Tax times can be extremely stressful. Amidst this stress, making mistakes on tax returns is not unheard of. However, the ATO does not accept this, and every mistake you make will be met with a penalty.
Some mistakes might lead you to an audit, which is the last thing anybody wants. Thus, to help you, we have highlighted those mistakes you must avoid at all costs.
1. Not Claiming Everything You Are Entitled To
Deductions are nothing new. You can easily claim the deductions with the right paperwork to prove your work-related expenses. Still, the percentage of people not claiming everything they can is surprisingly high.
Deductions can be claimed on travel costs for work, tools and equipment. Moreover, there are a plethora of deductions that are for specific professions solely. You can consult a tax accountant to know better about these deductions and how to claim them.
2. You Might Be Embellishing Deductions
While so many people do not claim everything, the number of ones who exaggerate the deductions is not less. People inflate deductions hoping for bigger refunds, which is not only wrong but also illegal.
Doing this will get you a penalty for an incorrect tax return; in some cases, the ATO will audit you. So only claim the expenses you had to spend to earn your income, nothing else.
There will be some instances when you might be unsure, so it is better to go to a professional, like Clear Tax Accountants, to be extra sure.
3. Errors In Details
ATO holds up many tax returns when basic mistakes are detected in the taxpayer’s information. The most common error is misspelling your details. A little slip of the keyboard will result in the ATO not being able to match up your details.
Similarly, if you have changed your address of residence or your name, you must inform the ATO. Otherwise, the details won’t match with TFN.
Did you know that ATO has not been sending out refund checks? Thus, you must include your bank account details to receive the refund.
4. Blindly Trusting the Pre-Filled Data
Since manually filling in the data is too tiring for most people, they pre-fill their income information from the ATO’s system. If you also do this, it is time for you to be alert. Just because the data is from the ATO does not guarantee accuracy.
So, you need to be extra careful and check it yourself. If any income is absent in the ATO’s system, and you do not declare it, you will be subjected to ATO penalties for incorrect tax returns.
5. Not Getting Help When Needed
Taxes are very complicated yet must not be ignored by anybody. However, if you doubt anything, you should get help rather than make a mistake.
Almost 3/4th of Australia’s population gets assistance from tax accountants to make things simpler for themselves, and so can you. A good tax accountant will inform you about the errors and help you claim every deduction you may be entitled to. Moreover, the fee of hiring one is also tax deductible.
So contact Clear Tax Accountants now and enjoy all these benefits.
Disclaimer: The information on this website is for general purposes only and should not be relied upon for making legal or other decisions. The advice provided in this article is general in nature and is not subject to the personal financial situation and needs of any individual. Clear Tax tries to keep the information accurate and up-to-date; however, you should bear in mind with changing circumstances, the accuracy and reliability of the information will not necessarily remain the same. The information is by no means a substitute for financial advice.