable for the claims you make. So, before you or your agent files your return, double-check that your deductions are valid and that you have included all of your income.

Important documents for filing taxes

The ATO will pre-fill the majority of your income information based on information provided by your employer and banking institutions. You may need to supplement your income in other ways and need to provide all necessary details. As it is crucial to be prepared with certain facts to achieve your greatest returns.

The following are examples of common types of information that must be declared:

In the case of Income / Revenue

• Certificates for a group (given by your employer, but not needed in most cases)
• Information on lump sum payments and termination benefits received
• Information on interest received from banks and other entities
• Information on dividends obtained from investments.
• Rental revenue from investment properties
• Gains from the sale of investment properties and capital gains from the selling of stocks
• Earned income on your personal ABN
• Other sources of income like foreign income, business, etc.

In the case of Expenses / Allowable deductions

• Automobile expenditures
• Uniforms and other work-related apparel costs
• Business travel costs
• Income protection and health insurance
• Donations to an authorised charity
• Expenses for working from home
• Any additional work-related expenses

Some other details

• ABN and TFN (if available)
• Residential address, phone number, email address, and so on.
• ATO\\\'s final assessment notice (if available)
• Copy of the most recent tax return
• Job or professional description
• Details about spouse\\\'s income, including TFN
• Bank account information (BSB and account number – for your refund!)

The list looks long, but it is crucial to capture all of the above details to avoid redoing your tax return or losing out on a larger tax refund.

Conclusion

Filling a tax return is a daunting job. However, it is a vital task to get done on time. We recommend you use this checklist and make sure you aren\\\'t forgetting anything that could cost your money or land in any trouble with the Australian Tax Office (ATO). If you fail to submit receipts or claims in your tax return, you may miss out on important tax deductions, using this checklist will assist you in getting everything correct. Note all the important details as mentioned above in this article and easily file an Individual tax return Victoria. Do keep in mind that the Australian Taxation Office closely examines specific transactions that taxpayers frequently get incorrect. We advise you to be cautious of minute details and work honestly, that is what is going to help you work without any legislative barriers and file your tax return smoothly.