Every year, the ATO makes thousands of dollars in audits relating to mistakes people make when lodging their taxes. The tax process can be very complicated, and the cause of most tax mistakes is simply confusion or a lack of awareness of regulations. It is important to be aware of these common mistakes so that you can avoid making them yourself and make the most of your tax return. If you are struggling to file your taxes, it may also help to seek the advice of tax accountants Gold Coast. Here are the biggest mistakes Australians make on their tax returns, year after year.
They don’t provide evidence for all of their claims.
It’s important that you save the receipts from all purchases or expenses that can be claimed on your tax return. Without the receipts, you can only claim up to $300 worth of deductions for work expenses. If you submit your claims without a receipt, you won’t get the full return that you are entitled to.
They use estimates or incorrect math when calculating their income.
There are times when making an educated guess is okay, but calculating your tax return definitely isn’t one of them. Many people just give a ballpark figure when stating their income, which could get you into serious trouble with the ATO if you are audited. Another common mistake many people make is not double-checking their math. Take an extra half hour to go through everything with a calculator – it will definitely be worth your while. When we file tax returns, they are all cross checked to ensure that everything is entered correctly, preventing potentially costly mistakes.