Tax Time Tips

Tax time.  Barely a month has passed since the official end of the last financial year, and many of you still haven’t got around to filing your tax return, and understandably. It can be confusing at best and time consuming at worst. Try and take the following points into account (pardon the pun) if you’re still deciding to use an accountant or not.

Income Streams

How many income streams do you have?  Tax returns get increasingly complicated to lodge without an accountant’s services when you have more than one income stream.  Running your own business, owning investment properties, passive income from shares and other investments complicates your tax position, as opposed to working and earning money from a PAYG employer.  The more complicated your financial position, the more difficult it becomes to independently lodge your own tax return.

Time Efficiency

Even if your income stream is relatively straightforward, it’s worth considering how much time you realistically have (and need), to set aside to do your tax return correctly.  In fact, your lack of time may very well be the reason you’re reading this blog and haven’t yet filed your tax as yet….

Tax Literacy

Are you on top of all the different tax codes?  Do you know what a tax right off is?  Do you know how to claim a loss if you need to?   Do you even know if you’re eligible to claim a loss?  The list goes on….Keep in mind your level of tax literacy will have a significant impact on the time involved to do your taxes independently.

Not All Accountants Are Created Equally

So you might be thinking it’s a good idea to save yourself a few bucks and go with an online accounting service that’s promising to do your taxes for a $100 special, but think about how much time and effort a discounted service will get you versus spending a little more.  Sure, you could save yourself an extra $100 in the short term, but you could lose out when it comes to your tax refund.

For further assistance with lodging your tax returns, please visit  https://www.ato.gov.au/individuals/Your-tax-return/In-detail/Tax-essentials.

Written by Jason Pestano