As tax time looms, the focus often shifts to maximizing deductions. While many taxpayers are familiar with common deductions like work-related expenses and charity contributions, several eligible deductions often go unnoticed. From overlooked work-from-home expenses to specific deductions for tradespeople, understanding these can significantly increase your tax refund. In this guide, we’ll highlight the top tax deductions you might be missing out on, providing you with the insights needed to maximize your return. With TAX 24/7, you can ensure no deduction goes unclaimed, making tax time less of a burden and more of an opportunity.
Taxes are what we pay for a civilized society, for modernity, and for prosperity.”
Ruth Bader Ginsburg
When that dreaded tax time comes around, one item on the agenda of every taxpayer who is required to submit a tax return is working out deductions. While most taxpayers are aware of the common tax deductions that are claimable such as work-related expenses of fuel, travel mileage, uniform purchases and laundry, and in some cases, union fees, there are many eligible deductions that people overlook. Sure, charity contributions are one deduction that is unrelated to employment expenses and bank charges such as fees are another, however we are going to uncap the lid on some of the top tax deductions you might be missing out on.
The Missing Tax Deductions for those Who Work From Home
To name a few of the tax deductions Australia related that many people tend to overlook, or are unaware that they are eligible to claim, one of the top claimable expenses is telecommunications. Using your mobile phone or a landline for work-related purposes, or using your internet service in the course of undertaking employment duties, are both claimable expenses. If you work from home and have an internet service in your name, you can likely claim this as a deduction, whether it be through a percentage of the cost for employment-related use. On the topic of Work From Home (WFH) arrangements, home office equipment and furniture can be claimable, however it depends on your arrangement. It is best to check with a qualified Accountant who has the expertise and knowledge on claimable expenses for WFH workers.
The Uncap on Tax Deductions Australia
For many business owners, and for employees in certain role capacities for that matter, professional development and self-education expenses can be commonly overlooked as claimable deductions. Surprisingly, the number and type of itemised expenses that can be claimed for this type of deduction, whether it be through education or professional development associated with your career, or the business that you manage, are more than what many people might imagine. Understanding what constitutes as eligible deductions can help maximise tax refund amounts, and that is worth a dime.
Common Tax Deductions for the Tradies
Many tradespeople, otherwise known as “tradies”, can tend to overlook deductible expenses at tax time. Perhaps, your role requires that you purchase a particular type of clothing or footwear that is not a uniform with an insignia; this might fall under Personal Protective Equipment (PPE) such as hi-vis vests, steel-cap boots, safety glasses and hat, even earmuffs. Additionally, if you purchase tools and equipment for the purposes of fulfilling your role as an employed “tradie” and you are not reimbursed for the costs, then at tax time these are deductions you can claim.
Wrap-Up on Deductions: Tax-Saving Tips
On a final note about the top missing tax deductions that many people overlook, let’s talk super. Most taxpayers think about superannuation in terms of their employer’s contributions but what about personal contributions to your own super fund or for your spouse? You might be surprised to know that these contributions are claimable deductions in your tax return.
At TAX 24/7, we are here to help you with tax-saving tips Australia related. If you’re ready to gain more depth in how to maximise tax refund amounts or on missing tax deductions, then reach out to our team today. We are here to help and we hear you!