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SOME COMMON TAX MISTAKES

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23
May

When you lodge tax return, you can make quite a number of mistakes, but there are some very common mistakes that many people make while lodging tax returns. Described below are some of the common mistakes that people make while lodging tax return.

  • Omit income- One most common mistake is to omit any income in your tax file. Different income areas, especially overseas income and capital gains are the most common income of all that are overlooked while calculating tax return.
  • Forgetting deductions- Many people do not realize some deductions that they could claim and therefore, make the mistake of not claiming the deductions. You need to have a clear idea about the deductions so that you can claim deductions when applicable.
  • Claiming deductions incorrectly- Many people misunderstand in which situation which deduction is applicable, and therefore, they claim deductions for expenses, which are not deductable. For this reason, it’s very important for an individual to have the know-how about the deductions and their applications.  
  • Not having evidence for claiming deductions- You need to have necessary evidence/receipts to claim your deductions, which many people forget and don’t maintain. It’s very important to keep evidence/receipts to claim deductions.
  • Not completing the tax form- Many people make the mistake of not completing the tax form, people often don’t include the date of birth, signature, or even the tax file number, which creates a problem in the lodgement of the tax return.  
  • Car log book- While making a claim for motor vehicle's expenses under the log book method many people does not maintain it in the correct method. It must be for a continuous 12-week period and prepared within the last five years.

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