Common Tax time Mistakes

There are a number of easy traps you can fall into when filing your tax return. Avoid these common mistakes and get the most out of your individual tax return this year. The ATO has become extra vigilant in the last few years and has been imposing penalties for not taking proper care in lodging the tax returns. Please review the following section to check for anything you might miss:

Not declaring all of your income

It is not just the obvious income from your current job the Tax Office needs – everything from the interest earned on bank account to the dividends from the shares you may own all need to be declared. You will need to track down group certificates from all your jobs and declare that too, along with any investments in your name.

Not having evidence to back up your claims

Without receipts for your expenses, you can only claim a maximum of $300 worth of work related expenses.Chances are good that you can claim more than $300 and you can boost your tax refund – if you keep the receipts or evidence to support your claims. Without receipts, ATO can ask you to repay the difference plus interest charges and possible penalties added on top.

Deductions that relate to motor vehicles, or rental property expenses

We get plenty of questions around claiming costs for your car or motor vehicles as well as rental property expenses. In addition, rightly so – there are some complex rules around them, including what records you need to keep. If you get it wrong and the ATO finds out, you could be facing an audit and a hit to the hip pocket. We can help explain the rules and make sure you have the right documents.

Wrongly claiming work-related expenses

Office workers can claim travel costs to meetings, but not to their main office. Point is, the Tax Office is very specific about what can be claimed and what cannot. Your accountant can explain these, and find some deductions you might not even know you are eligible for deduction.

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Common Tax time Mistakes

posted 22 October 2016

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