How to pay the correct amount for your tax
Tax time can be stressful if you don’t know where you can save extra cash. It’s important to know what you can claim and how to keep on top of deductions for a good outcome at tax time. We are qualified accountants that will find you ways to pay less tax and keep more money in your pocket.
There are many ways in which this can be done, but here are the three best ways to avoid paying so much to the ATO.
Maintain good tax records
It’s important to keep receipts for deduction claims, so that you can present them to the ATO if they enquire about your deductions. Nowadays, the ATO is incredibly cautious regarding tax deductions.Every year, thousands of people miss tax deductions they could have easily claimed. That amounts to millions of dollars kept by the ATO – money that could have been kept by the taxpayer.
Are you keeping track of each deduction? All you have to do is keep your receipts, as this is the best way to remember everything you are able to claim. This means more money for you come tax time. Record keeping doesn’t have to be a painful chore. Simply put aside a few minutes each week to download statements, store your receipts and update your logbooks.
You can deduct charitable donations
Each donation over $2 to a registered charity is tax deductible. Donating to charity is a worthwhile thing made even better by the fact that you can claim the amount come tax time. This makes it a win-win for everyone!
Once you make a donation, keep the receipt. Keep it in your tax receipt folder for when tax time rolls around and enter the total into the “ donations” section of your tax return. This being said, the money is not deposited directly into your tax return. The total amount is subtracted from your taxable income, meaning you receive a percentage in your return.
Claim all that you can
Typically, if you have to spend money on anything that regards to your work, you can claim it.You can even claim and item you use for part-work, part-personal usage, claiming the work-related element of the item.
There are numerous ways in which you can check whether something is claimable or not.
Ensure you are on top of your deductions
Deductions are the main way in which you can save big bucks during tax time. It doesn’t have to be a difficult process: simply keep track of your records and claim what you can come tax time.
Remember to claim things that are work-related, keeping a list of which things you can actually claim. By following these three simple steps, you will be thrilled at how much you receive come refund time.