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6 Ways to get a bigger tax refund

Posted at 14:05h in Tax by Simmons Livingstone

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6 Ways to get a bigger tax refund

With one opportunity each year to claim our tax back, it’s important to understand how to complete and lodge it properly.

Let’s take a look at some of the top tips from our experts on maximising your tax refund.

Start planning early

One of the biggest mistakes taxpayers make is not thinking about tax returns until it’s time to lodge. In doing so, the last-minute scramble can result in misinformation and missed opportunities to claim eligible expenses.

By organising all of your receipts and other essential tax items in a folder ready to go, you will streamline the process and improve your chances of achieving a greater tax return.

Know everything you’re entitled to

In many cases, taxpayers will have the opportunity to claim deductions for expenses incurred whilst earning an income.

Some of these deductions include transport between job sites or clients, tools and work equipment and even travel, accommodation and meals.

Depending on your employment and employment contract, claimable expenses could also include uniforms and subscriptions/memberships. If you have proof that you’ve spent money on expenses that directly relate to earning your income and you haven’t been reimbursed, you may be able to claim them as work-related deductions.

Get in touch with our team to learn more about eligible deductions for your tax return.

Claim work from home expenses

With COVID-19 still rearing its ugly head and causing snap lockdowns across much of the nation, you may have had to work from home for a period of time.

If you have, there are a few ways you can look at recouping the additional costs incurred during this period to ensure a bigger tax refund this year.

Learn more in our article on claiming work from home expenses.

Claim personal development courses

Personal development is a deduction many people fail to include in their tax returns. However, it can be a great way to boost your income for eligible expenses.

To claim personal development expenses, you must first satisfy these three criteria:

The course leads to a formal qualification,
The course will benefit skills or knowledge that sufficiently aligns with your current line of work, and
The course will potentially result in a pay increase in your current role.

Learn more about self-education expenses and what you can claim here.

Ask the experts about maximising your tax return

Your ability to understand your tax obligations and entitlements can seem like a lot of work. To make sure you do it right each time and maximise it to its highest potential, we always recommend speaking to a professional.

Our tax accountants will help you to understand everything you’re entitled to claim – even things you may not have known you’d be eligible for.

If you’re looking to receive a bigger tax refund this year but don’t want the stress of trying to figure it out on your own, we’d love to help. Our team are specialists in individual tax, sole traders & partnerships and companies & trusts, so we know what to look for and how to get you more cash back at tax time. Get in touch to learn more.