3 Tips You Can Follow to Maximise Your Tax Returns
For many Australians, the end of the financial year is one of the busiest times of their life. While others will breeze through their tax-related activities, others will tug on their hair trying to figure out how to maximise their tax returns to save money. If you are reading this article, chances are you're the latter, and fortunately, you've come to the right place.
You don't want to pay more than what you owe, and this is true for every one of us. However, you also want to find ways to cut down on taxes as much as possible to save money, and that is also true for everyone. Fortunately for you, we're going to share a few tips you can follow to maximise your tax return:
1. Regain Portion of Your Donations
Have you made any donations in the past year? If so, you can get a portion of your money back. For instance, a bucket donation will allow you to gain up to $10 back! You don't need to show any receipt for this at all, and that's free money coming back to you.
On that note, remember that not all donations are eligible for a deduction or a refund. There are specific requirements a donation must meet to ensure it is eligible for a deduction. For example, the donation must be a voluntary transfer that does not get you anything in return. The donation should be at least $2 in value, and you need a way to prove that you donated, such as a receipt. Also, the donation should be either be property, financial assets, or money. Only if all the requirements are met are you able to claim a deduction when tax time arrives.
2. Get Refunded for Your Side Hustle
Back then, Australians weren't required to declare side hustles, if any. However, the ATO has made it a requirement that side hustles be declared and detailed when dealing with taxes. Unfortunately, this also meant that side hustles were taxed.
Nevertheless, even if your side hustle is being taxed, there is a way to claim some benefits from it. For instance, some expenses are deductible, given they are incurred when you earn money. You can also claim for other things like car expenses if the vehicle is used for work-related purposes.
Keep in mind that not all your side hustles must be in your tax return. For example, if you have hobbies that aren't meant to make a profit, you do not have to declare them.
3. Claim Your Work-Related and Home Expense
Many of us today work from home, and many of us operate our business from home. If this is the same case with you, then you can claim your work-related and home expenses. For example, lighting bills, heating and cooling bills, maintenance bills, and any other costs to run your at-home business can all be claimed. Just keep in mind that these things can be calculated differently.
If you aren't working from home, there's good news: you can still claim from expenses. For instance, you can claim from the cost of buying protecting clothing, uniforms, self-education tools, tools, equipment, and the like.
Do note that, for work out of home or in the home, these claims applies strictly to things related to your job. If it is outside of that spectrum, you cannot claim from it.
As you earn more and more money through your job and side hustles, the more tax you're going to have to pay. This thought can seem terrifying to you, especially knowing that your hard-earned money is going to the ATO. Fortunately, there are many things you can do to deduct your taxes, and it all starts by knowing where to look for the deductions in the first place. We highly recommend that you reach out to professional accountants to assist you in this endeavour. Not only will they keep you on top of your taxes, but they will also help you identify ways to cut down on unnecessary payments!
New Wave Accounting offers end-to-end accounting and bookkeeping services to help various businesses grow effectively. If you are looking for accountants at Gold Coast to assist you with tax time for maximum savings, work with us today!