Four Critical Deductions to Claim on Your Individual Tax Returns

If you are preparing to lodge your individual tax returns, you should plan on taking advantage of all applicable tax deductions. Often, people miss out on numerous deductions and suffer significant and unnecessary financial losses. Under ideal circumstances, you should hire a tax agent to help you handle your returns and provide guidance on deductions. However, if you are set on filing your taxes without expert guidance, you should remember to claim the below commonly forgotten deductions.

Vehicle Expenses

You should claim fuel and maintenance deductions if your personal vehicle is used for work-related reasons. Ideally, you should be able to make claims on the expenses except for the costs of driving to and from work. This deduction can be calculated using the logbook, or you can claim according to the amount of money spent per kilometre. Individuals who are eligible for this deduction must prove that they own the pertinent vehicle and that the expenses were incurred during working hours.

Union Charges

If you are part of a union at work, you might be required to pay regular fees for continued benefits. The amount of money required will vary depending on the type of union and the rules imposed. When filing your individual tax returns, you might be able to claim deductions on the union charges. This deduction can alleviate your tax burden. You should also consider lodging a claim if you are a member of a professional body. These fees are often quite significant, so claiming can be financially beneficial.

Home Office Expenses

Working at home is not an uncommon practice in the modern commercial set-up. Numerous people are able to fulfil their professional duties through computers, phones and tablets without visiting the office. Unfortunately, some charges are incurred in the process of working from home. For example, there are expenses related to using your personal computer, electricity and even space. If you are an employee who works occasionally at home, you can claim your home office expenses. If you are completely home-based, you can claim your occupancy costs as tax deductions.

Mobile Phone Fees

You should plan on claiming deductions for your mobile phone expenses. You are eligible for this deduction if you make work-related calls to clients and co-workers on your personal phone. You should note that you cannot claim your entire phone bill in your tax returns. Therefore, you should use a logbook or other record to determine the percentage of calls made for business purposes before lodging your deductions claim.

About Me

Tim's Tax Advice Blog

Hello, my name is Tim and this is my tax advice blog. When I became a freelance writer, I didn't have a clue about tax. I kind of knew I should be paying it but I didn't take the time to actually work out the formalities. Things were OK for a while and my career got off to a decent start. However, I had a real problem at the end of the year when I had to work out my tax bill. I got in touch with a tax service and they really helped me with the calculations and the paperwork. I learnt a lot of cool stuff and I now understand the tax system.