What are you leaving on the table for the tax man? By Steve Marsten.

Tax season is well and truly underway and its refreshing to see plenty of new clients. Now many taxpayers have had their tax prepared in prior years by non tax accountants or they have chosen to prepare the returns themselves online. Seems so easy! However we note that many taxpayers are missing out on some critical tax deductions as a result. They are leaving plenty on the table for the Tax man!

Tax Professionals with experience tend to ask much better quality questions to flesh out the many unthought-of deductions that do not get claimed yet they are incurred in carrying out ones income producing roles.

We feel it’s vital that you claim deductions for everything that you’re entitled to. Based on our recent start to the season we have noted that many taxpayers have overlooked several claims in the past.

These include:

1.    Professional memberships and subscriptions.  If you’re a member of a professional or trade association as part of your work, you can claim a deduction for the amount you pay in subscriptions. This also covers union fees if you’re a member of a trade union, as well as subscriptions to trade or professional magazines or – if you’re an investor – subscriptions to key publications like Money magazine.

Another key deduction that taxpayers should be conscious of is to consider prepaying your fees or subscriptions for next year before June 30, you can claim a deduction this year, which can be a useful timing benefit.

2.    Tax advice and preparation. If you paid for a tax professional to complete last year’s tax return, you can claim a deduction for the cost in this year’s return. What’s even more beneficial is, you can also claim a deduction for any travel costs you incurred getting to and from your agent. Also don’t forget that if you’ve paid for any tax advice during the year, that too is usually deductible.

3.    Income protection insurance. This one is often forgotten by taxpayers at tax time. If you pay for insurance premiums for a policy covering the loss of income, those amounts are tax deductible. But be careful; that doesn’t include life insurance, TPD or trauma insurance. It also excludes policies paid from your superannuation fund.

These are just some of many expenses that do get overlooked often. Feel free to speak to one of the experienced team at Sothertons and make sure no claim is missed. Call us on 4972 1300.