If you are preparing to file your first tax return, we understand how confused and stressed you must be feeling. If you’re a student fresh out of university, or if you’ve just gotten a new job, there will be certain changes regarding your tax returns.
Did you know that in 2019, nearly 9.8 million people filed their tax returns through an agent? If you need a few tips related to how to file your first tax return, we are here to help!
1. Do you need to lodge a tax return?
First and foremost, you first have to know whether you need to file a tax return at all or not. If you fall under the following categories, you’ll be required to file a tax return:
- A resident individual whose total assessable income is above the $18,200 tax-free threshold for that particular year.
- Any individual who has their own business, irrespective of any profit or loss occurring there.
- A resident taxpayer who earns less than $18,200 and has their tax withheld from that income.
- A resident minor (under 18 years of age as of 30th June) who has an income from dividends greater than $416, as well as franking credit cards that have been attached.
2. Tax-free threshold
If you see that you need to pay your first tax, you should now know about the tax-free threshold. Being a resident of Australia, the first $18,200 that you earn in a particular year has zero taxes.
This is known as the tax-free threshold. You can even use this income to reduce your future taxes that will be withheld from your income that year.
When you are employed in a new organization, your superior will give you a tax file number declaration. If, however, you have a business of your own, you can avail of the tax-free benefits on your income.
The deadline for filing your tax returns is any date between the 1st of July and the 31st of October every year.
If you are unable to file the tax returns within this time, you can extend the deadline by writing to the commissioner beforehand, that is, before 31st October. There are many expert tax organizations that take care of your tax returns in case you are late in lodging it.
For example, Taxopia Tax Online will help you to lodge all your tax returns smoothly before the deadline and also help you extend the date if you’re late. With prices as low as $180, you won’t find another online tax solution as great as Taxopia.
4. Evidence needed
If you wish to claim more than $300 for work expenses, you will have to write a written request to prove the entire claim, not just the amount over $300. Documentary evidence is generally kept for 5 years from the date on which you have lodged the tax return.
But in some cases, this duration may be longer. Always remember to keep your receipts, invoices, and other necessary documents safe so that you can access them easily.
The documents must clearly show the date of purchase, the item purchased, the names of suppliers, etc. Some of the required documents may be:
- Summaries of payments from vendors
- Receipts for any deductions
- Bank and credit card statements
- Documents from your financial organizations that show proof of your interest rates
5. How does the return process happen?
Institutions like Taxopia prepare hundreds and thousands of tax returns every year. Once you have booked an appointment with their consultants, you can discuss at length your income, deductions, and any kind of offsets with them.
After your tax return is ready, your payment options will be asked, and then a registered Tax Agent will recheck everything to make sure all is in order.
After submitting all your requests, you will receive a notification. In case you hit a snag and don’t know what to do, simply ask one of the Taxopia experts for guidance.
Over to you…
Here are the five important tips for filing your first-ever tax return. Even though the process might seem daunting, it’s actually pretty simple if you get in touch with professionals like Taxopia. They have various prices for different kinds of tax returns.
So depending on your needs, you can pay a nominal membership fee and avail of all their benefits. Since it’s your first time, it’s always better to consult professionals for help.