Tax tips for work expenses.
With 2009/2010 Financial Year Tax Tips & Tax Deductions there are several ways in which you can use your work-related expenses to reduce your tax liability. In some cases if the expense is less than $300 you don’t even need to provide receipts, although to be on the safe side it is best to keep all receipts to back up your claims. Some expenses you can claim include union fees, the cost of conferences, seminars or even formal educational courses. The cost of a computer, software and home office expenses can also be claimed if used as a necessary part of your job. The cost of journals and trade magazines which directly relate to your work can be claimed and any equipment needed to protect you as you work, for example safety boots if necessary or sunscreen if you work outdoors.
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If you have a work uniform, protective clothing or other specialised clothing needed for your job use these expenses to reduce your tax liability. You can find out what clothing is eligible for deductions at www.ato.gov.au, so it’s best to check before submitting your claim. It is also possible to claim the cost of laundering work attire, such as dry cleaning and ironing, and if you launder your own clothing you can claim the cost at $1 per load. However if you claim more than $100 in clothing expenses you will need to keep all relevant receipts and a record of your clothing and laundry expenditures.
Tax tips for bank fees
2009/2010 Financial Year Tax Tips & Tax Deductions don’t just cover your work expenses. Bank fees can also be used to reduce tax liability, this is particularly true if you have your own business.
If you pay bank fees that directly relate to your earning these can be claimed. For example, if you incur a monthly fee for a bank account used by your business this can be claimed and bank transaction fees related to the withdrawal of cash for the business can also be claimed.
However if the fees incurred are simply to simplify your account, such as an account that allows you to pay bills, then the fees can’t be deducted. In addition if you use the account in conjunction with your credit cards, mortgage or other personal financial matters, these fees are most likely not deductible for tax purposes.
Tax tips for charitable donations
If you donate as little as two dollars to a charity registered as a deductible gift recipient, then you can claim this on your tax return too. Check on www.abr.business.gov.au if your charity has registered for deductible recipient status. Also note, if you get something in return for your donation such as a raffle ticket or tickets for an event, then you can’t claim for these donations.
With these 2009/2010 Financial Year Tax Tips & Tax Deductions you should be able to reduce your tax liability and pay less tax in the financial year 2009/2010. For more information on tax and expenses go to www.ato.gov.com.au/individuals. Filing your tax return is free, but if you want you can pay an agent to do the job for you for about $100, then claim their fee back on your tax return next year.
