June has arrived and tax-time is looming. You have just a few weeks to take advantage of tax breaks before the 2009/10 financial year closes for business. Start getting your documents together and tracking down receipts to back up deductions. Tax-time can be rewarding for those who take the time to get it right.
Claim all possible deductions to reduce your tax bill and hopefully give you a tax refund. Think of everything you've had to buy to carry out your job this financial year.
If you work from home you can even claim some of your rent, internet connection and electricity bills. Don't forget your charity donations, everything from the Haiti earthquake appeal to your sponsor child. You may also be able to claim a 20 per cent tax offset on out-of-pocket medical expenses above $1,500.
If you can't find receipts, but know where you spent the money, go back and see if they can give you a copy of the receipt or invoice. Bank and credit card statements showing details of purchases can be used in some cases.
When it comes to work related expenses, the Tax Office website (ato.gov.au) has a list of acceptable expenses for various industries so check them out to make sure you're doing the right thing.
Use the education tax refund
Now is the time to check whether your kids need computers, textbooks or stationary for schoolwork. Buy them before the end of the month and take advantage of the 50 per cent tax refund on eligible education expenses.
This financial year you can claim expenses of up to $780 for each child in primary school and up to $1,558 for each kid in high school and get half your money back. You qualify for the Education Tax Refund if you receive family tax benefit Part A.
Offset capitals gains with losses
Profits from selling shares or investment properties bought after 1985 will be charged capital gains tax at your marginal tax rate. Losses made on these kinds of investments can offset profits and cut your capital gains tax bill. So if you made a big profit on the sale of one investment this financial year, consider selling some of your disasters.
Delay income until July
Put off receiving income until next financial year if you're likely to earn less in 2010/11 and will be on a lower marginal rate. It will also allow you to take advantage of the Government's last round of personal tax cuts for low and middle-income earners. If you have your own business you may want to hold off invoicing your clients until July.
Start a 2010 tax file
Filling in your tax return will be a breeze if you have all the necessary information at hand. If you are using an accountant it will make your visit time and cost-effective.
Start getting together your group certificates, bank and dividend statements, investment property accounts, receipts for tax deductible work or education expenses, any travel logs and health fund details if you plan to claim the private health insurance rebate.
Its the time of the year when people are busy gathering all their documents and receipts , We 've got a document scanning software at work and it helps a lot to get in track with all the necessary documents needed to do tax... So may you have more returns!!!!!!