5 Ways To Maximise Your Tax Return
Do you get the total amount of the tax refund you are due every time you file your taxes? Are you interested in getting a bigger tax refund but need help figuring out where to start, or are you worried about getting in trouble with the ATO? Millions of people living in Australia who are missing out on legitimate tax breaks. As a direct consequence, individuals still need to receive the tax refunds to which they are entitled.
Due to the complexity of Australia’s tax system, various limitations are placed on the types of deductions and exemptions that can be claimed. Deductions on taxes might be complicated, but there are methods to get help and ensure they are done correctly.
1. Use your tax credits
There are times when you should still try to get tax credits, even if you don’t list your expenses on your tax return. The amount of tax you owe can go down by the same amount you claim as a tax credit. Take the case of owing $3,000 in taxes. If you then claim a $1,000 tax credit, you will only owe $2,000 in taxes.
Remember that you might only be able to get back a few of your tax credits. So, if your tax credit brings your tax bill below zero, you can only get a tax refund if the credits are refundable. However, you would not have to pay tax debt if this happened. You should check to see if there are any new tax credits that you can get. Tax credits change all the time. Instead, start making plans for the tax credits you will use when you file your taxes next year.
2. Donate to non-profit organisations
You can help a good cause and lower the tax you owe simultaneously. Giving twenty dollars to charity or buying a book for ten dollars may not seem like a lot of money at first, but when added up over a year, these reasonably small purchases can quickly add up to hundreds of dollars. A tax credit can be taken for anything that costs more than $2. In any case, don’t forget to keep the ticket!
3. Check ATO pre-fill info twice at all times.
It might look like an easy way to save time to fill in the blanks with information from the ATO, but that’s not the case. It will always be in your best interest to use your knowledge as the basis for your analysis. Your information may not be current because banks don’t always give ATO information until late August. It is your job to fix any problems the ATO brings to your attention. It might be helpful to work on your tax return with a tax accountant from a reliable company. According to Kalculators, their tax planners go through the toughest training program in the business. This helps them get all the details right and get the most money back for each client.
4. Put money into your retirement account
This is very helpful for pairs where one person doesn’t work or makes less than $40,000 a year, which includes benefits like superannuation. This is because putting money into a superannuation account can lower the tax that one person has to pay. The partner who makes more money can put up to $3,000 into the super fund of the partner who doesn’t work and get a tax break of 18%, or $540.
People who don’t make much money can also add to their union fund. For every dollar you put into super, the government will also put fifty cents into it. People who make up to $45,000 a year can benefit from putting extra money into their super.
5. Hire a professional
Talk to a tax agent to get more tax money back and stay out of trouble with the ATO. Tax professionals are here to help you do your taxes right and get the most money out of them. To the ATO, on the other hand, getting taxes is their main job, not making your tax return bigger. 70% of Australian tax forms are taken care of by tax agents. There are different kinds of tax preparers. Some tax service companies send your return to someone who isn’t a tax agent or lawyer. Instead, they might be a data entry worker.
Conclusion
This guide has explained the top strategies you can follow for huge refunds on your tax returns. Follow them and seek help when necessary. Having a tax agent can also make the whole process easy and better, which is why The Kalculators is here to help. If you are in Australia and don’t know how to go about your tax and refunds, we can help. We help you with all your tax-related problems and improve your financial status.
