Tax time doesn’t have to be a bore nor does it have to be a dreaded time of the year. What if you could make tax time fun and rewarding by getting a nice healthy cheque in the mail?
Great news you can, but you do need to follow a few steps. Firstly get organised by keeping a tax folder or file that is easily accessible, this is an easy way to keep your financial paperwork in check. Use dividers to separate general tax information, bank statements, investment accounts, declarable income, shares, superannuation, claimable receipts and government payments. Note that once you have lodged your tax your Tax paperwork needs to be safely stored for around five years after it is lodged. If you lose a tax deductible receipt, you may lose the ability to claim it.
Always ask for a tax receipt if you pay for something that may be claimable and be sure to keep receipts in good condition, so stow them safely away or scan them and keep on file. Excel spreadsheets are useful for recording your income and expenses during the year so you’re not bombarded come tax time.
What to claim as a tax deduction, well each industry has its own work related expenses that can be claimed. A good site to visit is https://www.ato.gov.au/ to help you determine what you can and cannot claim. Don’t forget that most donations to charities will be tax deductible, so keep receipts and include them in your tax summary.
Hate filling in your tax summary or don’t have time, then be wise, engage the services of a certified tax consultant who specialise in tax claims and let them manage your tax return for you. Remember that you will still need to have collected and provide them with the needed documentation that you have kept through the year.