Putting together a tax return can be something you don’t enjoy. However, you must do it and get it right to avoid issues down the road. Unfortunately, some people don’t take their tax return seriously and are too careless. Keep in mind that if you don’t do your tax filing properly, you could be missing on a significant amount of returns. Knowing that other people are doing incorrectly can help you avoid their mistakes altogether. These mistakes include the following:
Neglecting Taxes Throughout the Year
Usually, if you have a problem with purchase proofs or missing information, you may put off your tax return filing after it is tax time. However, this can only make things worse at tax time. Thus, start developing habits such as taking photos of your receipts or printing bank statements every month. If you are a tech-savvy person, use applications to help you in tracking your expenses. Remember that fines can apply for late returns and if you owe money to the Taxation Office, you will certainly hear from them.
Choosing to Do It Yourself
Although you might be great with numbers, you cannot be on top of Australian taxation legislation. If you never spent many years of your life working exclusive in tax, hire a professional to do your tax return. You can find affordable accountants who can help you make more on your tax return than the amount you will pay them.
However, ensure you get the balance right in terms of choosing your tax pro. For instance, if you own a lot of assets and shares, it only makes sense to shoot for an established tax return accountant firm based in Sydney CBD and hire a dedicated tax specialist who has many years of experience.
Thinking you Cannot Correct Wrong Entries after Submission
If you have chosen to do your tax return on your own and make a mistake, do not fret. You can still correct the problem through the Taxation Office website. Just ensure you fix it online to save yourself a possible fine.
Not Declaring an Income Abroad
Even if you have earned an income overseas including pensions and annuities, business or government grant, capital gains, employment income, and investment income, you must declare all of them. Keep in mind that the Australian Taxation Office targets citizens who have undeclared assets or income overseas regularly. As governments around the world share data, it is impossible for you not to get caught.