There are some very common mistakes people make when doing their taxes. These kinds of mistakes may lead to trouble and even to very unpleasant ATO payments and debts.
If you want to avoid these mistakes, you can simply contact the professionals at Syndeo group, and get the ultimate financial assistance in the region.
Every year, the ATO work harder and harder to find mistakes and problems with tax returns. In order to avoid this, keep reading this article, as we will uncover some mistakes to avoid when doing your tax refund.
- Don’t guess or estimate your income and tax paid
When you are doing your tax return, ensure that you’re using accurate figures when you are entering your income and the tax amount paid. The ATO already have these records, and they will compare to the one you’ve entered. They might not have some records, like income for solo work or consulting, but they have a record of your accounts. All your data must be entered accurately, as the smallest mistake might attract the ATO’s attention.
You can always get a tax agent to handle this for you, and download your accurate ATO income data directly from ATO.
- Don’t guess or estimate your tax deductions
As we previously mentioned, the ATO keep track of everything, except your tax deductions. You are the only one who can do that.
You shouldn’t be creative with your tax deductions, as the ATO analyses in detail every item or purchase you claim back. They will compare all of your deductions to other people in your line of work, your age group, your industry and your location. Be sure to have all the receipts of the items you want to claim.
- Don’t forget to declare overseas income
Many people work overseas, and they often forget to declare their income, and pay their Australian taxes. That is actually a huge mistake. If you are an Australian resident you must still lodge an annual tax refund, even if you work overseas. You must declare all of your income, even if you are not working in Australia at current.
In case you don’t know, foreign income includes any employment, business or investment income, as well as any foreign pensions or capital gains on overseas assets.
If you work overseas, and you are not sure about tax rules back home, simply contact the Syndeo group, and they will answer all your questions and explain everything you need to know regarding this issue.
- Keep all of your receipts for work-related purchases
One of the biggest mistakes people make is buying work related items and not keeping the receipts, as without them, you can only claim up to $300 work related expenses.
Also, if you get a bigger tax return than you should, the ATO will ask for the money back, plus interest charges, and even penalties, so be careful!
If you have any questions regarding a tax deduction you want to claim, contact Syndeo group, and they will explain everything you need to know in simple terms.
