The closing of a financial year means it’s time to start planning for tax season. This time can seem complicated, but tax time does not have to be a burden. Earning an income during a financial year means you must lodge a tax return. The tax return determines whether you have a net tax debt or are entitled to a tax refund. Spending a little time looking over your finances can go a long way in helping you save money because you can reap the benefits of deductions. Here are five essential tips to keep filing your tax return as painless as possible.
1. Make a Choice on How to Lodge Your Return
During tax season, you can choose between lodging them yourself or using a tax agent. An agent completes your return quickly and accurately. Although there is a fee involved, it’s the most stress-free option. All you need to do is make an appointment. When you choose to self-lodge, a registered tax agent checks your return for accuracy before it’s submitted.
2. Get Your Paperwork Ready
Gather the sorts of documents you need before you start the tax return process. Use labelled folders and save relevant receipts throughout the year to avoid spending hours tracking down receipts. Folders will save time and can help you get more money through tax refunds.
3. Understand the Tax Rules and Deadlines
There is countless amounts of0 online information to guide you through lodging your tax return. Although your return covers the financial year from 1 July to 30 June, you can lodge it up through 31 October of that year. If you don’t have the money to pay on time, ATO can design a payment plan to suit your circumstances.
4. Get Professional Advice
Aregistered agent can help you understand expenses you are eligible to claim on your tax return. Many peoplecan lodgetheir returns by themselves, but some sound professional advice can be beneficial. A professional will help you prepare your return well in advance and advise you on howto reduce your taxable income. They reduce stress and save you time. Also, the costs related to professional tax services are tax-deductible.
5. Know Your Deductions
When completing your tax return, you are entitled to claim a deduction of expenses related to earning your income. The easiest way to get a higher tax refund is to claim deductions for work-related expenses that the employer has not reimbursed. These costs may include vehicle and travel expenses, a mobile phone, phone services, internet, and home phone expenses. You are legally entitled to these.
When you delay asking the professionals for help, you can get into trouble or run out of time to deal with your taxes. You could lose hundreds or thousands of dollars in potential tax refunds. The best option is to hire a professional when you have more to consider than just your work income. Choose DEPPRO Pty Ltd to handle your taxation needs to make tax season stress-free. Contact us today.