Maximise your legitimate tax deductions
Every year the ATO target different deductions. This year phone, internet and work related car expenses are some of the expenses that are on their hit list.
These deductions will be monitored closely, and taxpayers are warned to make sure they have adequate receipts and proof for their tax deductions. Make sure you claim all the legitimate deductions you can to reduce your taxable income and pay less tax, and remove the risk of unwanted attention from the ATO at the same time.
Here are some TIPS from Jim’s Tax on how to get things right and pay less tax.
Tip 1 – Benchmarks
The ATO have benchmarks for each occupation and, if you are claiming deductions outside of these benchmarks then be prepared for a phone call. Make sure you have all the receipts to prove your claim.
Tip 2 – Claim all potential Deductions
Common work related expenses that people claim are:
- Travel expenses – You can claim some travel expenses if they are directly connected with your work, but generally you can’t claim for travel between home and work.
- Vehicle expenses – You can claim a deduction for work-related expenses if you use your own car in the course of performing your job as an employee.
- Laundry, clothing and dry cleaning – You can claim a deduction for the cost of buying and cleaning occupation specific clothing, protective clothing and unique distinctive uniforms.
- Home office expenses – You may be entitled to claim deductions for home expenses including a computer, phone and other electronic devices you are required to use for work purposes.
- Self- education expenses – You may be entitled to claim a deduction for self-education expenses if your study is work related.
- Tools and equipment – If you buy tools, equipment or other assets to help earn your income, you may be able to claim a deduction for some or all of the costs.
(information supplied by https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/)
Tip 3 – Use a Specialist
We recommend you get things right the first time and claim the maximum deductions you are entitled to by using a Registered Tax Agent. Make sure they are registered by checking http://www.tpb.gov.au/.
Tip 4 – Cost versus Benefit of using a Tax Agent
As in everything you need to consider whether you will be getting value for money. A good adviser will ensure you get it right the first time and maximise your deductions.
To find out more call 131 546 or go to http://www.jimstax.com.au
Visit the Jim’s Bookkeeeping/Tax YouTube channel for additional information.