Top 5 TAX Mistakes! | etax returns

These are the Top 5 Tax Return Mistakes

Not declaring all your income.

One of the most common mistakes is forgetting to include your income.  Things such as rental income, dividends, interest, or capital gains can be easily left out.  Especially AirBNB where you may rent out a room or income from Social Media sites and other income generating sites.  Be aware that most income sources are now reported electronically to the Australian Taxation Office (ATO).  That means that the ATO tallies up all the bits and compares them to what you report.   Avoid penalties or audits by declaring all income.

Neglecting to claim eligible deductions:

Individual Taxpayers often overlook legitimate tax deductions, such as work-related expenses, self-education costs, or charitable contributions. Failing to claim these deductions means paying extra tax that could have been avoided. It's essential to keep receipts and records to substantiate these claims.

And the best way to keep your receipts and record your transactions throughout the year is with our very own Deduction Grabber.  Scan the QR code and you’re ready to roll. 

If you are already signed up with Gotax then the password will be the same.

Providing incorrect or incomplete information

on the tax return can lead to delays in processing your tax return and could lead to potential penalties.  Penalties can be as high as 200% of the tax you sort to avoid.  Double-checking all your details, including personal information, tax file number (TFN), and bank account details, is crucial to ensure accuracy.

Incorrectly claiming private expenses

as business deductions: Sole traders or individuals with side businesses, sometimes make the mistake of claiming personal expenses as business deductions. It's important to distinguish between personal and business expenses accurately and only claim those directly related to the business.  You can use the Deduction Grabber App to assign a business percentage to most expenses.

Not seeking professional advice when needed:

There are oodles and oodles of pages that comprise the Australian Income Tax Laws.  They can be complex, and individual circumstances may vary significantly. Failing to seek professional advice when needed can lead to missed opportunities for deductions, credits, or other tax benefits. Engaging a qualified tax agent, such as Gotax will ensure compliance and optimize your tax situation.

And don’t forget… individual situations will vary.  When in doubt ASK, we are just a Chat Bot away or message us for clarity. 

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