Posted: 20 July 2018
Did you know you could be paying too much in taxes? If you aren’t claiming every deduction, your taxable income is higher than it should be.
You end up paying more in taxes than you need to. The average Australian claims $3,413 in deductions on their taxes.
Real estate agents claim as much as $8634. Keep reading to find out the tax hacks that you may be missing out on.
1. Deduct Your Tax Agent’s Fees
Claim the tax agent fees from last year’s tax preparation. The total amount you paid goes in section D10. This is the cost of managing tax affairs section.
The fees you pay for this year’s filing can go on next year’s taxes. This deduction is available every year you hire a tax agent.
2. Deduct Your Union Membership Fees
If you are a member of a union, you can claim your membership fees. Professional membership organizations, in general, can qualify for this deduction.
3. Claim Car Expenses
Driving to and from your place of employment does not count for this deduction. If you are driving your personal car for work-related activities, that does qualify.
You have two methods to choose from when determining your deduction total. Your first option is to track your gas and maintenance spending for 12 weeks.
The other option is to track your mileage and claim a predetermined amount per mile. The miles counted are the ones driven while earning your income.
4. Home Office
One of the most commonly missed deductions is home office setups. You qualify for this deduction if you perform any part of your employment at home.
If your entire employment is from home you can claim the “occupancy cost” deduction. You can be self-employed or a home-based employee and still qualify for this deduction.
Include your home office equipment, furniture, and software used. A part of your rent and utilities qualify for the deducted.
This is one of the more confusing common tax write-offs. Give your tax agent the information and let them determine deduction amount on your tax return.
5. Deduct Mobile Phone Taxes
You can claim the work-related phone calls you are making and receiving on your personal phone. You cannot claim the entire mobile phone bill.
Keep a log of the calls you make that are work-related. Do this for at least a couple of months. Then you can take your average monthly use percentage.
Tax Hacks in Review
Maximize your tax deductions by including these 5 easy tax write-offs. Start by including your fees from last year’s tax preparation.
Claim your union or membership fees. Any professional group related to your employment could qualify.
Track your expenses from your car if you are using it for work-related tasks. The same applies to your home office and cell phone.
The key to all of these is tracking your receipts and time used. You can only deduct the percentage that used for work-related activities.
It’s best to consult your tax agent about any tax hacks you plan on using. They will explain the intricacies such as the percent used determinations.
Read these 5 tips for spending your tax refund responsibly.