Some find tax season stress-free, while others say that it is a little stressful situation. However, the level of stress depends on how you organise the records of your income and expenses. It is suggested to pay what you owe, but at the same time, you need to find new ways to maximise tax savings. If you have tax return accountants by your side, then they can help you increase tax refunds.
How to Save More on Tax Returns?
When it is the end of the financial year, you need to pay attention to preparing for your tax return to increase the tax refund you get from your tax claim. There are some strategies that will help you know to get the most out of your tax returns. Therefore, whether you are using your tax savings for a vacation, or paying bills, let’s look at some ways to maximise your tax refund:
Claim vehicle and travel expenses
It doesn’t include the expense of transport between home and work, you may claim a deduction if you use your vehicle or car for work in various places.
Home office expenses
Expenses for your home office could include your phone, computer and other technological gadgets and operating expenses such as internet subscription. Depreciation can be possible, but you can claim the part of expenses that are related to work.
Dividends, interest, and other investment income deductions
Investing journals, interest, subscription, account fees, computer depreciation, and internet connection are all examples of investment income deductions.
If your study correlated with your job, you may claim deductions for the expenses that include student union fees, course fees, internet, textbooks, some travel, and home office expenses.
There are some expenses you are liable to claim as a deduction even though they are not related to your work. These include:
- personal super contribution
- the expenses of managing your tax affairs
- income protection insurance
- gifts and donations
- costs related to making money from investments
Income that Needs to be Declared
Some sort of income may be considered self-evidently taxable, but here is a list of frequent income sources that need to be declared on your tax return.
- Income from work
- Government payouts, annuities and super pensions
- Foreign earnings
- Made money through sharing economy
- Profits from a partnership, business, or a trust
- Crowdfunding earnings
- Profits from investments (including dividends, interest, capital gains and rent)
Type of Information that Needs to Complete Your Tax Return
Take a look at the following points to know what type of information you need to complete your tax return:
- Summary of payments: It includes money you received from your pension, job or government benefits.
- Bank statements: These include any interest you earned and costs you paid during the time period.
- Records from your rental property: You’ll almost probably get an annual tax statement outlining your income and expenses if you hire a property manager. If not, you must gather information about your earnings, your outgoing costs, and any capital gains or losses from the sale of the property.
- Foreign income: Complete information regarding overseas pensions and other international income sources.
When you claim deductions, you need to keep a record of every expense. You can share this information with your taxation accountants at tax time to file your tax return easily. A good tax accountant can help you get the most out of your tax return and give you strategic tax advice to reduce the tax you will pay in the future. You work hard to make money, so it makes sense to make a strategy to get a larger tax refund. Tax accountants can also help you with tax advice to help you save more on taxes. Thus, it would be worth seeking help from an accountant.
Look for a professional tax agent in Melbourne who really invests time to know your business and what your aim is in life. As you develop a relationship with your accountant, their understanding of your business will also improve. For accounting solutions, you can contact Reliable Melbourne Accountants.