Tax Return Tips

June 15th, 2010

Once again it’s almost time to begin preparing your tax return. If you’re like most people, you’ll be keen to find more ways to legally pay less tax and increase the amount you get back in tax returns wherever possible.

Below are some quick tips for getting more back on tax, finding more tax deductions and pay less tax overall.

Claiming Expenses without Receipts

If you’ve paid for work-related expenses and you haven’t kept receipts, you are allowed to claim for undocumented expenses up to $300. If you claim more than this amount, you may need to provide receipts to verify spending amounts.

Donations

If you frequently make donations to registered charities throughout the year, you’re allowed to claim up to $10 without providing receipts. Of course, if you have receipts for more than this amount, claim the amount you spent.

Voluntary Extra Payments into Superannuation

Check with your accountant or with the tax office first, but you may be able to benefit from paying voluntary amounts of money into your superannuation account. Be careful about the amount you pay, as new limits were set last year for the amounts you can pay into super in one year.

Pre-Paying Expenses

One way to reduce your taxable income legally could be to prepay some of your expenses for the following year. If you have an investment loan outstanding on a rental property or a margin loan over shares, you might be able to prepay some of your interest for the coming year.

Speak to a Professional

If you’re worried about finding tips to get back more on tax, pay less tax and uncover more tax deductions, you might benefit from speaking to an accountant about your available options.

A tax agent is more likely to be able to find far more tax advantages than you will on your own, and they’ll be able to help you structure your finances so you don’t end up with problems next year too.

Free Help with Your Tax Return

If your income is below $40,000 per year, you could be eligible to receive free help in finding more tax deductions from a tax office trained volunteer. You can call 13 28 61 to check whether you qualify.

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