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Tax return tips


Despite the current COVID-19 world in which we live, the procedures for completing and lodging tax returns remains pretty much the same.

Before we talk with you to go over your tax return, certain information will be needed. Of course these days pre-filling takes care of a lot of the “paperwork”, and if you wait until late-July or mid-August the ATO’s systems will most likely be able to provide most of the information from employers, banks, government agencies and other third parties. We will then be able to double-check the information is correct and enter any deductions you want to claim. However to be thorough, before contacting this office to go over your tax return, here are the sorts of information needed to enable lodgement of your return.

POINTS TO REMEMBER

The taxability of some forms of income may seem obvious, but in keeping with our objective of being thorough, here is a list of common types of income that must be declared on your tax return. (This remains the case even if the amount of income has been affected by the COVID-19 crisis.)

Check with us if you are unsure about any of these payments.

DEDUCTIONS

When completing your tax return, you’re entitled to claim deductions for some expenses, most of which should be directly related to earning your income (called “workrelated expenses”). Naturally, a deduction reduces your taxable income, and means you pay less tax.

To claim a deduction for work-related expenses:

When your expenses meet these criteria, here’s a list of the things you may be able to claim.

Of course, check with this office for more ideas. Sometimes one’s circumstances will define what can and generally cannot be claimed as a deduction, so even if some of the above seem to fit your situation, it may pay to check with us first.

OFF THE DEDUCTION MENU

The ATO is focused on helping taxpayers get their deductions right, but it’s also on the lookout for red flags that identify people who are doing the wrong thing. Here’s a list of deductions you usually can’t claim on your tax return.