Mistakes on my Tax Return | Online Tax

What Should I Do If I Make a Mistake on My Tax Return?

Mistakes happen, even with something as important as your tax return. If you realise you've made an error in your tax return, don't worry, you won't lose your house.  There are steps to fix it. Here’s a simple guide to help you through the process.

1. Identify the Mistake

First, figure out what kind of mistake you've made. Common errors include:

• Incorrect income reporting
• Wrong deductions or credits
• Missed income
• Calculation errors

2. Gather Your Documents

Before you can correct the mistake, gather all the relevant documents. This might include:

• Income statements
• Bank statements
• Receipts for deductions
• Previous tax returns

3. Correct the Mistake

Depending on the type of mistake, the way to correct it can vary:

For Small Errors: If it's a minor error, like a simple math mistake, the ATO might catch it and correct it for you. You'll receive a notice explaining the change.

For Larger Errors: If the mistake is more significant, you'll need to request an amendment to your tax return. This can be done through Gotax (if you're an existing client) or by contacting the ATO directly.

4. Request an Amendment

When requesting an amendment:

• Clearly indicate that it is an amendment.
• Include all necessary documentation to support the correction.
• Explain why you are amending the return.

Example: Let's say you forgot to include some interest income from a bank account. You'd log into your myGov account, go to the ATO section, and request an amendment with the correct income details.

5. Pay Any Additional Tax

If the correction means you owe more tax, pay it as soon as possible to avoid additional interest and penalties. 

6. Check for Refunds

If the correction means you overpaid, the ATO will issue a refund. Keep in mind that it might take a few weeks for the refund to be processed.

7. Keep Records

Keep copies of all amended returns and related documents for your records. This is important in case there are any questions or issues in the future.

Examples of Common Mistakes

Example 1: Incorrect Income Reporting

• You reported $50,000 in income but forgot to include $2,000 in interest income.
• Solution: Request an amendment with the correct income amount.

Example 2: Missed Deductions

• You forgot to include $500 in charitable donations as deductions.
• Solution: Request an amendment with the correct deductions and include receipts.

Example 3: Calculation Errors

• You made a maths error that resulted in a higher tax bill.
• Solution: The ATO may correct this automatically, but you can also request an amendment if needed.

And Lastly...

Making a mistake on your tax return isn't the end of the world. By taking prompt action to correct it, you can minimise any potential penalties and ensure your tax records are accurate. Always double-check your returns before filing to avoid mistakes in the future. If you're unsure about anything, consider consulting Gotax to help you navigate the process.

Need to ask tax questions ... Ask Phoebe is available for you.

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