Prepare now to get most from next year’s tax return

There are many ways to save a potential headache when it comes to your future tax return. By doing a little prep work now, you could get more back and make things easier on yourself.

As Toowoomba residents are completing their 2021 tax return, RACQ Bank has encouraged them to take the time now to get organised for next year’s return to save a potential headache in the future.

RACQ spokeswoman Lucinda Ross said doing a little prep work now for the financial year ahead could help reduce stress during the busy end of year period.

“While it’s fresh in your mind, find out what deductions you can claim for your occupation to ensure you’re saving all the receipts and keeping appropriate records from the very beginning,” she said.

The Australian Taxation Office website is a good place to start as it has information on deductions and other tips you may find useful.

She said it was a good time to create a place for all your paperwork.

“The ATO app lets you take a photo of your receipts to automatically upload them straight to your return. You can also keep on top of your car usage with the in-built GPS tracker,” she said.

“Other options which might work for you include creating a receipt folder in your phone or setting up a separate bank account just for tax deductible purchases. You can also schedule a monthly appointment with yourself to check you’re keeping on top of your record keeping.”

Ms Ross also reminded people that if they were planning on moving in with a new partner, they would need to declare their partner’s income on their next tax return.

The advice comes as a timely reminder for residents to look at their finances and set goals for the next 12 months.

“If you’re getting a tax refund think about how you’d like to use it. It’s a great opportunity to use the extra cash to build up your savings or get your bills under control,” Ms Ross said.

“Think about what financial goals you’d like to achieve before this time next year. Look at how much you earned, your savings, your expenses and things you might be able to cut down on.

“Break down your big financial goals into monthly, weekly and daily milestones to help you make sure you reach your targets.”