Do you file your taxes on your own? Or hire a professional accountant for the service? Doing it yourself is a good option if you are well-versed but you could be doing some mistakes. Alternatively, your accountant might also be unknowingly doing some errors on the tax return. Whatever the case be, keep a check on these common tax return mistakes.
- Approximating Income and Tax Estimates: This is likely to happen when you have multiple income streams and don’t feel like calculating every single penny. However, investing extra time in noting the exact values can help you avoid any problem or attracting ATO’s attention. Plus, if you are paying advance taxes, you might reduce your liability by using exact values.
- Inflating Deductions: Doing taxes needs you to enter the values for your claims against deductions and investments. Although you might not be asked for proof at first, any discrepancy noted by ATO might need you to produce evidence. Thus, you should claim only those deductions you have valid receipts for. And this also means you should start maintaining all the receipts to ensure the best returns.
- Not Claiming all the Entitlements: If you think submitting too many claims can attract trouble, it isn’t the actual case. You can invite trouble by making false claims but as long as you have all the proofs and receipts, you are safe.
- Forgetting the Basics: Forgetting to update fundamental details like name, address, and even bank account details can cost you. For instance, you will miss all the refunds with the wrong bank account detail.
On top of all, using tax accountants in Toongabbie is always recommended to avoid trouble and file accurate returns.