When you file the tax return or complete it, you are eligible for the deductions to claim some expenses. There are so many expenses on which you can get the deductions, and mainly these expenses include work expenses. Most of the cost is incurred while earning the employment income. Here in this article, we will learn about all those things and learn about the deductions’ management.
If you want to know about that, then you can check out this article and learn about all the deductions that can be claimed.
If you want to claim the deductions for the expenses related to the work, then you need to keep these things in mind-
— The money that you have spent must be by yourself, and it should not be reimbursed.
— The expenses which you are going to claim should be related to the earning of your income.
— You should have the proof to prove that; you need to keep the receipt of that with yourself.
You need to know that the expenses you have incurred are for both work and personal purposes, then the deduction you can claim will be for the work-related part. And the work, an expense for which the employer has reimburses you, will not be deductible. If you think that your employer may reimburse you for any expense you have done, you should ask them once.
The expenses on which you can claim the deductions related to your work are mentioned below-
— Traveling and vehicle expense
— Clothing, dry-cleaning, and laundry expenses
— Expenses that occur while working from home
— Self-education expenses
— Equipment, tools, and other assets
— Other work-related deductions
If you are an employee, then you can claim all these work-related expenses in the income year in which you incur them. It means even if you have started your job in June, then you can claim the deduction that you incur in June.
But you should keep in mind that if you hire any other employee to work under you, you cannot claim those expenses.
There are some other deductions also that you can claim easily other than the work-related expense. Some of those deductions are mentioned in the following points-
— A cost that you incur while managing the tax affairs
— ATO interest- reporting and calculating
— Donations and Gifts
— Interest that ATO charges
— Dividend, interest, and other investment income deduction
— Insurance of income protection
— Personal Super Contribution
Managing your deductions
If you want to claim the deductions, then you need to keep a record of them. You can use different tools such as my Deductions in the ATP application, which will help you keep records of ever general and work-related expenses. It is the best and easy way to capture all the information and help in completing the tax return easily and quickly.
If you use the myDeductions tool, then you can –
— Upload the records
— Pre-fill the Tax return
If you are taking help from any tax agent who is registered, you can even send them a copy of records via email, and from their software, they can get access to your uploaded records.
You can keep the record of the expenses on the myDeductions record-keeping tool of-
— All work-related expenses
— Interest and dividend deductions
— Donations and gift
— Cost of managing the tax affairs
— Sole trader expenses and business income
— Other deductions