LOVE IT or loathe it – tax time has arrived.
For many Leeton shire residents, it can be a period of stress, but there are simple ways to get through unscathed.
The Australian Taxation Office (ATO) has profiled the five most common mistakes which occur during tax time in the hopes residents will be able to avoid them.
Here’s what the ATO believes are the top five mistakes made by taxpayers:
1 Leaving out income
This includes forgetting a temp job or money earned from the sharing economy.
2 Claiming deductions for personal expenses
Most cannot claim home to work travel, normal clothes or personal phone calls.
3 Forgetting to keep receipts or records of their expenses
This is essential and should be done year-round.
4 Claiming for something they haven’t paid for
Some taxpayers claim for something they never paid for – often because they think everyone is entitled to a “standard deduction”.
5 Claiming personal expenses for rental properties
This includes either claiming deductions for times when they are using their property themselves or are claiming interest on loans used to buy personal assets like a car or boat.
ATO assistant commissioner Kath Anderson said many of the mistakes are avoidable and there are a few things taxpayers can do to make sure their tax time experience is stress-free.
“Know what you can legitimately claim,” she said.
“There are three golden rules for work-related expenses.
“You must have spent the money yourself and not have been reimbursed, it must be directly related to earning your income, and you must have a record to prove it.”
While you’re with us, you can now receive updates straight to your inbox every Friday at 6am from The Irrigator. To make sure you’re up to date with all news in Leeton sign up here.