Australians were reminded of five important tax deductions they can claim that can often be overlooked.
Australians determined to make the most of this year’s tax return have been reminded of five things that could easily be overlooked.
Submitting claims in all possible areas may seem like a daunting task, but the payoff could be a much bigger return.
H&R Block’s Director of Tax Communications, Mark Chapman, shared five things that can sometimes be overlooked when filing a return.
Professional memberships and subscriptions
Members of professional and trade associations can claim a portion of their dues on taxes, as well as union memberships, Mr. Chapman wrote for Yahoo Finance.
Subscriptions to trade or professional magazines and investment magazines for investors could also be claimed, he said.
Mr Chapman said fees for the coming year could be paid upfront and claimed as a deduction in this year’s claim, which he said could “be a useful timing benefit”.
Mr Chapman said many expenses could be claimed on investor-owned rental properties in addition to the mortgage interest deduction, which most people were already aware of.
Deductions could be claimed on this such as gardening, bank charges, pest control, security patrol fees, bookkeeping fees, repairs, end of lease cleaning, agent fees rental and lamination costs.
Property tax, credit checks for potential tenants, debt collection fees, key cutting and maintenance of water heaters, smoke detectors, air conditioning and garage mechanisms could also be claimed , did he declare.
Tax agent fees
Costs associated with hiring a professional to file a tax cut for the previous year could be claimed as a deduction, Mr. Chapman said, along with money used to travel to and from the appointment. come back.
All of the advice people have paid for throughout the year would fall under the same umbrella and could also be claimed.
Premiums paid for income insurance are also tax deductible, Mr. Chapman said.
He warned that the same did not apply to life insurance, critical care insurance or trauma insurance.
Policies paid for from pension contributions were also not included, he said.
An income tax deduction may be claimed if you make additional contributions on preferential terms – up to the ceiling – to your retirement pension.
By doing this, you can top up your total retirement pension, as long as the $27,500 cap is not exceeded.
Concessional contributions include superpayments made by your employer, as well as salary-forgone contributions, Chapman said.
“So if you have some cash in reserve, this can be a great way to boost your retirement savings and claim a tax deduction for doing so,” he wrote.
The payment must simply have been made before the end of the tax year and your super fund must be informed of your payment before you file your 2023 return.
Mr Chapman said there was a form on the ATO website on which a super fund or account could provide advice.