From reviewing tax returns prepared by individuals, we’ve found that the 6 most forgotten tax deductions are:
1. Tax Agent Fees
Paying a Tax Agent to help you prepare your tax return, and any advice they provide you throughout the year is a tax deduction. So bring along their invoice for last year!
2. Union Membership fees
Union membership fees are a tax deduction – so that weekly or monthly deduction from your pay helps you claim more at tax time.
3. Work Related Car Expenses
If you have multiple jobs and travel between workplaces, you can claim the kilometres from your travels.
Note any travel to and from home is NOT a deduction.
You’ll need a log book for at least 12 weeks.
4. Home Office (inc internet) expenses
If you’re renting your home, and you have a dedicated area for doing work at home, then you may be able to claim a percentage of your electricity, rent and internet expenses.
Note we generally don’t recommend this if you own your home – because it will cause you Capital Gains Tax if you ever sell your home. But your tax advisor can assist you here.
5. Work Related Mobile Phone Expenses
If you use your personal mobile phone for work, you can claim the portion of your expenses
You’ll need to track at least 4 weeks of your calls – highlight your bill and work out a percentage of total call time.
6. Laundry Allowance
Have you got a uniform (with your employer’s logo on it) that you’re supposed to wear, and you have to keep it clean and tidy?
If you clean them yourself, you can claim up to $1 per load. If you get them laundered or dry cleaned, keep the receipts to maximise your deduction.
To see how the above relates to you, please consult your tax professional for specific advice tailored to your personal circumstances.