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McKinley Plowman’s Top Tax Time Tips
Tax time is upon us! While this isn’t necessarily a time of year most people get excited about, something that motivates most people is a potential tax refund. Even in situations where you might not be eligible for a refund, legally reducing your taxable income to minimise your tax liability is always a bonus. Now that we’re in tax return season, let’s have a look at some of McKinley Plowman’s Top Tax Time Tips.
Collect up all your receipts for the year that relate to work
This one’s simple. For any deductions you wish to make, make sure you’ve got proof of purchase handy for it. Get together all receipts for purchases made that relate to earning income over the financial year, even small purchases. They all add up and can potentially knock a decent chunk out of your taxable income. It is important to remember, however, that even if you have receipts for purchases made over the year, they must be in relation to earning income.
Ensure your records for the year are complete and up-to-date
Records like receipt banks and logbooks are very important at tax time, particularly if you’re planning on claiming travel expenses. There are many apps available for smartphones and other devices (including the McKinley Plowman App) that are great for keeping track of these sort of things over the year. If you’ve not been able to take advantage of these in the past financial year, it’s wise to do so in the coming year. If you’ve got physical copies, double-check that they are complete and current before you start the tax return process so it goes as smoothly as possible.
Track your charitable donations
Donations to charity are not only a generous and effective way to spend your income, they are also tax deductible (must be $2 or more). You can deduct the value of the donation in your tax return, providing the donation was to a “deductible gift recipient” (DGR), and meets the Australian Taxation Office’s (ATO) definition of gift – ‘a voluntary transfer of money or property where you receive no material benefit or advantage’.
Get professional advice
Perhaps the most diligent way to get the best result from your tax return is to get in touch with tax professionals, such as McKinley Plowman. Keeping on top of all the ins and outs of tax returns, deductions, legislation and other relevant factors can be very time-consuming for most people, so it’s smart to get help from those with experience.
To find out more about getting your tax return done with McKinley Plowman, or to book in, don’t hesitate to call us on 9301 2200 or visit www.mckinleyplowman.com.au.
REFERENCES
https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/Gifts-and-donations/
written by:
McKinley Plowman
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