Taxes – they’re a pesky aspect of life you have to deal with whether you like it or not. Is there a way to get around them? Not really. While you can’t avoid lodging your tax returns, you sure can make the process a bit easier for yourself. Whether it’s your first time or you’re looking to make things smooth sailing, we are here to help you lodge your tax returns for the best outcome.
What Is a Tax Return?
A tax return is a document that calculates your tax liability and tells you whether you’ve paid more or less than you’re supposed to. If you’ve paid more, you can get a refund. If you’ve paid less, you have to pay the remaining balance.
Who Should Lodge Tax Returns?
Anyone with a salary or income is required to lodge a personal tax return. In other words, if you’re paid by a company or earn income from your own business, you’re liable to pay taxes and, therefore, need to lodge a tax return.
When Can I lodge My Tax Return?
The financial year runs from July 1st to June 30th. At the end of each financial year, you need to report your income and claim deductions and offsets to the Australian Taxation Office (ATO). When can you lodge your tax return? Anytime from July 1st, with October 31st being the deadline.
Gather Your Documents
Before you can do anything, you need to make sure all your documents are in order. Here’s a checklist to get you started:
- Income Statements: You may know these as PAYG summaries. They come from your employer.
- Bank Statements: Keep all your bank statements at hand to show interest earned.
- Investment Statements: A necessary document if you earn dividends from shares. Private Health Insurance Statements: Submit these if applicable.
- Work-Related Expenses: Planning to claim over $300 in work-related expenses? Make sure you hang on to all those receipts.
- Other Incomes: If you have rental incomes or any other side hustle, you need to report those too.
Deductions and Offsets
Understanding deductions and offsets can help you get the most out of your tax return. Here are some of the common ones:
- Work-related expenses: Travel costs, uniforms, and tools you need for your job.
- Home office expenses: Working from home? You can claim some of those costs.
- Charity: Donations made to registered charities.
- Education: If you’ve paid for a course directly related to your job, you can claim that too.
How Do I Do My Tax Return?
Now that you’ve got your documents sorted, it’s time to decide how you want to lodge your tax return.
One thing to keep in mind, though, is that no matter how experienced you are, income tax is a complex area to navigate. One simple mistake can cause you to lose a refund or incur a fine.
Work with a Tax Agent
If it’s your first time lodging your tax return, it’s advisable to work with a tax accountant . Even those with experience often choose to lodge their tax returns through a tax agent, which is no surprise given the complicated nature of the process. A professional tax agent understands the nuances involved. Plus, you can deduct their fee from the next year’s tax return. We are tax accountant in Geelong, take care of all your tax and account matters.
Lodge Online
Confident you can lodge the tax return yourself? You can do it online via myTax. Here’s how to complete tax return online:
- Set up your myGov Account: If you don’t already have one, create an account and link it to the ATO.
- Log in: Once you have the account set up, log in and select the ATO from your linked services.
- myTax: Navigate to the myTax section. You’ll notice that the system pre-fills much of your information.
- Submit: Review all the information. Make sure to any additional income or deductions, and then submit.
myTax is free of charge and available 24/7. Returns lodged online are usually processed within two weeks.
Lodge a Paper Tax Return
If you prefer traditional paperwork, you can lodge a paper tax return. Here’s how to do it:
- Download all the necessary forms from the ATO website. You can also get them via traditional mail.
- Fill out the forms with your income and deductions.
- Send the completed to the ATO.
Keep in mind that even if everything is in order, a paper tax return can take up to 50 days to process.
Final Thoughts
No one really wants to deal with taxes, but it’s a reality we all have to face. While lodging your tax return seems stressful, it doesn’t have to be. Make sure all your paperwork is in order and choose the right method for lodging. Whatever method you choose, do not miss the deadline, or you’ll end up with a fine.