Tax time is never too far away when thinking about getting the most out of your tax return. Most people plan to maximise their tax return when lodging it, but many miss out on money through not taking advantage of deductions and other opportunities to save.
Prepay Bills As Often As Possible
Paying some bills, such as union dues and professional organisational fees, in a yearly lump sum can help you considerably come tax time. If you claim a deduction this year for expenses that extend into the following year, it helps you to get money back on them sooner.
You also may get an improved refund in the current year.
Use a Super Fund
Super funds can help individuals in certain circumstances. It is possible to use super contributions to offset the tax obligations of a married or civil partner.
If one member of a couple makes no money or earns low enough wages, he or she can receive from the other up to $3,000 and also get a tax write off of 18 per cent. At the maximum rate, that equals $540.
Low wage earners may also contribute money to their super. The government will kick in 50 cents for each dollar placed in the super.
Get Rid of Loss Running Investments
Earnings from investments and shares are subject to taxation. You can, however, offset the impact by selling off assets sitting at a loss. Capital losses can then help to pare down what you pay in capital gains. Do not, however, try to game the system by repurchasing assets sold as a loss. The government does track this and assesses appropriate penalties.
Claim All Possible Deductions
It seems like common sense, but this often slips by many taxpayers. It does require diligence, but a little regular effort now can save big on taxes later on.
All work-related expenses, for example, that did not get refunded by your employer may be deducted from taxes. These include a wide range of expenses, including, but not limited to:
- Spending on vehicle and travel, including commute
- Business-related clothing and laundry
- Overtime meals
- Cellular phone service and internet, if business-related
- Tools and other work-related needs
Of course, you need to prove that you actually purchased these goods and services so make sure to . . .
In case of an audit, you must have receipts and other records handy to prove that you were entitled to deductions claimed.
Experts suggest that you separate invoices, receipts, and other paperwork into easy to access files, both electronic and hard copy. Make sure they remain handy and in good condition. You can use them to help to estimate your tax return as well.
Also, plan to keep them forever. You never know when an audit may occur after you get your tax return.
Donate to Charity
Even small donations to charity can add up. You may deduct any donation over $2, regardless of the charity. Just make sure to keep all receipts and file them away.
Call us today to learn more about your taxes. We can help you to learn more about deductions and also to get a tax refund on the spot when you lodge.