Top Tips for Preparing Your Income Tax Return

I always get a bit nervous when filing my taxes. Last year was a nightmare, and I’m still figuring out what went wrong. This year should be different, though, because I finally found great tips for tax preparation. I can’t wait to share them with you and make filing taxes less stressful and more productive.

Gather Tax Documents

Anyone who has had to file taxes knows how complicated it can be. You have to gather all your income and expense records, work out deductions and offsets, claim rebates and credits, and submit your tax return by the due date. This can be challenging, especially if you are self-employed or working multiple jobs.

To prepare your tax return, you will need the following:

– Personal details for you and your spouse

– Bank account details for a direct credit refund

– All income statements, including PAYG, TFNs and superannuation

– Tax file number (TFN) from all employers

– Summary of investment income from financial institutions

– Details of managed funds, shares and bonds

– Rental properties – details of expenses and income

Lodge on Time

The tax year runs from July 1 (the current year) to June 30 (the following year). That means the 2021 tax year ran from July 1, 2020, through June 30, 2021. You must file your taxes by recommended date by ATO  every year.

If you’re self-employed as a freelancer or contractor, you must pay provisional tax on your estimated annual income throughout the tax year. If you don’t make the payments on time, you’ll be charged interest and penalties.

You can file your taxes online using the Australian Taxation Office’s e-tax software. Alternatively, you can use a registered tax agent to manage your affairs for you for an additional fee.

Use E-Filing

Tax preparation can be mind-boggling, but it doesn’t have to be.

Managing your documents in the digital world can be a huge asset for filing your taxes and keeping everything organized for the following year.

You can pay bills electronically, keep track of receipts and payments, and keep everything easily accessible through one simple, intuitive interface. All you need to do is scan and upload your documents, and they’ll be stored securely in the cloud until you’re ready to use them. You can even access them remotely from anywhere in the world.

Whether you’re an individual taxpayer or a small business owner, managing your receipts and payments digitally will save you time and hassle when tax season rolls around again next year. Stop wasting time looking for missing documents when you could be spending it with those you love!

Use Technology to Your Advantage

It’s tax time, and technology can help.

Software programs like TurboTax use questions to guide you through the process. Plus, you can have your return reviewed by a CPA before you file it.

If you’re one of the millions of taxpayers who itemize deductions, you may be able to take advantage of free online tools that can help make your tax filing easier.

Choose a tax Preparation Service with Care

If you don’t want to be doing your tax return, then you have a few options. You could employ an accountant to do it for you, or you can use a tax preparation service.

This will help you fill out your return and then send it to the relevant authorities.

There are two types of tax preparation services:

  • tax agents who are qualified and registered with the Australian Taxation Office (ATO)
  • non-registered preparers or tax agents who may not be qualified or registered with the ATO

You need to choose your tax preparation service carefully. If you use someone who is not registered with the ATO and does not know what they’re doing, it could cost you more. You might receive a penalty for filing your return late or even find that you’ve overpaid your taxes and are entitled to a refund.

In Australia, the good news is that most tax preparers are actually registered with the ATO and therefore have the correct qualifications.