What Else Should I Know About My Tax?
It is tax time again. The 2014/15 financial year has closed and everyone is going to lodge his or her tax return. If you are a resident for Australian tax purposes you must do your tax return if any of the following apply to you:
You had amounts of tax withheld from income that you received or earned
You paid an amount under the pay as you go system (PAYG) instalment system during the year and
You had amounts withheld from various investments because you did not provide your tax file number (TFN) or Australian Business Number (ABN) to the investment body.
The above are the most common reasons to do your tax return; there are many other reasons which may or may not apply to you.
Everyone wants to maximize their tax refund; some people maximize it legitimately and some people do it illegally. You must know that the Australian taxation Office reserves the right to ask for proof of your deductions claimed in your tax return and therefore, you must make sure that you can substantiate your deductions when the Tax Office requests you to do so.
When it comes to tax refunds, the majority of people are not fully aware of just how much they can claim. In an average Australian financial year approximately $10billion is paid out by the Australian taxation Office through tax refunds.
Tax time is generally viewed as one of the more difficult times for individuals, but it does not have to be if you take measures to better understand your tax return and just what relates to you in order to maximize your tax refund.
The amount of your tax refund depends on the deductions you claim for the period. By keeping your receipts for everything throughout the year the more chance you have of getting a bigger refund. Your duty is to keep all receipts and then Individual Taxation Returns will decide what is relevant and what is not.