The primary way to boost your tax refund is by claiming deductions. Let’s look at some that you are likely eligible for.
1. Claim Tax Deductions For Working At Home
If you work from home on the odd occasion, part-time or full-time, you can deduct certain costs. This even includes the cost of your home electricity bill and internet.
Working from home tax deductions can involve the following:
- Electricity Bills. You can claim the part of your residential electricity bills according to how frequently you work from home.
- Internet Bill. You can also claim a portion of your monthly internet bill, in line with how regularly you use it for work.
- Phone Bill. Mobile and landline phone calls related to work.
- Office Furniture. Repair and purchase expenses for office furniture and fittings needed to do your job.
- Cleaning Expenses. The costs incurred from cleaning workspace at home.
2. Car And Travel Expenses
Travel and car costs appear to be an expense most individuals are comfortable with on their tax returns. However, providing an assumptive amount or illegitimate claim can land you in trouble. Consequently, it is critical to ensure that what you claim is recognized as a travel expense per ATO’s guidelines. Accurately claiming these costs can save you a lot of hassle. Therefore, it is worth getting it right.
Claimable travel and vehicle expenses include:
- Costs of running your cars such as oil, fuel, and servicing
- Vehicle’s insurance cost
- Registration expense of your vehicle
- Vehicle’s depreciation
Expenses that are not claimable:
- Parking tickets and other speeding forfeits
- The initial purchase cost of your vehicle
3. Employ A Tax Agent
Here is how tax agents can help you.
- Claim Accurately. When you fail to file your deductions correctly, you could be fine from the ATO. Using the tax agent can give you peace of mind that you have lodge your tax precisely as they make sure you have claimed everything by the books.
- Claim More Deductions. Tax agents have a thorough understanding of the tax system, so they will be able to help you make all eligible tax claims.
- Claim The Tax Agent Fee As A Deduction. You might be surprised to know that the expense of hiring the tax agent is also tax-deductible.
- Help With Calculations & Offer Tax Advice. Claiming all small and big expenses can be complicated and time-consuming. Tax agents are specialists at this. Hence it can save you a lot of stress and time. They can also offer you some tips for organizing your finances in general.
4. Include Charity Contributions
You must keep in check a few things before claiming a donation or a gift. If you often drop spare change at the convenience store counter, that may not be eligible for a claim. However, if you make regular charitable contributions every month, you may get part of it as your tax claim.
