How To Get The Most Out Of Your Tax Return In 2020

How To Get The Most Out Of Your Tax Return In 2020

The end of the financial year has finally come upon us, and with it, it’s time to start thinking about filing your taxes. Regardless of whether your employment circumstances have changed or remained the same in the midst of COVID-19, you can definitely agree that tax time is a great time to take stock of the past financial year and ensure that you’re getting the most that you can out of your tax return. In order to do that, you have to be well-informed and tax return savvy, so here’s a guide on getting your tax return for this financial year!

What You Can Claim

With tax returns, you’re able to claim deductions for certain expenses, as long they are work-related. In order for your deductions to be eligible, you must have spent the money yourself without any reimbursement from your employer, and you must be able to provide proof by means of a receipt or record. If applying for a deduction, you need to make sure that you’re claiming for an expense that is directly related to earning your income.  This can range from, but is not limited to:

  • Tools, equipment, and other relevant work assets
  • Self-education and training expenses
  • Vehicle and travel expenses
  • Clothing, laundry, and dry-cleaning expenses for work uniforms or work wear
  • Home office expenses

It’s important to note that if you have been required to work from home because of COVID-19, you are entitled to some additional deductions as a result. These are:

  • Home office equipment, which includes the purchase and use of computers, printers, furniture, and phones. You will be able to claim a decline in value for items over $300, or the full cost of items to the maximum amount of $300.
  • Computer consumables such as printer paper and ink, and other assorted work-related stationery
  • Phone and internet expenses
  • Electricity expenses as according to the heating, cooling, and lighting that your home office space may require
  • Cleaning costs for your home working area

So as you can see, there’s actually quite a lot that you can claim this tax return season. It’s just a matter of making sure that you have the proper records and receipts as proof so that when you sit down to file for your taxes, it will be a breeze, and you’ll get the most out of your tax return.

 

How To Lodge Tax Online

The ATO requires that you lodge your tax return online, or with a tax agent, before the 31st of October. Lodging your tax return entails providing the details of your income, and any expenses that you can claim for deductions. Providing this information makes it easier for the government to calculate how much tax you were required to pay for the financial year, and, if you have paid more tax than you were actually required to, you’ll be able to receive a tax refund.

You will need an income statement, or payment summaries from your employer(s), receipts or records of what deductions you are claiming, any record of payment summaries from Centrelink if you are a beneficiary of their services, your bank account details, and, if you are married, your spouse’s income. If you are paying for private health insurance, you will need your details for that as well. Make full use of the myGov site, and link to the ATO online services to make your experience easier, as some of the information will be pre-filled for you when you use myTax to lodge your tax return.

And don’t forget: if your taxable income is less than $126,000 you may be eligible to get some of the low and middle income tax offset. While this doesn’t automatically mean that you’ll get a bigger lump sum this year, a tax offset means that your overall tax bill is reduced, meaning you might have to pay less if you have a tax bill, or a bigger refund than you normally would receive. 

 

What To Do With Your Tax Return

So you’ve finally lodged your tax return, and received a good amount for your tax refund. Now what?

It can be strange, suddenly having a lump sum in your account, but don’t sit on this windfall for too long. Some people might choose to put away the entirety of their tax refund to save for a rainy day, but it’s important to also live life how you’re meant to live: in the now!

Spending money wisely is a smart choice, so make full use of the End of Financial Year sales that have begun- after all, why pay full price when you can get items that you’ve been wanting at a great discount? From furniture, technology, fashion, homewares, cars - there’s a wide variety of sales available for people that can fit their requirements to a t.

Perhaps your couch has seen better days, and you’ve been wanting to replace it with a new, more comfortable model, but just haven’t had enough money to justify the purchase. Or maybe you’ve had your eye on a big, 4k Ultra HD Smart TV, but the model that you’re after is just a bit too expensive at full price. Maybe you’re wanting to finally replace your car to a newer model, and have finally found the car of your dreams. Maybe you’re looking at finally renovating your old kitchen’s cupboards and appliances after years of use. If this sounds relatable to you and your current needs, your tax return can definitely go a long way towards your new purchase. 

However, if you find that even with your newly acquired tax return, you just about fall short of buying what you need, it’s important to know that you can also make use of short term loans in Australia to make up the difference. This is especially useful if you’re almost all the way to saving up for your dream car, tv, dress, home, or anything of the like, and just need that extra push to get you through. And with Ferratum’s simple, easy to understand application process, and instant online decision, you won’t have to wait around for ages to see whether or not you’ll be able to go through with your dream purchase. Once your online short term loan is approved, you can expect that the funds will be transferred to your account in less than 24 hours. Quick and easy!