Useful Tips to Maximize Your Tax Refunds
Do you prepare your tax returns yourself? If you don’t consult a professional because you feel not have much to put on the records, you might be missing out on money-making opportunities. Taxation specialists know various tips and tricks that can help you maximize your tax returns while reducing liabilities, such as a few discussed here.
- Stay Organized and Claim all Entitlements: Start with collecting all the documents like payslips, receipts, and bank statements. After calculating how much tax you owe, you should look at all the deductions you can claim. Usual entitlements include deductions for expenses like travel, tools, equipment, and even self-education.
- Donate to Charities: Good deeds always pay off. And if you are doing good through a charitable donation, you will get the returns in the form of tax refunds. Check the maximum amount you can claim as a deduction in the form of charitable donation and do what you can do up to that maximum.
- Work-related Expenses: Are you using your personal phone for business calls? You can claim a deduction. Do you travel by your car to meet clients or visit sites during work hours? You can claim a deduction. Similarly, there’s a whole list of what you can and can’t claim under work-related expenses. Check the list and put the maximum you can prove with proper receipts and proof.
- Time Your Deductions Right: Often each category of expense you can claim has a cap on the amount. So, you should know how much you can claim in a financial year and try not to overspend the limits for maximum savings.
You can always talk to a professional Toongabbie accountant for the best advice on how you can minimize your tax liabilities based on your income and expenses.