Taxes are an integral part of everyone’s financial life. However, tax season can be a stressful time and filing tax returns can seem like a daunting process. In order to help simplify tax season as well as help you save some money, here are six tips you should remember in order to save money on taxes.
Simplify tax season with these tips.
1. Donations to Charities
You can claim a tax deduction if you made a donation of over $2 to a charitable organisation. In order for you to qualify for the tax deduction, the charity must be registered as an organisation with deductible gift recipient (DGR) status. To confirm this status, you can look it up on abr.business.gov.au.
2. Work Related Expenses
There are costs you incur as you conduct your work. Some of these costs are tax deductible. Work related costs such as car expenses, office or home office expenses, work gear expenses, union fees, computers, and software may be tax deductible. You can also claim on mobile phone costs if the calls you make are work related. Keep in mind that for claims over $300, you must provide receipts.
You can claim on your bank fees but only in the circumstance that the fees are connected to how you generate your income as well as accessing it. Teller and ATM fees for withdrawing money from the account that holds your income is deductible. You can also claim on monthly fees charged on your savings account.
Reduce your tax burden with these tips.
4. Fees for Financial Services
Getting general financial advice is not tax deductible. However, you can claim on costs incurred through the provision of specific financial services such as a tax consultant who helps you make your returns. You can also claim on property management fees and expenses.
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5. The Cost of Income Protection
If you have income protection insurance, you are eligible to claim a tax deduction. This is the only form of personal insurance that is claimable. A deduction is calculated depending on the amount you pay on your premiums.
6. Property Related Costs
As a property investor, there are some expenses you can claim in order to get a tax deduction. Some of these costs include water supply charges, insurance, cleaning, and maintenance. You can find a more detailed list here.