How to prepare, lodge and maximise your 2021 tax return.
With tax time upon us, one of our Directors, Andrew Catlow, provides us with a quick rundown of things to consider when prepping, lodging and hopefully maximising your tax return for the financial year ending 30th June 2021.
There are a number of factors that can impact your tax return, including sources of income from work, investments and government assistance, including any JobSeeker payments you may have received during the financial year.
Other factors that can play a part include work-related expenses, such as travel, equipment and clothing.
What documents do you need to lodge your tax return?
Some of the things you may need when lodging your return might include, but won’t necessarily be limited to:
- Your tax file number
- Your bank account details, so the ATO knows where to deposit any return you may be eligible for
- Any payment summaries or income statements from your employer
- Payment info from Centrelink relating to assistance and relief packages
- Details regarding any other sources of income
- Receipts or statements from expenses you are claiming as deductions
- Any private health insurance information you may have
- Receipts from charitable donations
Claiming working from home deductions this year?
The ATO has announced that a ‘shortcut’ method will again apply as an option for calculating relevant tax deductions for anyone who has worked from home during the financial year (1 July 2020 to 30 June 2021).
This means you can claim 80 cents for each hour you worked from home to cover any eligible tax deductions, rather than doing calculations for specific items.
*Note: You may need proof such as a timesheet.
As the shortcut is ‘all-inclusive’, you can’t claim the shortcut and then claim for individual expenses, such as phone and internet bundles.
Aside from the shortcut method, a fixed rate method (52 cents per each hour you work from home) may allow you to claim other deductions, or actual cost method can be used. For further details, check out the ATO’s home office expenses page.
Lodging your tax return with a registered tax agent.
Using a tax agent may provide you peace of mind, as it could save you time, highlight deductions you didn’t know about, while making sure all your claims are legitimate.
If you want to use a registered tax agent to prepare and lodge your tax return, then look no further! Contact our team at Moor Lewis & Partners on 4638 5300.
To make sure you have all the relevant information you need ahead of lodging your tax return, discover the ATO’s tax time checklist.