As tax return time is fast approaching, sorting out your finances during this can be complicated. Let us help you minimise the risk of making common mistakes with your return.
1. Estimating your income and tax paid
It is always best to have accurate figures when you enter your income and the amount of tax you’ve paid. All your entries must be correct, inconsistency may attract ATO’s attention. Make sure that you have everything recorded especially when you have multiple revenue streams.
2. Inflating your deductions
Make sure that you only claim costs for things that you have proof of and back up by a receipt or bank statement. You can only claim what you have spent. If your deduction claims are found to be incorrect, you will be required to pay the tax voided. There could also be a penalty given by the ATO.
3. Claiming what you're entitled
As much you’re careful to only claim your deductions, make sure that you claim all that you are entitled to. Don’t hesitate to claim it as long as you have full proof and documentation. Read more about it here: https://www.thetaxaccountant.com.au/post/what-deductions-can-you-claim
4. Forgetting the basics
As easy as it is, the ATO noted that forgetting the basics can cost you. Either name or address change. Make sure to update it before lodging your return. Bank details should also be updated. No bank details, no refund.
5. Not using a tax agent
To avoid all these mistakes, it is best to always consult a registered tax agent. 74% of Australians use a tax agent to prepare their taxes because the tax is complicated. It is easy and less stressful to pass on all your information to a tax agent and leave it to process. Tax agents like us will be able to boost your refund and make sure to submit accurate information to the ATO. The best part is that the tax agent’s fee is also tax-deductible.
Disclaimer: This information is not to be relied upon without speaking to your accountant, tax agent or financial adviser depending on the advice