Albert Einstein (on filing tax returns) once said:
“This is too difficult for a mathematician. It takes a philosopher.”
It doesn’t matter whether you are a philosopher or a mathematician, taxes are taxes and it’s your job to pay what’s due and not one cent more.
Here are 8 tips on how to get the most out of your tax return this year!
- Remember to include all donations to charity as deductions, these are sometimes overlooked.
- Consider whether pre-paying some of your expenses before 30 June will be of benefit to you.
- The same goes for income, is there anything you should delay or bring forward?
- Under certain conditions after-tax contributions to superannuation attract healthy government contributions. Check to see if you are eligible.
- Are there any minor repairs and maintenance you need to do on your investment property before 30 June?
- Be sure to keep your tax records readily available in the event of an audit. Scanned records are a good substitute for hard copy.
- Records need to be kept for 5 years since your last assessment notice so keep them in a safe place. Some records should be held for longer – check with your accountant to see if this applies to you.
- Create a master tax checklist to ensure that you include all income and expense items every year.
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Remember if you are in a position where you haven’t lodged your returns for a long time, get out of the rut now. At least lodge this year’s and then work backwards and get them in as soon as you can. Every year added to your unlodged tax pile is another year of worry and anguish. Give the tax department a call and work out a plan of attack to get this job done and maybe get a healthy refund in the process! If you approach them, the likelihood of fines and penalties reduces dramatically.
All the best for Tax Time and may your refund be bountiful!