How to Maximise Your Tax Return

Do you have any idea how to maximise the amount of money you get back from your taxes? If not, have no fear; we are here to assist you in any way we can. In this piece, we will discuss various strategies that you may implement in order to get the most out of your return. Read on for some of our best advice if you want to maximise the amount of money you save, get the most for your money, or do either of these things!

Do you call Australia your permanent home? Have you been employed for a significant amount of time and accumulated a significant amount of savings? If that is the case, then there is no better time than the present to get started on optimising your tax return with the help of a little bit of direction from this blog post.

A tax return is simply an account or record of taxes that an individual has paid or is obligated to pay. In other words, a tax return is exactly what it sounds like. When someone does their income taxes, they fill out a form that details how much money they made throughout the year as well as any deductions that may have been available during that time period. In other words, when someone does their income taxes, they are completing a form.

Do you anticipate receiving a tax refund for the current year? If this is the case, it is imperative that you make every effort to derive the maximum benefit from it. This article will provide an overview of some of the most helpful tax preparation strategies that can help you maximise the amount of money that you receive from your tax return.

Tax Return 2021: The Best Advice And Techniques

Many taxpayers find that the process of submitting their tax returns at the end of each fiscal year is not an easy one to complete.

After a turbulent fiscal year in 2020-21, which was rocked by the pandemonium caused by the coronavirus, this year's return is not going to be any smoother.

Watch the video that is above to learn about the top ten tax deductions and credits that you can claim on your return for the current year.

Over the past year, the work status of a significant number of people in Australia has changed, at the very least once but most likely more than once.

It is estimated that millions of people have received wage subsidies from the government in the form of JobKeeper or JobSeeker payments.

Tax Return Deadline

In most cases, the due date for submitting your return is the 31st of October. On the other hand, because October 31st comes on a Sunday this year, you have until November 1st to submit your application.

If you choose to employ the services of a registered tax agent, they will typically have special lodgement schedules and will be able to file returns for clients later than October 31st. If you make use of these services, you can avoid the penalties associated with late filing. You have until October 31st to enlist the services of a registered tax agent if you are going to use one.

The Australian Taxation Office (ATO) recommends that you get in touch with them as soon as possible if you are having trouble completing your tax responsibilities or are unable to lodge by October 31st.

Even if you file your own tax return after the deadline, you still have until November 21 to pay any tax bill that emerges from it. This is true regardless of whether you filed your return before or after the deadline.

Frequently Committed Fiscal Errors

According to the Australian Taxation Office (ATO), the majority of errors made by Australians while filing their tax returns are either basic mistakes made by persons who file their taxes early or forget to list all of their income.

As of the end of July, information regarding a taxpayer's job income, bank interest, share dividends, and health fund will be automatically included in myTax. As a result, taxpayers who try to submit their returns early are more likely to be compelled to go back and revise their claim.

The Australian Taxation Office has identified as big mistake-makers those people who make significant purchases at the end of the financial year sales period in the expectation of claiming the entire amount.

An official spokeswoman for the ATO stated that deductions for things acquired for employment should be proportioned based on the number of days held in the relevant fiscal year.

"Purchases that exceed the $300 limit are required to be depreciated over a certain number of years (effective life) as well."

How Will COVID-19 Make Tax Returns Complicated?

The inhabitants of Australia have long been mindful of the complexities that the coronavirus pandemic continues to bring, but they will now need to be more finely attuned to the repercussions of the epidemic when they are filing their tax returns in 2021.

According to the Australian Tax Office, there have been a number of adjustments made to the process of generating income tax returns in an environment using the COVID-19 standard.

Changes have been made by the ATO to the tax returns of Australians who fall into the following categories:

• were on JobSeeker payments
• were on JobKeeper payments
• were/are working from home
• accessed their superannuation early
• received stand down payments
• changed jobs

What Will The ATO Be Focusing On In 2021 When Evaluating Tax Returns?

The Australian Taxation Office (ATO) has disclosed the goals it has set for the submission of individual tax returns in 2021.

According to a spokeswoman, the following will be subject to increased scrutiny:

• job-related expenses, include claiming deductions twice and claiming expenses that aren't related to work
• rental properties
• gains from cryptocurrencies, properties, and stocks

We've prepared a guide for your convenience that goes through things in greater detail so you'll know what to look out for.

Where Can I Look to Locate My Tax File Number (TFN)?

Your personal reference number for Australia's tax and superannuation systems is called a tax file number (sometimes abbreviated as TFN).

There is only ever going to be one TFN assigned to you, regardless of whether you change jobs, residential addresses, or even your name; it is a crucial element of your tax records, and it is only ever going to be assigned to you once.

Finding your TFN can be done in a few different methods, including the following:

• If you already have a myGov account that is connected to the ATO, you can access your personal details by logging in, going to "My Profile," and then selecting "Personal details."
• Examine the documents that were sent to you by your employer, such as the most current super statement, the notice of assessment from the previous year, and the payment summary.
• If you have a registered tax agent, you should question them about this.
• If you log in to the Business Portal as a company or organisation, you will be able to view the TFN of the entity displayed in the screen header of the majority of the portal's panels.
• If you are still unable to locate it, you can contact the ATO at the toll-free number 13 28 61 between the hours of 8:00 am and 8:00 pm on weekdays and 10:00 am and 4:00 pm on weekends.

Tips You Must Follow to Increase Your Tax Return Every Year

Do you have opportunities to increase the money you've worked so hard to earn? When trying to get the most money back from their taxes, a lot of people miss out on potential deductions because they either aren't aware of them or just aren't organised enough to take advantage of them.

Learning how to raise the amount of money that you keep is an excellent method to make the most of your tax return, especially considering that the typical tax return in Australia is approximately $2,574.

How do you get started, particularly if you are not an experienced tax preparer? The process of getting ready for tax season is a lot simpler these days than it was in the past. You'll be able to dramatically reduce the amount of stress (and time) associated with getting your financial life in order if you use a few straightforward programmes and become familiar with the fundamental laws governing deductions.

When the first of July rolls around, we've compiled some crucial tax recommendations that will make it easier for you to file your tax return. Make sure that you are not parting with any more of the money that you have worked so hard to obtain than is absolutely necessary.

Calculate Your Tax Bracket

The first thing you need to do to get the most out of your tax return is to double check that the tax bracket you put yourself in is correct. You won't have a complete understanding of the scope of your tax responsibilities until you determine which tax bracket you fall into.

From one year to the next, the tax brackets do not always remain the same. To gain a better idea of where you stand, you should consult the individual and married income tax rates provided by the Australian Taxation Office. This should only take a few minutes of your time. Once you have determined which tax bracket you fall into, you will be in a better position to examine the deductions you are eligible for.

Make a System for Receipts

You are not the only one who shoves their receipts into a secret drawer or a large envelope in order to stay organised. Having said that, there is a more effective approach. Because receipts are something that are very simple to lose, you will need to put a system into place to help you keep track of them. In addition to this, the ink on the paper may become less visible with time, leaving you with a sheet of blank paper.

During tax season, one of the best methods to save money is to carefully keep track of and save all of your receipts. You might be astonished to learn exactly how many things you are eligible to claim, some of which you might not have even been aware of.

Going forwards, you should make it a priority to organise and store all of the receipts that are applicable to your situation, and you should consult with an accountant to determine the specific deductions that are open to you. If you'd rather use an up-to-date method to store your receipts safely, there are now apps that can help you digitise them so you can access them whenever you need them.

Make a Donation to Charity

It is always something to be proud of when you do good, but did you know that it could also pay off when it comes time to file your taxes? Donating money to a charity organisation is an excellent strategy to lower the amount of income subject to taxation while also contributing to the betterment of your community.

You might want to consider making a regular contribution to a charity of your choosing as a means of getting a head start on the next end-of-fiscal-year rush. It's a terrific feeling to be able to help others.

Analyse Your Deductions

Although this may seem like one of our more apparent tax return suggestions, a surprising number of Australian workers do not claim their deductions even though they are eligible. During tax time, you have the ability to deduct a wide variety of expenses, including the following:

• Business travel
• Work training events
• ATO interest
• Educational courses
• Work-related supplies

There are many more deductions and credits available; check with the ATO to find out which ones you are eligible for. In addition, engaging with an expert in taxes can assist you in claiming all of the deductions that are available to you.

Home and Car Expenses

You may be eligible to deduct certain additional expenses provided that you either drive yourself to work or maintain a home office. Why is this the case? When you use your own vehicle for work or set up a space in your house as an office, you are contributing to the overhead costs of either operating a business or working for one.

To begin, you will need to devise a method for determining how much money you are allotted for your car. Utilizing a mileage tracker app to compute prices and distances incurred over the course of the year is one of the most prevalent approaches. In addition, if you run your business out of your house, you might be able to deduct some of the costs associated with running it, such as the cost of equipment and utilities. Once more, tracking expenses and maintaining receipts is essential.

Travel Expenses

Even though you won't be able to deduct the money you spent taking your family to the beach, there's still a chance you could get some of that money back. Travel for business purposes is the primary focus of this conversation. If you are required by your employer to travel for work, you may be able to deduct a number of expenses, particularly if you stay overnight at a hotel. You can even deduct the cost of your meals, but only if your employer is not also paying for them.

Earn Money Reading Newspapers and Magazines

Do you regularly read online versions of trade magazines or journals? It's possible that you qualify for a tax break. If you pay for a subscription to an online or offline publication that assists you in remaining current in your line of work and you can demonstrate a direct link between the subscription and your taxable income, then it is highly likely that you will be able to deduct the cost of the subscription from your taxable income.

For instance, if a chef or maitre d' subscribed to a food magazine, they would qualify, as would a writer or journalist who subscribed to internet news sites. Both of these examples meet the criteria. The good news is that if the total cost of the membership was under $300, you are eligible for an instant tax benefit.

Consider Investing in a Super Fund

It's possible that making contributions to your retirement account could be one of the most effective strategies to get the most out of your tax refund. This is especially relevant for workers making an annual salary of less than $52,000. The government will contribute fifty cents to your retirement account for every dollar that you put into it.

Additionally, if one of the partners in a married couple makes less than $40,000 annually, the person with the higher income can contribute up to $3,000 to the retirement account of the one with the lower income. This results in a tax offset equal to 18% of the original amount. This is the kind of investment that ends up being quite profitable in the long run!

How to File, Maximise, and Prepare Your Tax Return

Because tax season is drawing near, you might be interested in the following deduction suggestions, which could potentially assist in increasing the amount of money that is refunded to you.

Your tax return may be impacted by a variety of factors, such as your sources of income from employment, investments, and government aid, such as any JobSeeker payments you may have received during the fiscal year.

Whether you have work-related expenses, such as those from travel, equipment, clothing, or what you may have spent if you had been working from home, is another aspect that can play a role. Other elements that can play a role include the following:

Who Is Required To File A Tax Return?

There are going to be certain individuals who won't be required to submit a tax return. People with lower levels of income and certain older people in Australia are typically included in this category.

Those who are required to file a tax return are often those who have reached specified income thresholds or who have earned particular sorts of income.

The online quiz provided by the Australian Taxation Office (ATO) can assist you in determining whether or not you are required to submit a tax return.

What Kinds Of Documents Must Be Submitted Along With Your Tax Return?

When you're ready to submit your tax return, some of the things you'll need to have on hand include, but aren't necessarily limited to the following:

• Your tax file number
• Your bank account information, so that the ATO is aware of where to deposit any potential refund to which you are entitled
• Any income statements or payment summing ups that have been provided to you by your employers
• Information regarding assistance and relief packages pertaining to payments made by Centrelink (Services Australia)
• Specifics concerning any other potential sources of revenue (from business, property, investments or shares)
• statements or receipts for the expenses that you are claiming as a deduction on your taxes
• Any information you may have on a private health insurance plan
• if you have made any charitable donations, the receipts for those donations.

Note that if you file your tax return by yourself using myTax, which is accessible through the myGov website and the ATO app, the vast majority of the information required from your employers, banks, government agencies, health funds, and other third parties will generally be pre-filled for you by the end of July.

What Tax Deductions Are Available When Filing a Tax Return?

The majority of tax deductions will be tied to one's employment. However, a work-related item will only be deducted if you weren't reimbursed by your employer, it directly ties to you making an income, and you have a record of the expense, such as a receipt (unless the amount you're claiming is $300 or less, in some situations).

Work-related tax deductions may include:

• Vehicle and travel costs
• Uniforms, as well as work attire that is specialised for the occupation and protective in nature, including footwear
• Expenses associated with working from home, such as those for energy, the phone, and internet. Take note that a simplified procedure for claiming these deductions will be in effect once again this year (more info on this below)
• Expenses related to your profession that are associated with your education, such as tuition, textbooks, dues, and subscriptions
• Tools and equipment, such as sunscreen and sunglasses if you work outside, or a laptop computer and the applicable software if you work in an office or at home. Tools and equipment, such as sunscreen and sunglasses if you work outside.

Check out the ATO's profession and industry specific deduction guides if you want further information on deductible items that are connected to your particular line of work.

In the meantime, if your expenses are for both business and personal use, you can only claim a deduction for the portion of the expense that is work-related. This could, for example, be fifty percent of the cost of the bundle that includes your phone and internet service.

Another scenario in which you wouldn't be able to deduct your entire trip as a business expense is one in which you travel on a business-related trip out of state, such as to a conference or a study session, but you also take a vacation during that time.

Additional deductions that you might be eligible to claim include the following:

• Certain personal super contributions if you’ve made any
• Expenses relating to investments, including interest, dividends, and others
• Donations and gifts given to organisations that qualify as tax-exempt gift recipients, such as charities
• If you used a tax preparer, the fee for your return from the previous year.

Check out the myDeductions function that's available in the ATO app if you're having problems maintaining proper organisation of all of your receipts. This enables you to save a record of your deductions during the course of the fiscal year, which you can afterwards upload when it comes time to submit your return.