Particularly when you are entitled to a refund you definitely want to get everything together quickly and easily so that you can get your tax return lodged and into your bank account as soon as you can.
By Anthony Bell
Common work related deductions that you need to include could be;
1. Motor Vehicle expenses
2. Travel expenses
3. Uniform, laundry and Dry Cleaning
4. Self education expenses
5. Deductible Gifts and Donations
6. Other work related deductions such as income protection insurance, union fees, home office expenses, phone, internet, subscriptions, stationary, accounting fees, depreciation and overtime meals
7. Personal super contributions, subject to eligibility.
8. Eligible prepayments including interest
9. Investment property income and expenses
10. Dividend income and related expenses
In order to organise your deductions, it is worthwhile to break them up into these categories so that you can easily run through them with your accountant. Just remember, even though you may have all or some of these costs, it does not necessarily mean you are entitled to a deduction for them. The cost needs to be able to assist you in earning your income; your accountant however, will be able to advise you if you are able to make the claim in your return.
There are also a number of tax offsets that you may be eligible for and don’t forget about any carried forward tax losses or Capital losses.
There are a number of Benefits out there that you may be eligible for, these include;
• Family Tax Benefit Part A & Part B:
To be eligible for family assistance, a taxpayer must pass an income test. For 2011/12, family adjusted taxable income can be $46,355 a year before the Family Tax Benefit Part A payment is reduced.
Family Tax Benefit Part B aims at assisting single income families. It is payable where the primary earner’s income or the sole parent’s income is $150,000 or less. However, the secondary earner’s income is taken into account and this person can have an income of $4,891 a year before payment is affected. Payments are reduced by 20 cents for each dollar of income earned over $4,891 (you can still get some benefit if your income is below $24,291 a year).
• Child Care Benefits:
This is also based on an income test, if family income is less than $39,785 a year, the family may be entitled to the maximum rate of Child Care Benefit depending on the type of care used, the hours it is used and whether the child goes to school.
• You may be eligible for Child Care Benefit if:
o If your child care is approved or registered child care
o your child is immunised or is exempt from the immunisation
o you pay the fees for your child
• Child Care Rebate:
Taxpayers may also be eligible for a rebate of 50% of out-of-pocket child care expenses (Child Care Rebate), up to $7,500 per child for 2011/12.
Please note that there is no income test for the rebate but you need to satisfy the conditions of Child Care Benefits (although you do not receive any benefits because of the income test).