Top 20 Tax Tips: How to Get The Most Out Of Your Tax Return
Posted August 4th, 2009 and last modified July 11th, 2011Once again we are preparing to do our Australian tax returns. To get the most out of your tax return we have looked into the 20 most asked questions to give you the best possible tax returns in 2010.
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Australian Tax Return Demystified:
When it comes to filing our tax return many people have no clue that this can be done online in the form of lodging an e-tax claim. However, while filing out an online tax return might be easy for some, for businesses it is a little more complicated that that.
By looking at the frequently asked tax questions you will learn how to optimise your tax return for best results right off the bat. So without further ado, here are 20 questions to help you understand your tax needs better:
1. – When is the tax lodge deadline this year: If you choose the DIY approach to lodging a tax return, then the date to keep in mind is the 31.October 2010. If on the other hand your lodgement is done via a tax agent then you’d have to contact them by the same date if you are doing this for the first time. They have their own deadlines and it might be a good idea to check.
2. – Do I need receipts for work-related expense claims? Australian’s can claim undocumented expenses up to $300. Once the limit is reached you need to show proof. It is also advisable to keep this receipts since the tax office can require to see them should they do a check on you.
3. -Where can I find out more about what to claim? The best place to start is the Australian tax office. They provide free, detailed guides explaining what you can claim and what not. Visit the taxation website now.
4. – I frequently donate money to charities. Can I claim these with the tax office? Yes you can. For ‘bucket donations’ you can claim a deduction equal to your contribution, up to $10 in your 2008-09 tax return. You won’t need prove of receipt for this either. The same goes for donations made via banks.
5. – What is e-tax pre-fill? The Australian Tax Office offers a service whereby they pre-fill your tax lodgement. All you need to do is review it and fill out the missing details. Pre-filling includes a range of categories.
6. – What do I have to do if I fall into the group of targeted professionals? Each year, the tax office targets a group of professionals for unusual claims that fall outside the norm of their industry. This year the focus will be on truck drivers, sales reps, electricians and same sex couples. The best way to make legit claims if you fall into any of these categories is by providing receipts and prove of claim.
7. - I’ve never lodged a tax return: If you are new to tax lodgements then the easiest way to learn the ropes is by visiting the Australian Tax Office website. You’ll find a range of tips to help you get started.
8. – Can I claim my rental property costs? Yes you can. But to find out exactly what you can claim visit the rental section of the ATO.
9. – Are there any capital gains tax for sold properties? Most likely you will. It is always recommended to include any gains or losses you make on any property to own or have owned. The ATO will then calculate how much you have to pay – if at all.
10. – Is bank account interest taxable? Yes it is. You should already have a statement from your bank that shows how much interest you earned.
11. - What is an assessment sequence number? And where can I find it? This is an itemised statement that shows your taxable income and how much you have paid during the year. It also shows any likely refunds. You can find this number on the top of your notice of assessment. You will receive this after lodging a tax return.
12. – How does a same sex relationship get taxed? As of the 1 July 2009, same sex couples will be treated equally to any other couple.
13. – How about the contribution to my first home saver account? Account holders of these accounts might get a government contribution depending how much money was paid into the account by you during the year. Earnings on the accounts are not taxable so you won’t need to declare income earned from such an account. But, if you’re not required to lodge a tax return, you have to lodge a First home saver account.
14. – Can I amend mistakes made on my tax lodgement? You can lodge an amendment to your return if you notice a mistake made after you lodge your tax return. You could be liable to pay a penalty depending on the circumstances.
15. – How do I get my refund? Usually you receive a cheque. Or the refund can be paid to your account. If you are desperate for a fast refund then doing an e-tax lodgement will see the refund made to you within two weeks in most instances.
16. – How can I check whether my tax agent is legit, re. registered? Ask to see their Certificate of Registration of Tax Agent, and confirm it by contacting the Tax Agents’ Board.
17. – Can I receive free help with my tax return? If your income is below $40,000 a year and need help in lodging your tax return then you might qualify for free help from a tax office trained volunteer. Call 13 28 61 to find out more.
18. – Is there free help for businesses to lodge a tax return? A variety of assistance programs and seminars are available to Australian residents.
19. – How can I lodge a Family Tax Benefit claim? New regulations as of the 1 July 2009 require you lodge any family related tax claims with the Family Assistance Office.
20. – Can I claim children school expenses under the Education Tax Refund? If you get paid family tax benefit part A for children at school, then you are eligible for the Education Tax Refund. The Education Tax Refund helps with costs for primary and secondary school and pays up to $375 for each primary school child and up to $750 for each secondary school student’s eligible education expenses.
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