During the year, buying stuff for work can be difficult to remember, so when tax time comes again, we have to do one of these three things:
We have a lot of receipts scattered around, trying to locate them.
The deductions are not included in our tax returns, which means we do not receive a better refund.
The deductions have been added in and we're hoping we're not audited.
It is important that you keep your tax records for five years after lodging your tax return so you can prove to the ATO that you spent the money on the tax deductions you're claiming.
The following documents may be necessary for a personal tax return before going into our top tax record keeping tips:
Receipts and invoices for work expenses, subscriptions, etc.
Work logbooks (e.g., driving logbooks, home office logbooks, phone logbooks, etc.)
Insurance statements for private health plans
Certificates of Medicare Levy Exemption (if eligible)
Here are some ways to keep track of your tax records all year round in order to get the best tax refund and keep the tax man happy.
At the end of each year, categorize your expenses using the categories above and total the costs for each category. E.g. 3 x $10 donations = $ 30 Total
There's a high probability that a dozen receipts stuffed in a folder will fade over time. Using your email account, create a folder called "TAX", take a photo of your receipt, email it to yourself and save it in the "TAX" folder you created - don't forget your password!
Record your Motor Vehicle usage with our ATO compliant logbook
Feel free to contact us for any assistance you may require. At Instant Tax Refunds, we strive to provide high-quality service that constantly meets and sometimes exceeds our customers' expectations.