Filing an income tax return is a nerve-wracking task for many. It requires time and expertise to claim deductions and save maximum cash. This step-by-step individual tax return checklist is no less than a lifesaver. It will give you everything you need to save more money and file your tax returns without any hassle.
Furthermore, you’ll also get crucial information about a reliable chartered Accountant in Parramatta to make your taxation journey even easier. So, stay with us till the end!
1. Gather Essential Personal Details First
Firstly, check your Tax File Number (TFN), date of birth, full name, address, and bank details for refunds. Next, if married, add your spouse’s name, date of birth, income, and TFN. Also, list dependents like children with their birth dates or Centrelink details. Finally, note your residency status and any changes from last year.
2. Collect All Income Documents Thoroughly
Begin with payment summaries from employers. Then, get bank interest statements and dividend reports. Include share sale details, rental income, and expense records. For sole traders, gather business income logs. Do not skip Centrelink summaries, lump-sum pensions, foreign income, or super statements. Thus, you cover every source.
3. Compile Deduction Receipts Systematically
Start with work expenses like uniforms, tools, self-education, union fees, subscriptions, and protective gear. For vehicles, maintain a logbook showing odometer readings, fuel, repairs, and parking. Track home office costs such as electricity, internet, and equipment wear. Likewise, log property expenses, including interest and fixes.
4. Review Offsets and Rebates Carefully
Get your private health insurance statement for the rebate. Note personal super contributions, especially non-deductible ones. Add HECS-HELP debt and spouse super info if needed. Check offsets for seniors, dependants, or low earners. In fact, this often increases your refund.
5. Perform Final Checks Before Lodging
Review all numbers for mistakes. Verify income entries closely. Tools like myGov spot errors fast. For paper forms, confirm TFN and bank transfer info. E-lodge via myTax or an agent for speed. Keep records for at least five years.
Common Mistakes To Avoid While Filing A First-Time Tax Return
- Trying to incorrectly or overclaim deductions
- Missing the deadline for filing your tax return
- Not keeping proper records or proof of your purchases.
- Giving incorrect personal details, especially bank details
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At Prowess Business Advisors, we’re one of the most reliable business advisors and tax accountants in Blacktown, offering accounting, tax and financial management services.
We provide strategic tax planning and advisory services to help you legally reduce your tax burden while ensuring full compliance.
Our client-centric approach ensures that you receive personalised, expert-driven solutions tailored to your needs.
Whether you want to get your finances managed or want to save more on taxes, we’re your most trusted partner.
Contact Prowess Business Advisors today and save more on taxes with the right expertise!
Frequently Asked Questions
How much does a tax agent cost vs self-lodge?
Self-lodging is basically free but lacks expertise; on the other hand, tax agents cost a little more but are worth the initial investment as they help you save more on taxes through deductions.
What deductions can I claim on my tax return?
You can claim deductions for expenses directly related to earning your income, such as self-education, home office, tools, travel between jobs, investment costs, charities, fees of managing your tax affairs, etc.
Who are the best business tax advisors in Sydney?
Prowess Business Advisors is one of the best business advisers in Sydney. They can simplify accounting, taxes and financial management for you so you can focus on growing your business.