Whether you’re a migrant or a business owner, the 2022 tax session will begin soon, and you must lodge your income tax return. Preparing and filing tax returns might be easy for some people. But at times, you might need the help of a professional Tax advisor Perth to help you with the entire procedure. They are connoisseurs in taking care of all income-related work, and they can help you lodge your income tax return properly.
Preparing for Tax Return in Australia: Tips to Follow!
Are you preparing for the income tax return for the first time? But do not know where to begin? Here are some useful tips which will help you prepare for your tax returns.
- Place all the Documents at One Place
When you’re pretty organized, the entire tax return process will not be that stressful and will help you maximize all your deductions. If you do not have correct receipts and records, you might not make the most of the expenses. You must put all your documents in one place, which will help you avoid the back and forth with the account. The documents that you need to collect are:
- List of expenses, including donations, cost of managing the tax affairs, work-related expenses, and self-education expenses.
- Private health insurance information.
- Copy of the previous year’s tax return.
- Records of purchases and sales of any property, shares or business.
- Spouse details [if is applicable].
- Children’s information, which includes DOB or Date of Birth.
- List all the incomes, including rental income, foreign income, income statements, dividends, and interest.
You can easily download the income statement details, private health insurance information, and Centrelink payments from ATO or the Australian Tax Office.
- List Down the Work-Related Expenses
Whether you’re a copywriter, chef, business owner, or carpenter, all professions have their own list of tax deductions. From union fees to mobile phone bills to uniforms to vehicle expenses, you will get the chance of claiming work-related expenses.
Thinks about something that you have purchased and related to your job, or it helps you get a job done properly. This can be equipment or a subscription to the industry publication. When the expenses are related to your job directly and the employer did not reimburse you, you can claim it.
- Decide on How Exactly You Will Lodge the Tax Return
When you have gathered all the information, you now have to decide how you wish to lodge the income tax return. When you wish to get it done online, you can do so through myTax effectively. Otherwise, you can take the help of a professional tax return accountant to assist throughout the entire process.
They are experts in handling pretty complex tax returns. Taking the help of these experts will make your tax return preparation a lot easier and faster. You just need to provide them with all your documents, and they will prepare the returns, lodge the tax return, and maximize the refund.
- Taking the Help of Professionals is Compulsory
Studies have provided evidence that about 74% of Australians take the help of a reputed and professional tax agent for their tax returns. What might look like irrelevant information to you will have a massive impact on the tax return. So, taking experts’ advice can surely help.
You might think that preparing your tax returns by yourself can help you save money, but it can cost you an unclaimed tax deduction. With a wide range of prices and packages available for all types of taxpayers, expert advice is affordable and convenient.
- Use Technology
Technology keeps evolving and changing how people work. This is also the same when it comes to staying organized personally. Here are several ways technology can help you with the tax return preparation work.
- Mobile Apps: To prepare for Individual Tax Return, people can now use apps on their smartphones to keep themselves organized. One of the most popular applications is the deductions app by the Australian Taxation Office or ATO.
- Accounting Software: Businessowners can utilize accounting software to keep all their books organized. They can use the software Xero which comes with numerous add-ons to offer a seamless and smooth experience. This software is cloud-based, and you can log in from anywhere and at any time.
- Use Dropbox or Google Drive: Google Drive and Dropbox are ideal for storing receipts or images. You can create folders in them and update them on the go. Storing all the important receipts, scans or images in these apps will allow your tax practitioner to access them as well. Don’t go for the small format when you take pictures of the invoices and receipts. The image should be clear so that the tax professional can see what’s written on it.
Read About – How To Do Your Account Reconciliation
Build Good Relations with the Tax Practitioner
When you keep utilizing the services of a family doctor, he/she will learn about your background and offer you much better service. This is also the same for the tax experts. When you build a strong relationship with them, the tax professional will become more associated with your problem.
This will enable them to offer you tailored services. The tax professional can prepare your Individual Tax Return Australia and make sure that there is no room for issues or problems. They like to see their clients return in subsequent years.
Since they will already have most of their client’s information with them, it will be easier for them to streamline service delivery to the clients.
Whether you’re a business owner, a chef, a carpenter or a mechanic, you must lodge your tax return within the given time. But before you can lodge it, you first have to prepare the tax return.
To do so, you can either get it done on your own or take the help of a tax professional. Preparing your tax return properly can help you maximize your deductions, and the entire process will also be less stressful for you.