What to do (and what not to do) at tax time.

It’s that time of year again. The one you either love or loathe, TAX TIME!

And let’s face it, the only reason you love it is because you’re getting a big fat refund, how else could it be in any way fun?

For the last eighteen years or so, my job has been to prepare individual tax returns. Now, now, contain yourselves folks. I KNOW how sexy and riveting that sounds, but what this often joyless occupation has allowed me, is to interact with all kinds of people from nearly every corner of this great country.

And as you can imagine, it’s also given me the opportunity to see a lot things that cannot be unseen. In fact I’d dare to say, when it comes to the world of income tax, I’ve just about seen it all.

Here are a few of my observations, some “dos” and “don’t’” for tax time if you like…

DO

1. Keep your receipts!

I know, I know, you’ve heard this all before but far out, if I had a dollar for every person who told me that they’d like most of their tax back and yet hand me nothing other than a group certificate to prepare their tax with, I’d be Clive Palmer. It takes all of my might not to scream-whisper at the person sitting in front of me “Hang on there mate, just let me activate my crystal ball and see if I can just magically make it rain money !” NO. Everybody needs to keep their receipts. Unless you want to claim less than $300 in which case you will NOT get a massive refund. So just keep them okay? Pretty please?

2. Check to see if there are any special deductions you may be able to claim due to your occupation.

Did you know that there are certain jobs where you can claim a portion of your Foxtel subscription? Or occupations where your stockings and your out of town coffee can be claimed? You may very well be missing out on some amazing deductions because you don’t know and therefore, don’t keep the receipts. On the flip side, you also might be under the impression that you are entitled to claim your pet dog to guard your shed because you’ve got some tools in there. You’d be wrong on that count but that’s why you should Go HERE, the ATO website, and check out what you are entitled to.

3. Tell me about cash income.

Or don’t. But whatever you decide, remember that yes, once you tell me about the 6 months you worked for Dazza and he paid you in cash, I am obligated to tell the Tax Department about it. I prepare your tax return, I am not a priest.

DON’T

1. Listen to the Pub Accountant. 

A few beers, a few peanuts and the advice starts to flow. “My mate Johnny gets ALL of his tax back EVERY SINGLE YEAR. He claims his pool, and his married mans tax and he says he works from home and claims his whole house as a tax deduction.”

This is where you can picture me with a dangerous look of indifference on my face, lurching forward and saying to my client: “OH REAAAALLLY?”

It is so incredibly dangerous to listen to the “pub accountant”. What you must understand is that your REAL accountant will be doing their utmost to get you the best, legitimate tax outcome possible. That way, you will recommend them to your friends. Why on earth would they be trying to get you the shittest refund known to man? What could possibly be in that for them?

2. Try and claim your alcohol.

No. Your alcohol, gifting OR imbibing, is not deductible. OK, once upon a time, I believe in the eighties, you could get away with a fair bit of stuff, boozy lunches being one of them. Now, your average everyday employee? Nope. And hey, I’m just as disappointed by that as you are.

3. Try and pass off your new pectoral implants as a legitimate medical expense.

Sure, there are certain medical expenses, over a certain threshold, that you can claim and receive a rebate for as long as you made a medical rebate claim in 2013, but it cannot be ELECTIVE. So yeah, guy who tried to tell me it was a procedure due to excessive exercise, a) I can read (google) the terminology on an invoice and b) Dude, I have eyeballs and can see your new plastic chest.

4. Try and convince me that you take heavy tools to work each day when you just admitted that you don’t own a vehicle.

Just stop, I am not mentally challenged.

5. Show me pictures of your colonoscopy.

Nope. Visual confirmation NOT necessary. A simple invoice will suffice.

OK.  So they are just a few observations from my years of preparing tax returns.

My best advice?

• Have all of your information ready to go when you make the appointment (including your spouse’s information)
• Keep your receipts (even if you’re not sure if they are claimable, just keep them)
• Maintain a log book if you use your car for work for at least 13 weeks and during your busiest commuting time
• Declare ALL of your income (The ATO have ways of finding out).
• Also be sure to keep a diary if you travel interstate or overseas and clearly mark what is personal vs business
• Don’t be scared to ask questions and most important of all
• Get yourself a good tax agent.

Happy New Financial Year people!

Do you have any tips for making Tax Time as pain-free as possible? Let us know below.