Glimpse on the tax deductions that you could be missing

Posted by Accounts NextGen on June 10th, 2019

Is it the time to file your tax return? If yes, then don’t forget to implement the following tips before filing an income tax return. Even a small mistake can make you pay some big price. We bring you some easy and simple tips to maximise higher tax return and techniques to minimise tax mistakes. 

Go for deduction strategy

Deductions are an ideal pick to enhance the value of tax returns. Despite of knowing and understanding the resourcefulness of deduction strategy, more than 45% of youth of  Australia lying  in the slot of age of 25-34 years have been unsuccessful in claiming beyond 0 threshold for previous year’s tax return.

To be able to save some pennies for other important things of your life, it is vital and worth to emphasize on tax deduction items that can be availed or not by the men belonging to your particular industry, and develop a tax deduction strategy.  For example, a police officer can claim gym membership and cost of travelling from work place to the place of gym as he is supposed to maintain high fitness because of the nature of his job. Likewise, flight attendants are entitled to claim for hair conditioners and rehydrating moisturizers, so as to accomplish the personality and grooming needs of their profession.

In the present scenario, individuals can claim more than 0 of their expenses by producing receipts and can claim 0 without receipt. So, why to miss opportunity to save some tax when making the blueprint of tax deduction strategy can help you gain some refund.  

Avoid simple tax mistakes

The whole concept of tax is complex and even a single mistake can make your pocket weight lighter. The negligence in estimating the interest income earned from your financial institution is the most common mistake. An individual must declare his interest income while lodging his tax.

The ATO has presently laid its emphasis on tax payers that claim depreciation on rental properties. People generally misunderstand the difference between addition and repair to rental property. Addition is a kind of capital investment; however repair is restoration of property to its original condition.  Repairs are a form of expenditure and are entitled to be claimed without making any changes into its character. However, it must be noted that not all repairs can be claimed; for instance- repairs conducted immediately after the taking the possession of the property are deemed to be costs associated with property acquired and thus is a capital expense and not a deduction.

Keep your employer informed

For the candidates having earning more than ,874 from July 01, 2017 and have HECS/HELP debt, it is obligatory to reimburse the loan even though you are studying. Your owner can hold back extra amounts from your salary to cover up the requisite repayments. Or else, you will be required to shell out money as part of your tax return.

One with investment property with mortgage can also apply to have less tax taken from your wage. One can cherish extra income all over the year by keeping your employer informed.  

Instant 20,000 dollar write-off

Liquidity or cash flow is utmost important for small businesses. During the previous year, small businesses that had made the purchase of $ 20,000 assets can claim for instant deduction of full amount than carrying it forward for the following years to write off. From July 1, 2018, the federal government extended tax deduction strategy to businesses having turnover beyond million. Go on to make a quick claim for tax evasion.

Look and hire registered tax agent or accountant

It is now quite evident that how important is to keep your taxation formalities updated.  File your individual claim with a registered tax agent or tax accountant, as they are professionals that canaid you avoid tax mistakes along with saving some money for yourself.   This will also aid in avoiding penalties during audit through expert advice of an accountant or tax agent. The unit of  professional and qualified  accountants will assist in reviewing your return and can help with tax deduction tools to procure high tax return and confirm that you are not skipping any tax deduction by formulating the right strategy.