Instead of looking for ways to get out of paying taxes, it is better that you file your returns in a systematic and efficient manner which will allow you to spend more time at work where you can make more money. But mind you there are certain ways to reduce your taxes and one way of getting to know them is to hire a professional tax consultant who will take care of all your tax concerns.
This article deals with some tips to help you increase your tax refunds; let's take a look at them:
NOTE: please check for deductions as per the tax laws applicable to your state and country or consult your taxation accountant .
One thing that helps with your taxes is to have your records in order. Make sure you keep invoices and statements of medical expenses, which are not included in your medical cover so that you can claim these as deductions when the assessment is done. There are deductions like dental insurance premium or even premiums on health insurance can be shown as medical expense depending on your income.
Deductions and taxes keep changing every year and it is very important that either you keep yourself updated with all the changes or then if you have hired a tax advisor, he will be aware of the changes. The entertainment allowance which is used for personal expenses cannot be claimed for tax deductions and in such cases the employer must be aware so that this expense is taxed to the full and you don't have to face a tax liability after the assessment. The percentage of deductions of ordinary and necessary entertainment expenses and meal expenses can be deducted up to almost 50%
One good practice for this is to keep a log book that records the distance traveled so that you can correctly calculate your travel deduction. A point to remember is that if you have two jobs and you are traveling from one office to another then this expense can be deducted, but if you are traveling from home to office or back then it is a personal expense and it cannot be deducted. This may vary from state to state. Some states even allow the travel expenses for seminars and conferences to be 100% deductible.
Deductible travel expenses include: airfare, hotel stay, taxi costs, parking fees, tolls and even tips given.
If you keep your tax records organised and well planned then it will ensure that you don't miss out on any deductions and also this will make filing your taxes a much easier job. Keeping your records in track also helps you answer any questions posed by the tax department and this helps you avoid paying any extra taxes or penalties
Even if you don't file your taxes, it is important that you are aware of the deadlines and last dates so as to avoid penalties. If you are unable to file the returns in time then you can request for an extension which will be granted to you if your last year's tax procedures are up to date. Extensions are not always granted and depend upon the situation.
One of the fastest ways to get your taxes filed is to do in online. The returns are processed in almost half the time that is taken for a paper process and so is a good option. Also an e-file is a better option as it picks on a problem much faster, so that it can be dealt with there and there and also it gives you a confirmation regarding your return immediately.
Filing your taxes can be a time consuming job and a confusing one at that if you are not knowledgeable about tax matters. In such cases you should think of hiring professional tax consultants in Sydney with Taxable Accounting at www.taxableaccounting.com.au.
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