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Tax season is nearly upon us, and if you're like most people, you probably have a lot of questions. Do I need to file a return? How do I know if I'm eligible for a refund? And, perhaps most importantly, how can I make sure I'm ready when tax season rolls around?
Here are five tips to help you prepare for tax season:
1. Know the deadlines. The first step in preparing for tax season is understanding the deadlines. In Australia, the deadline for individual taxpayers is October 31st. If you're self-employed, however, you have until June 15th to file your return. This year, the ATO has also introduced a new rule whereby returns must be lodged electronically if you've earned more than $20,000 over the financial year.
2. Get organized. The second step is getting organized. Pull together all the relevant documents—including payslips, receipts, and bank statements—so that you have everything in one place come tax time. If you're self-employed, this also includes keeping track of any expenses you've incurred throughout the year.
3. Know what deductions you're eligible for. Another important tip is knowing what deductions you're eligible for. This year, the ATO has announced a number of changes to deductions, so it's worth doing some research to see what deductions apply to your situation. For example, did you know that from July 1st 2018, taxpayers will no longer be able to claim deductions for travel expenses related to visiting their investment properties?
4. Understand your rights and obligations. It's also important to understand your rights and obligations as a taxpayer in Australia. This includes knowing what information the ATO can and cannot access, as well as your rights if you get audited by the ATO.
5. Use a registered tax agent or accountant. Finally, one of the best ways to prepare for tax season is by using a registered tax agent or accountant. A professional can help ensure that your return is lodged on time and that you maximise your refund (or minimise your bill). They can also help with any queries or problems you might have along the way.
Tax season doesn't have to be stressful—if you're prepared! By following these five simple tips, you can make sure that come tax time, you're ready to go.