It’s coming around all over again – Tax time! As the financial year comes to a close Australians are going to start hunting for expenses their can claim to reduce their taxable income. Are you aware of what you can legally claim on your tax return? Read on to discover something surprising. The money you get back could then be used to help with debts!
Refinancing your home can mean you are eligible to claim some of the costs associated with the loan on your tax return. This can be done by itemising the additional charges you pay on it. They can be deducted in monthly increments over the life of your loan, however if you are thinking of refinancing before the end of June you should compare rates to get the cheapest one possible and save yourself thousands.
As part of the Education Tax Reform, parents, carers, legal guardians, and students can get money back on tax for education expenses. These must be incurred on behalf of an eligible child or independent student claiming themselves. Some of the items which are deductible include computers, laptops, printers, USB sticks, internet connections, software and textbooks. If you keep your receipts you can claim!
If you have income protection or sickness/accident insurance premiums, then these are also claimable on tax. Keep your annual statements to prove the amounts you claim.
Your work uniform is claimable on tax, if you have a logo on it you can claim all costs associated with it. This included dry cleaning, laundry, repairing, and alterations.
If you took a work-related course then this is also tax deductable. For example first aid, shorthand, public speaking, OH&S, computer skills, management courses which are not run by TAFE or universities. Also the costs of travelling to and from, meals and any accommodation expenses are able to be claimed.
If you are a land lord you can claim the interest on the loan used to purchase the property or land. If you used the money for anything which depreciates in value such as air-conditioning or repairs and renovations you can also claim on this.
Gifts and Donations
Most of us know that anything over $2 for charity is tax deductable. If you donate it must not be for any benefit such as chocolate or prize draws as this is not claimable. You can however drop off your clothes at the Salvation Army and if you obtain a receipt you can legitimately claim this on tax.
Investments and Tax Expenses
If you spend any money preparing for your tax claim this is also deductable. Not just the tax filing itself, but if you call the tax man or drive to see him you can claim this. Likewise if you have an investment you can claim the calls and trips you take to see the advisor.
Vehicle and Licenses
It may pay to keep a log book for your work vehicle. You can claim mileage on it and if you hold a special license such as for trucks for work then you can claim this also.
If you are every in doubt about what you can and cannot claim at tax time, it is always best to hold onto the receipts and an accountant can advise you if you are entitled. But for now keep these things in mind and know you can get a little more return for your dollar. The more you get back the more you can use to knock off your personal debt.
Source: Yahoo Finance