4 Mistakes to Avoid in Filing Tax Returns in Australia

The ATO scrutinizes taxpayers’ files to find out mistakes on tax returns. With modern equipment and tools, ATO access information on share economy income, band and credit transactions, health insurance, centrelink, child support, and other details of taxpayers. Tax filers claiming wrongful deductions or leaving gig incomes on filing tax returns come into the ATO spotlight easily. In other words, it is important to lodge accurate tax returns to avoid being investigated by ATO.

4 common tax returns errors of taxpayers

Taxpayers commit many mistakes while filing tax returns in Australia. Here are 4 common mistakes to know so that you can take steps to minimize the chance of getting scrutinized by the ATO:

1. Leaving out some incomes

On your tax returns, make sure to show only the accurate figures while entering income and amount of tax paid. Leaving out some incomes will invite scrutiny from the ATO. They possess all the records of your income and look into accounts to compare with the submitted documents. Thus, it is imperative to enter correct and complete incomes.

For accurate and seamless tax return filing, our registered tax agents offering taxation services in Craigieburn can be useful for taxpayers to get a seamless experience.

2. Wrongful tax deduction claims

The ATO scrutinizes tax deductions claimed by Australian citizens. There is no doubt that they go after tax dodgers who hide their profits overseas to avoid paying taxes. You should also remember that they also look into your account and financial transactions that occurred in a year. What they don’t know is your deductions. Now, ATO analyses every item that you claim for deduction. You will be on the ATO’s officials radar if the deductions look too high with no receipts for the same.

To claim the rightful deductions, you must remember the following things:

Keep receipts of purchases so that you don’t need to hunt for them later. Enter the exact amount from the receipt in your tax return Our registered tax agents can guide you through the process of claiming rightful tax deductions in your tax return filing. Consult with our tax experts offering Tax returns filing in Truganina and across Australia for a seamless experience.

3. Claiming more for a rental property or holiday rental property expenses

There are strict rules to when you can and can’t claim tax deductions relating to rental property expenses. It is worth noting that not all expenses can be claimed in the tax return filing. As a result, taxpayers can often commit errors while filing their tax returns.

For instance, you must remove the overall expenses occurred when you stay in the holiday home personally or allowed friends or relatives to stay there free of cost.

Don’t forget to declare all the income generated from the property in the financial year. In other words, you can only claim expenses for the year when it was available for rent. For guidance and help in claiming expenses on the rental property, consult with our experienced experts for tax filing in Craigieburn and across Australia.

4. Forgetting to keep receipts

Forgetting to keep receipts of purchases can be a costly mistake. Unfortunately, this is one of the commonest mistakes of people. Without receipts, you can claim up to a maximum of $300 worth of work-related expenses. Thus, receipts are the proof to gain rightful tax deduction and get a bigger tax refund.

If you are caught over-claiming deductions, however, ATO will ask you to repay some or full amount plus interest charges and penalties. It is better to claim for deductions that can be proven and avoid coming under ATO scrutiny.

Conclusion

If you have questions regarding tax deductions and expenses to claim in tax return filing, contact our experts at Quintessential Taxation. Being one of the professional tax accounting firms in Truganina, we serve clients in Melbourne and other states of Australia. We assure to provide a maximum refund after lodging your tax return correctly and legally. Contact us to consult with our experts now.

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