Tips On How To Get Your Tax Returns Faster

In this blog, OrangeIQ will be giving you tips on how to get your tax returns faster. The average Australian is due $2600 in tax refunds but there is a big mistake you might make which could cause weeks of delays. Firstly, let us start with how to get your tax refund back as quickly and painlessly as possible. That is to say, the best way is to give yourself a couple of weeks to allow for data to be transferred. If you were to rush in, you are more likely to get asked for an explanation by the ATO. As a result, it can seriously delay your tax returns. You might be wondering, how can you get your tax refund faster? According to experts, you should use the three Ps. That is to say, preparation, patience and proof.

• Preparation:

Preparation is the key when it comes to speeding up the tax process. That is to say, the more prepared you are, the faster the process is. As a result, you can access your refunds faster. It is suggested that you should spend your first two weeks of the new financial year gathering your documentation. That is to say, your tax file number, timesheets, payslips, receipts and usage logs, etc. In addition, to make this easier, you should keep a record of everything throughout the financial year. Likewise, preparation also includes ensuring your accounts on the government’s online portal are up to date.

Above all, according to the ATO, it takes around twelve days to receive a tax refund. In addition, paper returns are processed manually, taking up to ten weeks so it is advised to do everything online.

• Patience:

On the ATO website, it is stated that it starts “full processing” of tax returns on July 7th with refund payouts to begin on July 16th. But, experts warn not to lodge your tax too early. That is to say, there is a risk that people who file too early will have to amend their returns or they could end up being audited. In addition, the ATO warns impatient taxpayers that if your tax return requires manual checks processing it may take longer.

Above all, to avoid manual checks and audits which will delay your payout, the ATO recommends not confusing their system if you can help it. For example, if you lodge your tax return twice, make a change while it is being processed or lodge tax returns for several years at once, among other things then you should expect delays. Further, you should double-check everything as incorrect information or out-of-date details will get between you and your tax refund.

• Proof:

The last step in our tips on how to get your tax returns faster is proof. That is to say, proof for in case you get audited for your tax-deductible claims, later on, it is important to have proof handy. You can claim all sorts of things on tax including work from expenses. For example, purchases of shoes, uniforms and even handbags.

Known as the “short cut” method, taxpayers who worked from home can claim back 80 cents per work hour for all their running expenses instead of calculating costs for specific running expenses as taxpayers would under normal circumstances.

In addition, people need to have the relevant information on how long they worked, how many days, the important questions, etc. The ATO will ask for some level of proof to value that amount of time. That is to say, timesheets are a must-have for situations like this. Further, people who travel to work might not be able to chalk that up to a tax-deductible expense. Anyone claiming car expenses will need to consider whether the use of their car for work purposes has changed or not. The taxpayer might be entitled to the claim, but they need to make sure they have proof.

Now that you have some tips on how to get your tax returns faster, let us move forward.

Things You Can Claim On Your Tax Returns

Now that we have given you tips on how to get your tax returns faster, let us move to some unusual things you can claim on your tax returns. We’re all trying to work out how to reduce our tax bill without breaking the law. That is to say, tax time is here once again and not every deduction is the same. Some are open to everyone, others to only a select few. For example, dogs, garden gnomes and dance lessons are some unusual claims that taxpayers have made. That is to say, depending on your area of employment, there is a range of tax deductions available to you.

The basic rule is that if you have made an expense as part of your job, you can claim it. For example, a taxi driver can claim fuel for their car while a tradie can claim a deduction for an array of essential tools. Below are some more examples of things you can claim on your tax returns:

• Moisturisers:

If you are part of a cabin crew or a pilot then you can claim specialised rehydrating treatments used to combat the abnormal drying conditions of working in a pressurised aircraft.

• Sun Protection:

For jobs where work takes place outdoors, sun protection including sunscreen, hats and sunglasses are legitimate tax deductions. This applies to jobs like gardeners, roadworkers, builders, couriers and even journalists who work out in the community. But, if you use them for both work and pleasure, you can only claim the work-related portion.

• Singing Lessons:

If you are a professional singer, you can claim classes taken to maintain specific vocal skills or to obtain a new work-related skill as legitimate tax deductions.

• Uniforms:

Some companies require staff to purchase their branded uniform. As a result, the cost is fully tax-deductible. Further, particular items of clothes that form an integral part of a uniform can be deducted. In addition, laundry expenses for cleaning a work uniform may also be claimable.

• Donations:

Many people forget that donations to registered charities are tax-deductible. In addition, giving money to support your local member of parliament, desired candidate or favoured political party is also deductible up to a certain amount.

• Advisory Fees:

Ongoing advisory services relating to income-generating assets, investments and your superannuations can be claimed as tax deductibles. In addition, you can claim your accountant fees and certain types of insurance, including professional indemnity and income protection, can also be claimed.

• Costumes & Props:

Another profession that can make unusual claims is circus performers. That is to say, the whole costume was allowable as a work-related clothing claim. Likewise, a professional sword swallower can claim ceremonial swords that are used in his act.

Now that we have given you tips on how to get your tax returns faster as well as some unusual claims that are possible. We hope you are ready for the next tax time.