If you have multiple sources of income, it can be difficult to understand the taxation laws in Australia by yourself. A professional tax accountant can help make sure you get accurate tax returns without any confusion. Here are some ways to make sure your tax returns are as accurate as possible when working with your tax accountant:
Understand The Tax-Free Threshold To Your Jobs
The tax-free threshold is applicable to all Australian residents who pay tax, which currently is $18,200. This is something that you fill out on the form provided by your employer. If you have more than one source of income, you can generally only claim the tax-free threshold from the employer who pays the highest salary. The second payer withholds tax at the non-tax-free threshold rate, which is generally higher. You cannot claim the threshold from all employers as this would misrepresent your earnings and lead to incorrect tax returns. This can be confusing, so it may be a good idea to work with your tax accountant to identify where to claim the tax-free threshold from and where not to when it comes to multiple incomes.
Store All Your Expense Records
Depending on the nature of your work, you may be entitled to claiming returns on some expenses you have incurred through the year for any of your jobs. For example, if you work from home for one employer, you may be able to claim home office expenses and a portion of your Internet and electricity. If one job requires you to use your personal car for travelling, you may be eligible to claim depreciation and fuel. Talk to your accountant about all the records you need to hold on to so you can claim your returns with complete accuracy during tax time.
Detail Your Jobs To Help Your Accountant Identify Specific Deductions
Some jobs have deductions that you can claim, while others may not have any. You need to detail the nature of each of your jobs or sources of income to help your accountant identify specific deductions that may be relevant to you. For example, if you wear a uniform to your workplace, you may be able to claim for deductions on clothing and laundry. If you take a course to educate yourself for a formal qualification, you could be eligible for tax deductions.
In order to make sure you get the most accurate tax returns, it's always best to work with a professional. Reach out to a tax accountant in your area for more information.