With tax season around the corner, it’s essential to be aware of standard deductions, which may reduce your taxable income to help increase your chances of getting a refund.
Many taxpayers miss out on these opportunities because they may not know of what they might gain from them.
With our blog post, you can now be empowered with knowledge about the commonly overlooked tax deductions, giving you more control over your finances.
Overlooked tax deductions you can claim during tax season.
Here are some of the commonly overlooked tax deductions that you can claim during tax seasons as follows;
1. Work-related expenses
Currently, most people work from home, and it has become a norm to work remotely from places of convenience. But with it comes expenses such as sorting out the internet and electricity, among other necessities.
Claiming these home-office expenses can provide a significant relief, lightening the financial burden of remote work and potentially leading to a refund.
You can also claim office tools that your job specifically requires you to have, as the ATO allows depreciation deduction on expensive items over time.
If you purchased equipment yourself, such as a laptop, protective gear, or trading tools, you can claim a refund from your place of work.
Note: Use the ATO’s revised fixed-rate method to calculate your work-from-home expenses for more accurate claims.
2. Education and training costs
Sometimes, jobs require you to partake in specific courses to improve your skills or gain more qualifications for your roles.
You may claim expenses such as tuition fees, books, and travel costs, among others encountered.
3. Investment-related deductions
Owning rental properties means you’ll be subject to taxes. However, property management fees, maintenance, repairs, furniture depreciation, and fittings can be claimed.
4. Health and personal insurance
Those who have income protection insurance purchased outside of their superannuation fund are at an advantage of getting tax deductibles. Even though most taxpayers don’t realize it, it is always important to follow up.
5. Donations and charitable contributions
The art of giving back to society is a culture that any Australian can’t ignore, but many aren’t aware that they can claim these deductions.
How true can this be? Well, very true. You can easily claim your deductions with a receipt showing proof that you donated to a deductible gift recipient (DGR).
6. Motor vehicle expenses
You can claim work-related travel costs in workplaces such as fuel, maintenance, and repair costs, amongst other work tasks expense given by the company.
For guidance and accuracy, consider using the ATO’s cent per km method to calculate these expenses.
7. Union and membership fees
Keeping records of all your union and membership fees will save you money by allowing you to claim tax deductibles.
