Paying taxes can become a stressful ordeal if you do not have relevant information and details regarding the subject. As the deadline approaches for filing taxes, getting up to speed on the deductibles you can claim, will help you save a lot of money by reducing your taxable income. This can help you make the most of your time and money. The Australian Taxation Office (ATO) provides for a number of deductibles and expenses that you can claim when filing your taxes. You can also contact Arora accounting services your local Accounting services North Lakes to understand the whole process in a better way. You can go through this article in order to find out more about the different tax deductibles that you can use for your benefit.
Deductions you can claim
When completing your tax return, you’re entitled to claim deductions for some expenses, most of which are directly related to earning your income.
Work-related expenses
To claim a work-related deduction:
- you must have spent the money yourself and weren’t reimbursed
- it must directly relate to earning your income
- you must have a record to prove it.
If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion. Work expenses reimbursed to you by your employer are not deductible.
We can seek information from your employer if we think you have claimed a deduction for an expense that you have already been reimbursed for.
You may be able to claim a deduction for expenses that directly relate to your work, including:
- Vehicle and travel expenses – including travel between work and home
- Clothing, laundry and dry-cleaning expenses
- Home office expenses
- Self-education expenses
- Tools, equipment and other assets
- Other work-related deductions
Employees (including casuals) can claim work-related expenses in the financial year they are incurred. This is the case even if you start employment in June but don’t receive income until the next financial year, you can claim deductions for work-related expenses incurred in June.
If you employ someone to assist you in your employment, you can’t claim a deduction for employing that person.
Other deductions
You may also be able to claim a deduction for:
- ATO interest – calculating and reporting
- Cost of managing tax affairs
- Gifts and donations
- Interest charged by the ATO
- Interest, dividend and other investment income deductions
- Personal super contributions
- Undeducted purchase price of a foreign pension or annuity
Occupation and industry specific guides
To find out more about income, allowances and deductions you can claim for work-related expenses in your industry or occupation, see Occupation and industry specific guides.
Credit: https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/
Before filing your taxes, going through all tax-related documentation and claimable expenses can help you make the most of your money and maximize benefits. You can get relevant information on the official website of the Australian Taxation Office (ATO). Did you know ? we can help you with hassle free Accounting/Bookkeeping and also do your taxes on time. Contact us today at Arora Accounting Services your local Accounting Services North Lakes. Arora Accounting Services.
CALL: 0426 199 277