Common Tax Mistakes That Can Cost You

Filing taxes can be stressful and overwhelming for many Aussies. Many taxpayers who have been counting on tax refunds are staggering with tax bills. Of course, it might be tempting to rush and complete tax filing as quickly as possible. But, one wrong information, it could be as simples as wrong TIN (Tax Identification Number), can negatively impact the outcome of filing tax returns, and more importantly, cost you more.

So, take the extra time and try to avoid these common tax filing mistakes as suggested by a professional Tax Lawyer in Perth. Remember, making any one of these mistakes could cost you thousands of dollars, and even worse, increase your odds of an ATO (Australian Taxation Office) audit.

Claiming for Things that you’re Not Entitled To

Of course, you are entitled to claim a deduction for any expense you have incurred in earning your income. But, doesn’t mean you can claim for every expense that you make. People confuse personal costs with work costs. Remember, always claim what you’re entitled to. If you have incurred a work-related expense, and more importantly, you have the paperwork to prove it, then go ahead.

ATO has three rules when it comes to claiming deductions, including you should have bought it by yourself, it must be related to your income, and you have the documents to prove it. If you have made a mistake while lodging and facing legal issues, it’s a good idea to get the assistance from taxation lawyer Perth.

Not Declaring the Actual Income

This is one of the most common mistakes taxpayers make, according to The Australian Tax Office. You have to mention everything from regular and temporary jobs to cash-in-hand payments. This even includes certain things that you don’t recognise as income, such as money from capital gains earned from Bitcoin, etc.

Not Having the Receipts

Well, it happens. You aren’t alone in this. We never realise the importance of keeping the receipt until the need arises. Receipts are discarded, left in the shopping bags, or even thrown out. It’s best possible to have the receipts/ records for the expense so that you can claim the tax returns with proof.

Filing Too Early

The sooner you lodge, the sooner you can get your returns. Unfortunately, this never happens. It takes time to gather all the information to be sent to the ATO. If you are filing it early, there is a high chance that you might have missed some of the important information. Take your time and get the facts right before lodging.

Ignoring the Basics

Have you recently moved to a new address? Did you got married and changed your last name? You wouldn’t want to let your tax return be held up due to basic mistakes. So, get the basics right.

Made a mistake in your tax return? Is ATO ignoring your attempts to correct your mistakes? Probably you’ll need the assistance of a professional tax lawyer from the Tax law firm in Perth.

The author is a professional tax lawyer working in a well-established boutique Tax law firm in Perth. Along with the team of professionals, he is committed to finding strategic solutions to complex legal tax problems. Visit https://www.munrodoig.com.au/ for more details.

Article source: https://article-realm.com/article/Finance/22135-Common-Tax-Mistakes-That-Can-Cost-You.html