Reducing your taxes is one of the effective methods of earning more money. Proper planning can greatly help you in minimizing taxes and maximizing your benefits. The following are the main methods that have been compiled by top accountants.
Keeping god tax records
Having all the receipts can help you in claiming your tax deductions. Keeping track of your receipts is the best method of remembering what you need to claim. However, you will still find many people who have claimed to claim their deductions which they are entitled to. Getting organized is one of the easiest ways. You can do this by putting aside some of your time to update your logbooks, putting the receipts in a folder, and download your statements. Alternatively, these documents can be photographed using an Etax app. This will end up saving you a lot of anguish and time at the end of every financial year.
Someone can claim his or her tax returns from the amount of money donated to charitable organizations. The total amount of money donated by the year should be entered in your tax returns. It is therefore important to keep all the receipts after donation. This money is subtracted from the taxable income.
Claiming everything that is claimable
You can claim a deduction in the cost of goods purchased partly for either personal use or work. Any money spent that is related to your income should be claimed. Always keep all the receipts and ask questions when filing your returns.
Consulting a tax professional
Apart from saving your time, this professional will help you in improving your net payable or tax refund. This is the main reason why you find most of the tax agents using the services of professionals such as Etax.com.au. This company has experienced accountants when it comes to taxation matters. Additionally, these professionals are we updated on the latest legislation. Hiring them will help you in spotting and correcting some of the little mistakes that would slow down your refunds. If unchecked, these mistakes can lead to ATO audit or reassessment.
Medicare levy surcharge
Any person who does not have a private hospital insurance is expected to pay an additional medical levy surcharge or at 1 % on top of his or her compulsory Medicare levy that is paid by almost all the taxpayers. Having a private medical cover plan can help you in boosting your gross income by 1%. The private health cover paid for should be suitable for your circumstances.