Tax Tips for this Tax Season

Are you prepared for the season of filing taxes? Now is the time of year when we all have to dig out our tax documents and struggle through the laborious process of submitting our returns for the previous year. The good news is that there are several hints and suggestions that can make things simpler. Continue reading if you want some useful suggestions on how to maximise the amount of money you get back from your taxes this year.

Are you seeking for some helpful hints to make the upcoming tax season a little less stressful? This guide will provide you with all of the information you need to ensure that you are declaring everything correctly and getting the most out of your return, regardless of whether you are a resident of Australia or just visiting the country. Read on for some helpful advice, whether you're interested in learning about deductions or just want to know what documentation you should bring in.

When completing their tax returns, Australian taxpayers are required to adhere to a number of rules and regulations, just as taxpayers in any other country across the world are required to do. Nevertheless, during this year's tax season, taxpayers in Australia need to keep in mind a few specific points that are relevant to their situation.

This article offers a summary of the most important tax advice that Australian taxpayers should keep in mind for the current tax year. It doesn't matter if this is your first time filing taxes or if you've been doing them for years; if you follow these guidelines, you'll be able to file your return accurately and get the most of your refund (if applicable).

Tax Season Advice for this Year

The end of current tax season is drawing closer and closer, which means that you have most likely already completed all of the work that was required of you. However, if you haven't done it yet, don't freak out and obtain professional financial aid instead. Call one of the best offices based in Melbourne, and make sure that the most experienced accountant is handling your work.

Do you have opportunities to increase the money you've worked so hard to earn? When trying to get the most out of their tax return, a lot of people make the unfortunate mistake of not taking advantage of potential deductions because they either do not know about them or simply are not organised enough to keep track of them.

Learning how to raise the amount of money that you keep is an excellent method to make the most of your tax return, especially considering that the typical tax return in Australia is approximately $2,574.

How do you get started, particularly if you are not an experienced tax preparer? The process of getting ready for tax season is a lot simpler these days than it was in the past. You'll be able to dramatically reduce the amount of stress (and time) associated with getting your financial life in order if you use a few straightforward programmes and become familiar with the fundamental laws governing deductions.

As a result, in order to assist you in getting ready for this year's tax season and making the most of the opportunities it presents, here is the most helpful advice.

Get the Latest Tax Breaks Here!

There are a lot of benefits available now as a result of the recently passed federal budget. To be more explicit, it was announced in the Budget that exceptional tax cuts for low and middle-income workers would be implemented. These tax cuts may save individuals up to $1080 per year and households with two incomes up to $2160 per year.

If you wish to take advantage of this new tax savings, which is offered as a tax offset, then you should claim it in this tax return. Therefore, if you want to obtain it, you need to get moving as soon as possible because there isn't much time left.

Use Your Tax Money Wisely

Getting a few dollars less in tax taken out of each pay period is one of the best tax reduction benefits you can get when there is a reduction in the tax rate. This is the reality, and it is one of the best tax reduction benefits you can obtain. In addition, on a weekly basis, you won't really notice this reduction; but, the tax savings will make a difference.

Actually, the tax cut is treated like an offset, which means that you will receive the total value all at once. This is because an offset is treated like a refund. Consider what a positive impact it would have on your current financial situation if you were to get $1080. Doesn't that just sound incredible? But you should make sure to put the money you save on taxes to good use; for instance, you may use it to pay off some of your debts.

Use the Instant Asset Write-off for Small Businesses

Additionally, the government made an astounding announcement regarding the extending of the deduction for the immediate write-off of assets. This new extension pertains to small enterprises and the acquisition of capital assets. Now, it also applies to the purchase of any individual fixed assets with a price tag of up to thirty thousand dollars. In addition, the revenue requirement to qualify has been raised to a minimum of $50,000.

In other words, you are given the option to immediately deduct the cost of everything that your company requires, such as information technology (IT) equipment, a car, or other tools, against the profits of this current fiscal year. Get in contact with us and we'll explain how you may maximise the financial impact of this immediate asset write-off for you and your business. Your small business could benefit greatly from the assistance of an accountant.

Submit a Claim for Your Work-Related and Travel Expenses

You have the legal right to seek reimbursement for a number of different costs that are directly tied to your place of employment. Therefore, there is no reason not to seize the opportunity! Simply consult the knowledgeable accountants for their expert advice and discover out which work-related costs you are eligible to claim and which you are not.

Calculate Your Tax Bracket

The first thing you need to do to get the most out of your tax return is to double check that the tax bracket you put yourself in is correct. You won't have a complete understanding of the scope of your tax responsibilities until you determine which tax bracket you fall into.

From one year to the next, the tax brackets do not always remain the same. To gain a better idea of where you stand, you should consult the individual and married income tax rates provided by the Australian Taxation Office. This should only take a few minutes of your time. Once you have determined which tax bracket you fall into, you will be in a better position to examine the deductions you are eligible for.

Make a System for Receipts

You are not the only one who shoves their receipts into a secret drawer or a large envelope in order to stay organised. Having said that, there is a more effective approach. Because receipts are something that are very simple to lose, you will need to put a system into place to help you keep track of them. In addition to this, the ink on the paper may become less visible with time, leaving you with a sheet of blank paper.

During tax season, one of the best methods to save money is to carefully keep track of and save all of your receipts. You might be astonished to learn exactly how many things you are eligible to claim, some of which you might not have even been aware of.

Going forwards, you should make it a priority to organise and store all of the receipts that are applicable to your situation, and you should consult with an accountant to determine the specific deductions that are open to you. If you would rather have a more contemporary approach to the problem of securing your receipts, there are now apps that may assist you in converting them into digital format.

Contribute to a Non-Profit Organization

It is always something to be proud of when you do good, but did you know that it could also pay off when it comes time to file your taxes? Donating money to a charity organisation is an excellent strategy to lower the amount of income subject to taxation while also contributing to the betterment of your community.

You might want to consider making a regular contribution to a charity of your choosing as a means of getting a head start on the next end-of-fiscal-year rush. It's a terrific feeling to be able to help others.

Take a Look at Your Deductions

Although this may seem like one of our more apparent tax return suggestions, a surprising number of Australian workers do not claim their deductions even though they are eligible. During tax time, you have the ability to deduct a wide variety of expenses, including the following:

• Business travel
• Work training events
• ATO interest
• Educational courses
• Work-related supplies

The list is not exhaustive, so check with the ATO to find out what deductions and credits you are eligible for. In addition, engaging with an expert in taxes can assist you in claiming all of the deductions that are available to you.

Home and Car Expenses

You may be eligible to deduct certain additional expenses provided that you either drive yourself to work or maintain a home office. Why is this the case? When you use your own vehicle for work or set up a space in your house as an office, you are contributing to the overhead costs of either operating a business or working for one.

To begin, you will need to devise a method for determining how much money you are allotted for your car. Utilizing a mileage tracker app to compute prices and distances incurred over the course of the year is one of the most prevalent approaches. In addition, if you run your business out of your house, you might be able to deduct some of the costs associated with running it, such as the cost of equipment and utilities. Once more, tracking expenses and maintaining receipts is essential.

Travel Expenses

Even though you won't be able to deduct the money you spent taking your family to the beach, there's still a chance you could get some of that money back. Travel for business purposes is the primary focus of this conversation. If you are required by your employer to travel for work, you may be able to deduct a number of expenses, particularly if you stay overnight at a hotel. You can even deduct the cost of your meals, but only if your employer is not also paying for them.

Earn Money Reading Newspapers and Magazines

Do you regularly read online versions of trade magazines or journals? It's possible that you qualify for a tax break. If you pay for a subscription to an online or offline publication that assists you in remaining current in your line of work and you can demonstrate a direct link between the subscription and your taxable income, then it is highly likely that you will be able to deduct the cost of the subscription from your taxable income.

For instance, if a chef or maitre d' subscribed to a food magazine, they would be considered qualified, as would a writer or journalist who subscribed to internet news sites. Both of these examples meet the criteria. The good news is that if the total cost of the membership was under $300, you are eligible for an instant tax benefit.

Invest Money in a Pension or Retirement Account

It's possible that making contributions to your retirement account could be one of the most effective strategies to get the most out of your tax refund. This is especially relevant for workers making an annual salary of less than $52,000. The government will contribute fifty cents to your retirement account for every dollar that you put into it.

Additionally, if you are married and one of you makes less than $40,000 per year, the higher-earning partner can contribute up to $3,000 to the lower-earning partnery's super fund. This applies only if both partners are Australian residents. This results in a tax offset equal to 18% of the original amount. This is the kind of investment that ends up being quite profitable in the long run!

Tax Return Deadline

In most cases, the due date for submitting your return is the 31st of October.

You have until Monday, November 1 to submit your application because October 31 falls on a Sunday this year.

If you choose to employ the services of a registered tax agent, they will typically have special lodgement schedules and will be able to file returns for clients later than October 31st. If you make use of these services, you can avoid the penalties associated with late filing. You have until October 31st to enlist the services of a registered tax agent if you are going to use one.

The Australian Taxation Office (ATO) recommends that you get in touch with them as soon as possible if you are having trouble completing your tax responsibilities or are unable to lodge by October 31st.

Even if you file your own tax return after the deadline, you still have until November 21 to pay any tax bill that emerges from it. This is true regardless of whether you filed your return before or after the deadline.

Common Tax Errors

According to the Australian Taxation Office (ATO), the majority of errors made by Australians while filing their tax returns are either basic mistakes made by persons who file their returns early or failure to disclose all of their income.

As of the end of July, information regarding a taxpayer's job income, bank interest, share dividends, and health fund will be automatically included in myTax. As a result, taxpayers who try to submit their returns early are more likely to be compelled to go back and revise their claim.

The Australian Taxation Office has identified as big mistake-makers those people who make significant purchases at the end of the financial year sales period in the expectation of claiming the entire amount.

Deductions for things bought for work should be divided up according to the number of days worked in the current fiscal year.

Purchases that exceed the $300 threshold are subject to additional depreciation requirements over a set period of time (effective life).

How exactly will COVID-19 make filing tax returns more difficult?

While Australians have long been aware of the potential issues that may arise as a result of the ongoing coronavirus pandemic, they will need to be much more sensitive to the effects of the pandemic when it comes time to file their tax returns in 2021.

According to the Australian Tax Office, there have been a number of adjustments made to the process of generating income tax returns in an environment using the COVID-19 standard.

Changes have been made by the ATO to the tax returns of Australians who fall into the following categories:

• were on JobSeeker payments
• were on JobKeeper payments
• were/are working from home
• accessed their superannuation early
• received stand down payments
• changed jobs

What Will The ATO Be Focusing On In 2021 When Evaluating Tax Returns?

The Australian Taxation Office (ATO) has disclosed the goals it has set for the submission of individual tax returns in 2021.

The following will come under increased scrutiny:

• expenses incurred in the course of one's employment (including the practise of "double-dipping" by claiming deductions for both legitimate and non-legitimate work-related costs)
• rental properties
• gains in value derived from cryptocurrencies, properties, and shares of stock

In the interest of your time and convenience, we have compiled a guide that will explain them in greater depth, so that you are aware of what to look out for.

You can view all of the concerns and recommendations from the ATO by clicking here, which will allow you to better prepare for your tax return.

What Are The Steps I Need to Take to Locate My Tax File Number (TFN)?

Your personal reference number for Australia's tax and superannuation systems is called a tax file number (sometimes abbreviated as TFN).

There is only ever going to be one TFN assigned to you, regardless of whether you change jobs, residential addresses, or even your name; it is a crucial element of your tax records, and it is only ever going to be assigned to you once.

Finding your TFN can be done in a few different methods, including the following:

• If you already have a myGov account that is connected to the ATO, you can access your personal details by logging in, going to "My Profile," and then selecting "Personal details."
• Examine the documents that were sent to you by your employer, such as the most current super statement, the notice of assessment from the previous year, and the payment summary.
• If you have a registered tax agent, you should question them about this.
• If you log in to the Business Portal as a company or organisation, you will be able to view the TFN of the entity displayed in the screen header of the majority of the portal's panels.
• If you are still unable to locate it, you can contact the ATO at the toll-free number 13 28 61 between the hours of 8:00 am and 8:00 pm on weekdays and 10:00 am and 4:00 pm on weekends.

The Australian Second Job Tax Rate

Because you already have another work from which you are earning money and are claiming the tax-free level, the amount of tax that is withheld from your pay at a second job is typically larger than what is withheld at your first employment.

If you increase the percentage of taxes that are deducted from your paychecks, the likelihood of your ending the year with a tax bill is reduced. When you start a new employment, your new employer will provide you with a TFN declaration to fill out. This declaration is required by law.

If you apply for Centrelink's payments, they will provide you with this form to fill out. Centrelink is also a payer.

You have the option, whenever you fill out this form, of claiming the tax-free threshold that is provided by your employer.

If you:

• you should not claim the tax-free threshold for your second job if you are still collecting income from your first employer, even if this income is through the JobKeeper Payment.
• if you are no longer receiving any money (even from paid leave), then you are eligible to claim the tax-free threshold from your second job and have a lower rate of tax withdrawn. this applies even if you had previously been earning income.
• When you begin to receive income from both jobs, you have the option of requesting that one of them withhold taxes at a greater rate so that you do not end the year owing money in back taxes.

How to Establish a Connection Between Your MyGov Account and the ATO

Simply navigate to your myGov account, where you will find a list of services, and choose ATO from the drop-down menu. This will link your myGov account to the ATO.

Choose the "Questions specific to you" option for the quickest and easiest solution possible. You will just need your Tax File Number (TFN) and two other basic pieces of information, such as the details of your bank account and membership in a superannuation programme. A comprehensive list can be found on this page.

The ATO advises that you choose the questions that you want to answer so that you can self-serve. In any other case, you are required to call.