Here are 5 useful tips you could use to prepare yourself for the next tax return. A good habbit could save your some money from going directly to the ATO.
1. Keep receipts!
It is very useful to keep all the receipts of your purchases and spending. What is more important is keeping them in the same folder, label it properly as "Tax Receipts", you will save considerable time and effort during your tax filing. For the more computer savvy group, we strongly recommend snapping a picture of your receipts immediately, upload to a folder with the name "Tax Receipts" in the Cloud Photo. The benefit of doing so is that you can retrieve it anywhere you are, avoid having the problem of fading receipts and can easily sort it chronologically. It will speed up your tax filing process.
2. Be neat!
Consider preparing your tax return by computer. Using a computer will help to keep your tax return clear and neat. It is also very useful from the point of view of the tax officer, who will decide whether to audit your return. If your record is neat and tidy, they will have less suspicion on you. Besides, virtually all reputable tax professionals are using softwares in assisting or advising their clients. Hence, it is very easy to get tax advice if you are seeking their help. The easier to understand your record, the less time they will spend, and the less hours they can bill you. Remember, time is money!
3. Document deductions!
If you are making any unusual deductions, especially large items, always remember to attach a copy of such documentary proof along with your tax return. E.g. copies of repair receipts, canceled cheques, insurance reports, and pictures are always a good idea. While this may not stop the tax assessor from making further enquiries into your return, chances are he or she may think your documentation looks reasonable, and won't cause further audits on your return.
4. Prepare Early!
Always prepare your tax return early and avoid any last minute rush. If you let everything till the very last minute, chances are you will miss out some deductions or legitimate entitlements. No matter how negligible the items could be, remember, at the end of the day, it is not how much money you are making, it is how much money you have saved!
5. Home Office Deductions
Do you know that you may be entitled to claim deductions for home expenses including a computer, phone or other electronic devices you are required to use for work purposes. Hence, remember to include your nice mushy cushy office chair in your next tax return!
This is not a tax advice. Please consult your tax consultant if you have any doubts.
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