Tips As Tax Deadline Looms

Tips As Tax Deadline Looms

As the filing deadline draws near, do you find yourself rushing to finish your taxes? Have no fear, you're not the only one! The following are some suggestions that, if followed, will make the process somewhat less difficult. To begin, check that you have all of the required documents and information at your disposal. This includes any income statements, investment statements, and receipts for any costs that are tax-deductible that you have.

If you are going to use a tax preparer, it is imperative that you provide them with as much information as they request in order for them to accurately complete your return. One last piece of advice: be patient and take your time. It is not worth the risk to rush through the process because it will only result in blunders. Instead, if you follow these guidelines, you will be able to ensure that your tax return is completed accurately and on time.

Because the time for filing your taxes in Australia is drawing near, it is essential that you make sure you are informed of what you need to do in order to satisfy the criteria. The following are some suggestions that, if followed, will help you move in the right direction.

Don't put it off until the very last second! If you start preparing for your taxes as soon as possible, you will have far less worry later on. Put all of your documentation in one place and get yourself organized. Create a plan, and then see it through to completion.

Tax Deadline Looms 

If you haven't submitted your tax return by the 31st of October, you could potentially be subject to a penalty of up to $1,050 if you're found to be in violation of the law. To date, around 10 million people have now submitted their returns, which is really an increase from this time last year; however, approximately 4 million people have not yet submitted their returns. The Low and Middle-Income Tax Offset, which was proposed by Scott Morrison and may provide you with a refund of up to $1,080, may qualify many of those four million people for an unexpected tax credit.

Have you checked in to the hotel yet? When filing a return that is more than one month late, you will be subject to a penalty that will rise with each passing month. You may theoretically be subject to a fine of $210 on November 1st, followed by an additional fine of $210 every month, up to a total of $1,050. In the event that you reach that point, the ATO has been known to estimate your income (and consequently, what you owe them), and they have the ability to eventually prosecute you.

There is a simple strategy that you might implement in the event that you are running up against the deadline and believe there is no way you will be able to meet it. Appoint a tax agent! You will receive an extension of the deadline until May 15, 2020, if you are registered with an agent by the 31st of October. This provides you with an additional six and a half months.

More (generic) last-minute advice before you lodge:

  • Have you made any personal contributions to your superannuation fund that you need to change in order for them to be tax-deductible before you submit your tax return? After you have submitted your return, it is too late to make any changes, and you could end up owing the government thousands of dollars more in taxes.
  • Did you know that regardless of your job, you can claim up to $300 in work-related costs even if you don't have the receipts?
  • Have you tallied up all of the money that was donated?
  • Do you have something in the bank? Remember to submit a claim for any bank fees that you may have been charged.
    Do you travel to visit you, tax agent? If this is the case, the money spent on travel is tax-deductible!
  • Do you have to wear specific types of protective gear or do you have a required uniform? To reiterate, some of these costs might be tax-deductible.
  • Do you have a job in construction? What about the fees associated with keeping a license current?
  • Do you work in teaching? Consider the cost of pens and paper, student fees, and the items you buy to give them as rewards.
  • Do you work in the medical or social care fields? Think about the meals you bought while working overtime.
  • Have a job in retail? Did you have to pay anything extra to travel between stores?
  • Professional? When transporting a device or documents, do you carry them in a handbag or a briefcase? Again, check with your financial institution to see if these are tax-deductible.

Tax Return Oct. 31 Deadline Looms

The majority of Australians who earn an income that is greater than the current level of $18,200 are required by law to submit an annual tax return.

Due to the fact that October 31st will fall on a Sunday in 2021, the Australian Tax Office will extend the deadline for filing returns individually or registering with agents to the end of business on November 1st. This is a concession given to taxpayers in order to accommodate the holiday.

If you sign up with an agent, you'll have additional time to file your return before the deadline of May 15, 2022, which is when it must be submitted.

To date, the Australian Tax Office says that more than 7.2 million taxpayers have received a combined total of almost $20 billion in tax refunds during this current fiscal year.

There is a significant tax deadline approaching in just a few short weeks, and if you don't file your taxes on time, you might face "nasty" penalties, including the loss of hundreds or even more than a thousand dollars.

A rapidly approaching tax deadline may wind up harming taxpayers' wallets at a time when the majority of us can't afford a penalty while the coronavirus crisis continues to rage on.

The date of October 31, which is just around the corner, is the absolute cutoff for submitting your tax return.

Because October 31 falls on a Saturday, the due date is actually Monday, November 2nd.

Despite the fact that you have a couple of days added on to the original deadline, it is not worth taking any chances at this point.

If you fail to submit your tax return by the end of this month, you run the chance of being subjected to some really steep penalties.

Anyone who does not submit their tax return by the specified deadline may be subject to penalties imposed by the Australian Tax Office (ATO).

The penalty is $220 each month, and the ATO will continue to send fines for a total of five months until it is submitted, which could result in a total penalty of over $1000 if it is not paid.

As soon as you pass that deadline, you become liable, and you will be penalized with a fine that increases every 28 days until you hit the maximum penalty, which is either five months or $1100.

It's not the kind of money you want to be paying, so it is not recommended.

Don't Miss The Deadline

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There is a way to get around the requirement and avoid incurring penalties for those who are unable to submit their tax return by the specified deadline, or even if you simply "can't be bothered" to do so.

You could go directly to a tax accountant because they have an extended deadline until around May of the following year. However, it is essential to keep in mind that you still need to make sure you employ an accountant before the cut-off date of October 31 or else you'll still be subject to the fines.

Mr. Chapman provided an explanation and stated that "if you want to hire a tax accountant, you need to be registered with that accountant by the cut-off date, so that you're on the tax agent's books." If you wait until November to see your accountant, you won't be able to get anything done.

You Simply Need To Complete It In Order To Move On

Mr. Chapman insists that there is no way around it if you don't want to pay an accountant to handle it for you; you just have to get it done by the end of this month.

"If you want to lodge it yourself, make sure you get it done before the cut-off," he said. "If you want to lodge it yourself, make sure you get it done."

"Make sure that you lodge with an agent before that time, even if you don't have time or don't want to bother," the message read.

Mr. Chapman continued by saying that it is simple to locate a tax accountant who is able to do your return over the phone or online, so there is no requirement for you to meet with someone in person.

"At this time of year, things can get very hectic, so if you do have troubles in terms of doing it yourself, it's in your best interest to hire an agency," he added. "It pays to get an agent."

The ATO Can Be Quite Cruel At Times

Mr. Chapman warns that putting off filing your tax return will only cause you to get into a fight with the tax collector.

According to Mr. Chapman, "If you're still not lodged after that date, then the ATO gets really angry with you."

"First, they'll send you a warning, then they'll send you an estimated assessment, and then they'll send you the fine," he explained.

They also have the option of taking legal action against you for failing to file a tax return.

He described the process of filing taxes as "quite basic," despite the fact that most people do not enjoy it very much.

According to what he said, "you need all of the information about your income, how much you've earned over the course of a year, as well as all of the information regarding the deductions you wish to claim, such as your receipts."

"You want to make sure that you are including all of your income - don't leave anything out, like if you have been doing Uber or Airbnb or if you have earned any cryptocurrencies like Bitcoin. "

"Check that you've included all that ought to be included in your response."

Tips As Tax Deadline Looms

If an individual does not have a professional accountant making a claim for them, then the individual is required to submit a claim by the 31st of October under Australian tax legislation.

According to Susan Franks, a senior tax advocate for Chartered Accountant Australia and New Zealand, "if your tax return isn't lodged by the due date, you could receive a late lodgment penalty," which, if left for too long, can equal to a maximum of $1,110. This was stated by the Chartered Accountant Australia and New Zealand.

Ms. Franks has presented taxpayers with five helpful suggestions to help them make the most of this tax season, with only two weeks left until the deadline for filing taxes.

Find out the date of the deadline and collect information.

Ms. Frank has warned customers to be mindful of the deadline of October 31st, which applies to those who are filing their own tax returns.

In addition, she instructed customers to double-check that they have completed all necessary documents before proceeding.

"The ATO will have pre-filled a lot of information in your tax return, such as salary and wages, interest and dividend income, medical insurance, and bank account details to send your refund to," she said. "This includes information about your salary and wages, interest and dividend income, and medical insurance."

"You will be required to verify that these particulars are genuine and accurate, that you have reported all of your income, and that you have the required records to substantiate your deductions.

"Before you submit your return, you should have your tax file number, details of your income sources, details of your bank account, information on Medicare, and, if you are married, details of your spouse's taxable income in hand.

Ms. Frank advised her clients, "You should also have records supporting any deductions that you are claiming," and she emphasized the need of keeping these records.

The Opportunity to Extend the Deadline Loophole

Ms. Frank further stated that even though individual tax returns are required to be submitted by the 31st of October, taxpayers who lodge their returns through an accountant may be eligible for a longer period of time, depending on the taxpayer's previous lodgement history.

"To be eligible for the extension, you need to contact your local Chartered Accountant prior to October 31; and remember, the cost for this is totally tax-deductible," she stated. "If you do this, you will not only be qualified for the extension, but you will also save money."

Please Disclose Every Source of Revenue.

Ms. Frank advised individuals who are responsible for filing their own tax returns to keep an eye out for all of the income they have made and not to rely just on the pre-filled statement provided by the government.

In addition to reporting any and all government payouts, you will also be required to declare any and all earnings from second occupations. This includes money collected through services such as transportation and accommodation," Ms. Frank added.

"The Australian Taxation Office (ATO) obtains information about these payments; thus, it is imperative that you record them in your tax return in order to prevent the ATO from interrogating you about them."

Plans of Payment with a Low-Interest Rate

Those who are having trouble gathering the funds necessary to pay their taxes have the option of entering into a tax debt payment plan with the ATO, which will assist them in meeting their current and future tax obligations.

According to Ms. Frank, anyone who is having difficulty dealing with the financial consequences of COVID-19 should discuss this matter with the ATO or your Chartered Accountant rather than hope that the ATO will disappear.

Ms. Frank came to the conclusion that the most important thing to do in the event that life gets in the way for whatever reason, and you miss the deadline, is to have a conversation with the ATO as soon as possible.

If Australians fail to pay their taxes by November 1, they risk facing fines of up to $1110 each.

Those who continue to "bury their heads in the sand" throughout tax season run the risk of incurring fines of up to $1110 if they fail to make adequate preparations for the rapidly approaching due date.

On November 1, you will no longer be able to register your tax return for the fiscal year 2020-21 without running the danger of being penalized by the Australian Taxation Office. The potential 'failure to lodge' penalty of $222 will increase the longer you wait to enter your return.

calculator financial chart financial

But the image of the evil tax bogeyman is one that the ATO is attempting to debunk. The agency wants to assist people to realize that filing a return isn't the drama that they might believe it to be. This year, the ATO hopes to eliminate the image of the tax bogeyman.

To begin, Tim Loh, an associate commissioner with the Australian Taxation Office, stated that late-filing penalties are often reserved for people who owe money, as opposed to the 80% of people who end up getting something back. According to what he mentioned, the deduction of 80 cents per hour for working from home will be especially helpful for a great number of people this year.

According to him, "there is a four in five possibilities that you'll be getting a refund regardless," which means that the odds are better than backing a winner of the Melbourne Cup.

"The longer you wait, the greater the likelihood that you will not be eligible for a refund. You are required to do it in order to receive those benefits if you are receiving childcare help, CCS, or the family tax benefit.

People who file their taxes through a registered tax agent often have until May to schedule an appointment and submit their income and expenses, so it is unlikely that they will be penalized if they miss the November 1 deadline.

Mark Chapman, director of tax communications for H&R Block, says that in cases where a penalty is levied against taxpayers who prepare their own tax returns, the Australian Taxation Office (ATO) may sometimes waive the penalty if it is deemed "fair and reasonable to do so." One example of this would be in the event of a natural disaster or a serious illness.

Mr. Loh did state that ignoring the deadline and presuming a reimbursement was on the way was still "very dangerous,", particularly in light of the complexity of 2020-21 and the upheaval caused by the coronavirus.

For instance, individuals who are counting on work-related car use, lodging, and travel to increase their tax refunds could be in for a rude awakening as the ATO is apparently cracking down on these types of claims.

Mr. Chapman further recommended that individuals who are looking for an additional reason to file their tax return before the October 31st deadline should not go any farther than the possibility of receiving $1,500 in tax refunds when they lodge.

"If you earn between $48,000 and $90,000, you are probably in a better financial position this year thanks to the combination of the changes in tax thresholds announced in the previous year's budget and the extension of the low- and middle-income tax offset," he said. "This is because the low- and middle-income tax offset has been extended."

In the end, Mr. Loh stressed that the most essential thing for individuals to do was to submit their paperwork through the myGov website, regardless of whether or not they were concerned about having to pay a fee.

He advised, "The important thing is to keep in mind that if you feel as though you have a debt, we are here to help."

"Once we have a better understanding of the circumstance, we will discuss the available solutions.

"Don't bury your head in the sand, we're working through it together," the other person said.

Since the first of July, there have been around 8.63 million filings, which is almost 20,000 higher than during the same time period the previous year.

According to Elinor Kasapidis, senior manager of tax policy for CPA Australia, taxpayers who require additional time to finish their tax return should work with a tax professional prior to November 1.

She advised against filing an expedited tax return because doing so increases the likelihood of making errors.

"Remember, you can cut your own hair, but you'll get a better outcome if you see a professional. Although it is possible for you to do so, you should not do so. The process of preparing your tax return is exactly the same.

If you consult with a tax consultant, you may be sure that you are paying the appropriate amount of tax and that you are claiming the largest return to which you are eligible.

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