Claiming deductions on your taxes simply makes sense. While the government has not made it easy to learn and understand all deductions, it is worth your while to know them so that you may claim tax back. You could save hundreds, even thousands of dollars against your tax bill.
Take care, however. Claiming the wrong deductions could land you into thousands of dollars of penalties and fees.
What You Should Claim
Work-related expenses represent one of the largest categories of tax deductions available. For example, you can claim mileage on your tax return if applied to work travel or even your commute.
Other items that can receive a deduction are work-related clothing and laundry expenses, communications-related expenses when used for business, and even meals when purchased during work overtime.
You can also include deductions for certain expenses while running your own small business from home.
Union and Professional Fees
Fees paid for union dues and organisations related to professional association or development can be deducted from your taxes.
Experts suggest that paying dues and/or fees in a single yearly lump sum can result in higher amounts disbursed to you when you claim your tax refund.
Tax Agent Fees
The government has also included a tax deduction to give people incentives to have taxes done professionally. You may deduct tax agent fees from last year to file on this year’s tax return.
What You Should Not Claim
Your Entire Personal Mobile Phone Bill
You may deduct specific calls and other expenses associated with business-related phone use, even if made on your personal phone.
Deducting your entire personal phone bill, even if used for business part of the time, is illegal and could subject you to penalties and fines.
Personal Travel Expenses
Work travel expenses are covered under approved tax deductions. If you do some business during a personal trip, however, you may not deduct the entire slate of expenses for the trip.
Make sure to diligently separate out, when possible, your separate expenses for business if work is done during a personal trip.
Memberships That Do Not Have Union or Professional Connection
Some organisations clearly have a professional basis. Others clearly do not.
In between are grey areas where one could make a case as to whether or not fees can be deducted.
If you have a question about whether or not your professional organisation fee, or any other deduction, is allowable, call the tax experts at Quickle today. Make sure that when you claim your tax return that it also includes the peace of mind that comes from proper professional preparation.
And don’t forget that tax preparation fees are tax-deductible.