Whether you are an individual or a company, lodging your tax return accurately on time is important. However, there are some common mistakes that people make while filing their tax return which may result in audits from the ATO. The ATO automatically detects inaccurate tax returns. Hence it is better to understand the common mistakes and stay on top of things.
Mistake #1: Rental properties
This is one of the most common issues that ATO observes. Errors with rental property tax returns include private component, borrowing costs and claiming depreciation without a quantity surveyor’s report. Many taxpayers in Melbourne don’t realise what all they can claim, particularly land tax and strata levies. If you hire tax return agent in Melbourne, then you can ask them about the summary of income and expenses to make the return process easier.
Mistake #2: Math miscalculations
Math miscalculation is another common mistake of the tax return which occurs year after year. Errors in arithmetic figures need immediate correction. Failure to correct math errors can reduce or increase the amount of tax refund. Using a tax software programs can reduce math errors as these programs have built-in calculators that can do the work of addition, subtraction, etc. for you. However, you still have to make sure that the initial figures are correct. For example, if you enter $5400 instead of $4500, then all subsequent calculation will become inaccurate, and it can make a huge difference in your tax refund.
Mistake #3: Education tax refund
As per government statistics, there are over 400 000 parents who are eligible for the education tax refund, but they haven’t claimed for it. If you are eligible for Family Tax Benefit Part A, then you can get 50% back on certain education expenses for your school going kids.
Mistake #4: Not lodging
Everybody is busy in their personal and professional lives. Managing everything on your own may delay things. There are many people in Melbourne who not only delay the tax return filing, but they also have several returns outstanding. If you are paying tax, then make sure you lodge your return on time to get the refund and avoid late lodgment penalties.
Mistake #5: Doing it yourself
If you want to avoid above four mistakes, then it is better to hire a tax return accountants Melbourne. In fact, the fee that you will pay to the tax accountant is tax deductible. The tax accountants keep themselves updated with latest accounting and taxation rules. They are the experts who can help you avoid tax return errors.