5 tips to take stress out of tax time

The days are counting down to tax crunch time. If you weren’t previously aware of the June 30 deadline, the multitude of End of Financial Year sales will have clued you in!

For many of us tax time can be a confusing one, as people are unsure of how the system works and what can be claimed. To make it even harder, each year the Australian Taxation Office tends to make changes so you need to be clued in to make sure your claims are legitimate.

This is why going to an accountant can be a valuable investment: they don’t just help you file your return, they are there to help you understand your obligations and let you know of any deductions you are eligible to claim.

This year there will be no more E-Tax, but instead all Australians can claim through myTax if you want to lodge your own return.

Here are some key tips to take the stress out of tax time.

1. Record keeping over the year is essential. Ideally good records and filing makes for an easier return, but at the very least a shoebox with all your receipts and documents will get you on the right foot.
2. Keep track of your receipts using modern technology. Receipts fade, tear and can be easily lost. Take pictures of them on your phone and take advantage of mobile apps to file them electronically.
3. Make a tax summary and checklist. This will help you each financial year as you can compare your summary to last year’s claim, thereby making the process less painful. Plus, many accountants charge on an hourly rate so being able to streamline the process with a summary will save you time and money.          
4. Be aware of changes from the ATO. For example, this year the ATO has changed how you can claim car receipts and they will now only accept the logbook method or cents per kilometre. You need to be aware of these changes so you don’t miss out on the opportunity to claim deductions.
5. Talk to your accountant about what deductions you can claim as an employee. They will be able to tell you what records you need to keep to lodge items you may not have been aware you could claim. They will also be able to advise you as to what you cannot claim and prevent you getting a call from the ATO.

Seeing a professional can save you time, money and generally give you peace of mind that your finances are being looked after properly. If you’re looking for an accountant, find your local professional at Look Local WA.