24 Jun How to get a bigger tax refund this year
How to get a bigger tax refund this year
After such a challenging 6 months, everyone will be looking to receive a bigger tax refund this year. But what can we do to actually make it happen?
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. Ensure your ducks are all in a row well prior to June 30 by having a dedicated tax folder where you can store all your receipts and any other essential tax items.
Due to COVID-19, the ATO is urging Australian taxpayers to hold off lodging their returns until the end of July to ensure all income details have been finalised. Those who lodge too early risk facing delays and may even be required to pay money back where inaccurate information has been supplied.
If you’re unsure of the right time to lodge your return, we always recommend seeking professional advice.
Don’t trust pre-filled data when lodging
While many people assume that pre-filled data from the ATO is accurate, this often isn’t the case. Some institutions have until August to submit updated data, meaning pre-filled information submitted prior to this date will be inaccurate.
In these instances, the ATO will not absorb responsibility and could lead to bigger tax issues down the line.
As a rule of thumb, always rely on the information provided by your employer or payer. You can also run it by your tax accountant who will have a better understanding of how to ensure your details are accurate.
Claiming deductions related to earning your income
In many cases, taxpayers will have the opportunity to claim deductions for expenses incurred while earning an income. Some of these deductions include transport between job sites or clients, tools and work equipment and even travel, accommodation and meals.
It’s important to note, however, that claimable expenses are generally required to be used for work only, otherwise only a portion of the expense can be claimed.
Get in touch with our team to learn more about eligible deductions for your tax return.
Claiming work from home expenses
With COVID-19 forcing many businesses to change the way they operate, countless Australian taxpayers spent time working from home.
If this includes you, 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.
Personal development is a deduction many people fail to include in their tax returns, however, can be a great way to boost your income for eligible expenses.
Self-education expenses are only deductible when the course leads to a formal qualification. It also must maintain or improve knowledge or skills required in your current position, as well as have the potential to result in a pay increase in your current role.
Learn more about self-education expenses and what you can claim here.
Don’t claim more than you’re entitled to
It can be tempting to inflate your deductions here and there in order to boost your tax refund. While it might seem insignificant at the time, exaggerating your claims can lead to trouble later on with the ATO.
In general, if you can’t prove it, don’t claim it.
Ask the experts about getting a bigger tax refund
Tax obligations and entitlements can be confusing. With so much riding on your ability to get it right, we always recommend speaking to a professional; one who will understand everything you’re entitled to claim – even things you never thought 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. With complete confidence in our tax services, we even offer a maximum refund guarantee to all our clients. Get in touch to learn more.