We Bust Common Tax Time Myths
The grape vine spreads news fast, but how do you really know if it’s true? Gossip won’t get anyone far at tax time. So let’s take a look at what we hear the latest myths are, that are travelling the grape vine. And keep yourself out of trouble this tax time.
Every year, thousands of tax returns require amendment. Some even done by taxpayers on their own returns before they are processed. Half a million individual tax returns were amended last financial year. By understanding a few of the common misconceptions, tax time may run a little smoother.
Here are some tax time myths busted:
1. Bank details don’t update themselves
Although the ATO receives information from banks, this does not mean that details of a bank account where a taxpayer wants their refund deposited also updates.
2. Do not double dip
With changes to claiming working from due to COVID-19, there is concern that taxpayers will either accidentally or deliberately claim the 80 cents per hour shortcut method as well as claiming for specific items such as laptops or desks.
If claiming under the shortcut method, individual expenses cannot be claimed for.
3. Home to work travel is not claimable
In any normal circumstances, travel costs from home to work are not generally claimable. If you have been working from home due to COVID-19, but do need to travel the office occasionally, this is still classed as a private expense.
Don’t pay a cent more than you have to
At Modoras, we have a number of tax professionals perfectly positioned to ensure you make the most of Government initiatives and tax changes this tax time. Book an appointment today.
Want to know more?
For everything tax related from tax tip videos to webinar recordings, we’ve put it all together on one page. Check it out here. This page will be regularly updated during tax time, so remember to check back in for more value-packed information.
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The Modoras team is here to help you make sense of Government schemes. Contact us on 1300 888 803 book a catch up with a Modoras professional.
IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (QLD) Pty. Ltd. ABN 81 601 145 215. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (QLD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (QLD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (QLD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (QLD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.