Are you looking to Maximize your Tax Refund? But How? - Accounts NextGen

Are you looking to Maximize your Tax Refund? But How?

Are you looking to Maximize your Tax Refund? But How?

Everything, you must be aware of about the ATO’s flat rate if you’re planning to use it for your tax return.

The end of the ‘financial year’ is on edge. Lots of challenging and unforgettable curves have already bumped into people’s lives, both financially and physically, and anticipating more tax refunds is a usual thing.

Shortcuts can provide you relief to some extent, but your entire efforts may turn out a big failure because already, a team of experts has been assigned with the work to collect the entire expenses, bills, and receipts on your name. So they don’t miss out even a little chunk of dollars to be mentioned in your tax return.

To battle with Coronavirus, the lockdown has forced people to turn their lounge room into an office area. Therefore, after mapping out the entire situation, the Australian tax office (ATO) has also introduced higher Flat rates.

Accordingly, ATO uses a simplified process that brings easiness for people to claim rates. For instance- people who are following “work from home” ATO come across the decision to lift the standard hourly rates from 52 cents to 80 cents per working hours.

Before opting for the flat rate and rather than working out on calculating expenses, with an alerting message, the tax experts outline various reasons why figuring out things and taking steps ‘carefully’ are essential.

Spokesperson Andrew Gardiner, from National Tax and Accountants’ Association, mentioned it the most important thing. Although, the concession (flat-rate) includes cooling, electricity bill, off heating, expenses incurred on office expenses like printer, computer, paper, and cartridge.

Certainly, it’s not a big claim; hence people must be sensible and careful as they’re only getting 80 cents per hour for standard 40 hours a week, which means only $32.

Choosing the flat rates will imply that the taxpayer is washing hands from claiming the amount on purchasing the new computer, chair, and desk while they were working from home.

Remember, you can’t think about opting ATO’s 80 cents per hour claim if you are choosing this option. Lately, you also have to forgo your right to the claim of office expenses. Like for electricity, internet, or telephone expenses, you can’t expect to claim separately. The right to claim for deprecation on a computer printer, paper, and cartridge will also be forfeited.

The Ways To Maximize Your Tax Refund

Travel

As mentioned by (Platinum Accounting & Platinum Professional Training’s CPA and managing director), Coco Hou, travel can be necessary for the following reasons:-

  • You may have to go out of your home to purchase some essential items; hence, you incur costs.
  • You incur a cost as you have to put petrol in a car while traveling.

The things you may leave unnoticed

Expenses that you incur while subscription for services or car insurance are some of the most notable costs you incur while working from your home, and that you must include.

Slip up on ‘what to claim?’

Global pandemic with giving rise to lots of problems has also introduced some confusing situations related to claim. What to claim, and what can’t be claimed? However, according to Ms. Hou, the answer is clear: every item that comes out of your employment work is un-claimable since they aren’t part of your regular working environment. Like toilet paper or food.

Final statement ‘what do I need?’

The ATO (Australian Tax Office) always asks people for a number of hours and a list of expenses they have incurred in the last four weeks while working from home- said Mr. Gardiner. Hence, you should always be ready with the documents that hold the record of your expenses.

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