Just like a visiting your nan when you’re on a diet, there are a number of easy traps you can fall into when filing your tax return. Avoid these common mistakes and get the most out of your individual tax return this year.
Avoid these common mistakes and make sure you are getting a tax refund that keeps you out of the ATO’s sights.
1. Forgetting to declare all your income
It’s not just the obvious income from your current job the Tax Office needs – everything from the interest earned on bank account to the dividends from the shares you may own all need to be declared. Did you have more than one job in the financial year? You’ll need to track down a group certificate from that job and declare that too, along with any investments in your name.
2. Deductions that relate to motor vehicles, or rental property expenses
We get plenty of questions around claiming costs for your car or motor vehicles as well as rental property expenses. And rightly so – there are some fairly complex rules around them, including what records you need to keep. If you get it wrong and the ATO finds out, you could be facing an audit and a hit to the hip pocket. We can help explain the rules and make sure you’ve got the right documents.
3. Wrongly claiming work-related expenses
Professional ballerinas can claim stage make-up but everyday lippie is off-limits. Office workers can claim travel costs to meetings, but not to their main office. Point is, the Tax Office is very specific about what can be claimed and what can’t. Your accountant can explain these, and find some deductions you might not even know you are eligible for.