If you would like to know some important tips to avoid tax return problems, then keep reading our article!
Non-deductible health care deduction
Without limit of value for deduction of expenses with health, taxpayers end up inflating the amounts of expenses incurred and deduct expenses with people who are not their dependents in the IR declaration. According to the Internal Revenue Service, the taxpayer should only launch health care expenses on tax refunds made for his own benefit or that of his dependents.
Inclusion of non-deductible education expenses
Extracurricular courses, such as language courses, college preparatory courses, examination exams, and school supplies are not deductible for tax return purposes. Among education expenditures, only the expenses of the taxpayer and his dependents can be deducted with school, elementary, middle and high school tuition.
Omission of dependent income
By including dependents in the tax return, the taxpayer must report not only their expenditures, but also their income, assets, rights and debts. Omitting these values can lead the direct taxpayer to the fine mesh.
Earnings from previous jobs need to be declared
If you have changed jobs over the course of 2017, be sure to also declare the wages received from the former employer. As paying sources are obliged to provide this information to the Treasury, there is a chance that the lion will identify possible tax evasion.
Information of wrong values
The yield values should be meticulously declared, especially those who had withholding tax on tax refunds. These revenues are easily crossed by Revenue because they are also informed by paying sources. Most of the time, the error may be in incorrect numbers typing.
Those who pay child support may deduct the amount in the statement. But only if there is an approved judicial agreement proving the obligation.If you are not sure how this works, contact taxreturnco.com.au.
Omission of rents
Rents are considered taxable income for income tax purposes, so they must be declared by the recipient. In the same way, the rent amounts paid must be informed by the tenant taxpayer.
Undue inclusion of dependents
Charging the expenses of an acquaintance, even if they are deductible (such as medical expenses or school fees) does not guarantee the taxpayer the right to cut these expenses from his tax refunds. In order to deduct any kind of expense from another person, it must be included as a dependent in the declaration and there are criteria for this. Children of divorced parents, for example, can only be dependent on the declaration of who holds the judicial custody.
Person included in two statements at the same time
A person’s identification number cannot appear on more than one tax refund form. So if two taxpayers divide the expenses of grandparents, parents or children, the family should talk to decide which one will include the dependent in the statement.
The bottom line
If you still have doubts on the subject – which can be quite complex indeed – then make sure you contact taxreturnco.com.au for specialized help.