Tax time is fast approaching again so we thought we’d share with you some tips and things to consider when compiling your information for tax time.
When completing your tax return some expenses are able to be claimed as deductions outright. Most are the expenses you incur whilst earning your employment income in the relevant income year. Employees including part time & casuals can claim work related expenses as deductions.
Work related expenses:
- In order to claim deductions for work expenses you must not have been already reimbursed for the money you have spent by your employer.
- You must always have a record or receipt to substantiate your claim.
- The expenses must be directly related to the earning of your income.
- Should an expense be for work and private purposes, then only the portion directly relating to the work related part can be claimed.
Possible deductions may include:
- Vehicle and travel expenses
- Working from home expenses
- Clothing, laundry and dry cleaning expenses
- Tools, equipment & other assets
- Rental property expenses
- Other work related expenses – these may include:
- ATO interest
- Cost of managing tax affairs
- Personal super contributions
- Books/online subscriptions/digital information costs incurred as part of earning your employment income
- Bad debts
- Income protection insurance
- Protective items/equipment
- Sun protection
- Hand sanitiser
- Laundry expenses
- Union fees/subscriptions
- Working with children checks
Please refer to the ATOs occupation and industry specific guides that will give you more information on claimable work-related expenses relevant to the industry you work in.
The ATO also has a very handy tool in the ATO app – myDeduction which makes the safe keeping of expense records a much easier exercise including storing photos of your receipts and invoices. It’s an easy way to record and capture information on the go and makes completing your tax return a simpler process at tax time.
Payment summaries (Group Certificates) are no longer issued from your employer, it will be sent directly to your MyGov account. You do not need to produce this in order to have your tax return prepared.
Pinnacle Tax & Accounting should be able to access the following directly from the Tax Office: payment summary, bank interest, health fund details and dividends.
With any dividends please make a list of dividends received as the information available from the Tax Office is not always up to date.
For your convenience please find a checklist which we hope will assist you in get tax time ready.
☐ Lump Sum and Termination Payment Summary
☐ Other Employment Related Income
☐ Directors Fees
INVESTMENT INCOME STATEMENTS:
□ Bank Statements – showing interest received
□ Dividend Statements
□ Trust Distribution Statements
□ Capital Gains Tax Statements
□ Managed Funds Statements
□ Foreign Source Income and details of any Foreign Tax Credits
□ Government Pensions and Allowances
□ Other Pensions and Allowances
□ Details of any Capital Assets Sold
REBATES AND OFFSETS:
□ Private Health Insurance – you must have your annual statement from your private health fund in order for us to complete your return.
□ Property / Agent Rental Statements
□ Advertising Fees
□ Body Corporate Fees
□ Rates & Taxes
□ Insurance Premiums Paid
□ Interest Paid
□ Inspection Fees
□ Repairs and Maintenance
□ Land Tax Paid
□ Improvements and Renovations Depreciation Schedules
☐ Motor Vehicle Expenses – details of car make/model ; km travelled and/or details of expenses incurred
☐ Home Office Expenses – Working from home (hours per week & number of weeks)
☐ Gifts or Donations
☐ Tax Agent Fees
☐ Self-Education Fees
☐ Subscriptions and Journals
☐ Work Related Clothing Expenses
☐ Tools of Trade
☐ Income Protection Insurance
☐ Travelling Expenses
Pinnacle Tax & Accounting are your specialists in individual and business taxation. Servicing Camden, Narellan, Picton, Wollondilly, Macarthur, Smeaton Grange, Oran Park, Gregory Hills areas. We welcome the opportunity to chat with you further on your businesses accounting and taxation requirements.
This blog is merely general and non-specific information on the subject matter and is not and should not be considered or relied on as advice. Pinnacle Tax & Accounting is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.