How to Avoid Making Incorrect Tax Claims

Over eight million Australians claim work-related expenses each year, and when it comes to tax, many of them want to ensure that they do the right thing. Each year, over $21 billion is claimed back in work-related expenses, so it’s important for individuals who do so to ensure that they are only claiming back the correct amount that they are entitled to. Whilst individual mistakes tend to be quite small, the impact overall can be quite significant. We’ve put together some top tips to help you make sure that you claim the correct amount of tax.

Choose a Registered Tax Agent

One of the best ways to ensure that your tax claims are all correct is to make sure that you choose a registered tax agent. Although most tax agents are committed to ensuring that you do the right thing and make the right choices when it comes to your tax, some have been identified by the ATO as offering ‘special’ deals which inflate claims and generate a larger refund. To ensure that your tax refund is trustworthy, you can check on the Tax Practitioners Board website.

Double Check

Most of the time, any incorrect tax claims are the result of human error. It can be easy to make a simple mathematics mistake which could lead you to believe that you are claiming back the right amount of tax that you are owed. One of the simplest ways to avoid making this mistake and ensure that you are claiming back the correct amount of tax is to double check or even triple check! For the best results, ask for a second opinion if you think that either yourself or your tax agent has made a mistake. Mistakes can hold up the processing of your tax return, so determining any mistakes earlier will ensure that the whole process runs smoothly.

Keep Records

Another issue which could arise is if you make a claim for an item that is not eligible. In order to ensure that you avoid mistakes, it’s important to ensure that you are only claiming for items that you have bought yourself, and have not been reimbursed for. Secondly, you must ensure that any money that you claim back was spent in relation to your work or business, and not a private expense. Keeping records such as receipts is important to prove this if needed.

Tax mistakes can be easy to make, but will cause a range of issues.



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