By Anthony Bell, Finance Expert
As we near the end of another financial year, the words on everyone’s lips are tax returns, and more importantly this leads to the question all clients have “How do I maximise my tax refund?”
Your three key strategies to maximising your tax refund:
- Identify what eligible tax deductions you have and are entitled to.
- Gather as much supportive documentation as possible that verifies your tax return.
- Consult your tax professional or accountant.
Broadly speaking, to identify your eligible tax deductions it’s important to start with looking at the expenditures you incurred during the income tax year in earning your sources of income.
For example, a tax deduction can be in the form of motor vehicle expenses, telephone usage and education expenses but it’s important that there is a clear requirement of these costs in order to earn your income. When it comes to investment income, it’s important to identify the expenses you’ve incurred in maintaining and servicing the income earning investment.
Secondly, once you have identified the income and expenditure you need to include in your tax return, gather as much supportive information as possible.
Documents such as an employment summary, final bank statements for the financial year indicating interest income and interest paid on active investments, a diary containing information about what you did each day if it is relevant in supporting a tax deduction you’ve made, original expense receipts, investment income and expenditure summary statements, as well as your previously lodged tax returns.
Thirdly, the completion of the tax return can be complex and to maximise the outcome of a tax return lodgment, see a professional accountant or tax agent as they will be able to offer specialised advice and assist you through the process.
The best advice I can give you is when you have finished the 30 June 2009 income tax return, try and look into the next 30 June 2010 income tax year and begin your tax planning for the year ahead.
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