When it’s tax return time, you need to know what documents you might need. It is always better to be prepared in having the right documents, than not having all the documents and when it’s time for submitting your taxes, you’re struggling to get all the correct documents. Here are some of the documents that you need so that you’re prepared for your tax return appointment.
Your income documents
One of the most important things that you need to have, when you’re preparing your tax returns, is all your income documents. There’s normally more than one type of document that you need to add to your tax returns.
The first, and most important document that you need is the PAYG Summaries from employee. Without this document you can’t file your taxes. You need to get this document from your employee, before you’re filing your taxes.
If you are receiving foreign income, you also need all the documents to prove the amount that you’re receiving each and every month. Many people are forgetting about this important document. It’s against the law to receive a foreign salary without paying tax for that salary. More explained here.
Except for the PAYG Summaries from employees and proof of your foreign salary, you also need to have these income documents at hand:
- Net income and loss from business,
- Any rental income,
- Any allowances,
- And, personal service income.
This is just the most common income documents that you need to have ready, when you’re going to file your tax return.
Your expenses for tax returns
It is just as important to have all the documents and prove ready, if you want to have any expenses that qualify for tax returns. Many people don’t have the correct documents, and therefor they don’t qualify for any tax returns. They don’t really know how much money they are losing this way. Here are some of the most common documents that you need, to be able to get some tax returns.
- Vehicle expenses for your business. And, this normally includes your log book.
- Work uniform and other clothing expenses with the correct proof.
- Home office expenses,
- Telephone and internet expenses for business
- Legal and accounting fees for business
- Medical expenses
- Childcare expenses
You should always keep all receipts for tax deductions for your business. Without the receipts you will not be able to claim for any tax reductions. It is also important to keep all medical expenses receipts that you have paid for. This makes the chance of getting the reductions, much higher.
Many people hate it when it is tax return time. And, this is because they don’t always have the right documents at hand. If you have all the documents that you’ll need for filing tax returns, you will have fewer problems when it is that time of year, again. You can also just give all the necessary documents to a company like www.taxreturn247.com.au, and they will do the rest and submit your tax refund for you, without you worrying about it.