If you’re like most people, you probably dread doing taxes. What can help ease the stress of tax time? Being prepared. Because everyone’s finances are a different, you’ll need to figure out what tax category you belong to and what documents you need to have on hand when the time comes to do your taxes. Being financial-records organized will do wonders for tax headaches.
What the tax departments of the government wants to know is how much money you make. They’ll tax you on that amount. It’s painful to let any of your hard-earned money go, but at least it will be put to use for the services the government renders. There are circumstances that allow you to get some of your money back called tax breaks. You’ll need to do research on what you can “write off” for tax breaks according to the laws of the state.
Having organized tax reports and documents for filing makes it quicker for you to file your taxes and quicker for you to know if you have to pay more or if you’re getting a refund.
Be ID Ready
Have your tax file number ready. Anything – a business, a person, a partnership, or a pension fund – that pays taxes has to have a tax file number in Australia. If people under your care need to have identification numbers, you’ll need to have all those on hand for filing their documents. Missing ID numbers that are pertinent can really drag the process of filing with starts and stops if rejected due to missing information.
At the end of the tax year, you should get forms that tell you how much income you earned from your place of employment. It also details the amount that was taxed. For people that have multiple jobs, they should get that form from each place of work. For people who contract to other businesses, that business should also have a form for you that show you how much money you made without tax deducted. If you work for yourself, you have to do a lot more work to determine your gross earnings. This means organizing all documents related to expenses and earnings related to your business transactions like receipts, kilometer records for the business vehicle, office supplies you used for the business, and other bills related to your business.
If you have interest earned from savings accounts, this is taxable by the government. You’ll need to get tax forms for those and fill those out from the savings account statements you have. At the end of the year, your savings accounts statements should match what’s on the tax file reports. Interest can work in your favour too. If you own a home and have a mortgage, the interest paid on the mortgage can be written off. The same goes for interest you pay on a rental home you own that isn’t occupied due to valid reasons.
Make Note of Your Good Deeds
If you have contributed to a legal charity, you can get a receipt from the charity about your donations which you can write off.
Do Your Research
Every state or government has special requirements when it comes to filing taxes. Be sure to do your research and find all the documents that you need to file pertinent to you and your situation. To make things easier, you can hire bookkeepers like at https://www.ezyaccountsbookkeeping.com.au/bookkeeping-brisbane/ to help you be tax organized throughout the year and to help you with filing taxes for your business or for personal income.