Records You Need to Keep: Supporting Your Tax Return Claims

Keeping accurate records is essential for supporting the claims you make on your tax return. Good record-keeping ensures you can substantiate your deductions and income if the Tax Office ever asks for proof. Let’s look into the types of records you need to maintain the Gotax way.

Why Keep Records?

Records are your backup when it comes to verifying the claims on your tax return. They help you accurately report income, claim tax deductions, and ensure you’re complying with tax laws. Without proper records, you might miss out on deductions or face penalties for incorrect claims.

What Records Should You Keep?

1. Income Records: Keep payslips, payment summaries, and bank statements to verify your employment income. For investment income, maintain records of dividend statements, rental income, and interest earned.

2. Expense Receipts: To claim tax deductions, you need receipts or invoices for all work-related expenses, such as travel, uniforms, and education costs. Digital copies are acceptable, so consider scanning paper receipts to keep them safe.

3. Vehicle and Travel Records: If you claim car expenses, keep a logbook detailing trips, including the date, distance, and purpose of each journey. For travel expenses, retain itineraries, tickets, and accommodation invoices.

4. Home Office Expenses: If you work from home, keep records of utility bills, internet costs, and any equipment purchases. These support your home office deduction claims.

5. Investment and Property Records: Maintain documents related to the purchase and sale of investments or properties, including contracts, settlement statements, and loan documents.

6. Foreign Income Records: If you have foreign income, keep records of foreign tax paid, bank statements, and any relevant correspondence.

Common Misconceptions

• Digital Receipts Aren’t Valid: Digital copies of receipts are perfectly acceptable, provided they are clear and legible.

• Small Expenses Don’t Need Records: Even small expenses require records if you intend to claim them as tax deductions.

Deduction Grabber

The ultimate Gotax tool to compliment your Tax Return.  Record your expenses throughout the year and comes with all the logs you need.

Examples of Record-Keeping

• Deductible Expense: You purchase a laptop for work and keep the receipt. This supports your tax deduction claim for work-related technology expenses.

• Non-Deductible Expense: You buy a coffee on the way to work but don’t keep the receipt. This expense is personal and not deductible.

Gotax Advice

For hassle-free record-keeping, try the Gotax Deduction Grabber App. It offers logbooks and expense recording systems to help you track your tax deductions throughout the year. Download it by scanning the QR code and simplify your tax preparation process!

Now what!

Keeping thorough records is vital for a smooth tax return experience. By maintaining accurate and comprehensive records, you can confidently claim deductions and report income. For more tax tips and advice, visit Gotax Blogs.

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Be Aware: Tax law and interpretations of that law change on a frequent basis. This article is good at the time of writing. Always seek updated content when making decisions on Tax Deductions.