Maximise Your Tax Refund by Claiming all Allowable Deductions With the end of the financial year approaching but not yet upon us, we have an excellent opportunity to spend some time identifying those deductions which can be legitimately claimed in terms of our personal tax. Rather than wait until later in the year, then do a half-hearted job of finding information and receipts before the deadline looms, taxpayers should be going through their records to maximise their deductions. By claiming every single cent possible, taxpayers will reduce their taxable income and they could find themselves looking forward to a hefty refund. The basic rules of identifying the types of deductions that can be claimed have not changed in recent years. They must be expenses that the taxpayer incurred as a direct result of earning their income which rules out normal household and personal expenses. The only exception is if the taxpayer is running a home-based business, and may be able to claim a percentage of some of the household expenses. To get the best advice about this situation, it would be wise to contact an accounting firm such as MSI Taylor.
Work-Related Expenses are Allowable Deductions The most common types of expenses that appear on a personal tax Brisbane return are car or travel expenses, work-related clothing and maintenance of that clothing, and any other work-related expenses. Tools and equipment including computers and software, books and magazines, phone calls made on behalf of the workplace and union fees are some of the allowable deductions. Self-education expenses are also allowable provided they have sufficient connection to the current workplace. Where the taxpayer pays a professional to prepare and lodge their tax return, this cost is also tax deductible. Where a taxpayer earns an income from dividends such as shares, or interest on bank accounts and such, any costs associated with maintaining these investments are an allowable deduction. This means that any account-keeping fees charged by the financial or investment institutions holding these investments can be claimed. Finding this type of information at the last minute can be difficult unless the taxpayer has an organised system for keeping these records. Starting to assemble this information early in the tax year makes the task much easier, and it is more likely that nothing will be missed.
Keep Receipts for Charitable Donations There are many charitable and benevolent institutions that collect donations from taxpayers that are tax deductible. Even the door-to-door collections taken from householders during certain appeals can be claimed, provided the taxpayer keeps the receipts. Over a twelve month period, a donation of $20 here and there adds up, and it
is well worth having these receipts on hand when arranging for MSI Taylor to prepare the tax return. Superannuation is another area that an accountant will examine when preparing a client's tax return, in order to check if there is an opportunity for allowable tax deductions. To make sure all deductions are maximised, it is wise to have your return prepared by a professional. More information is available at