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How to Prepare Early for Tax Time

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3 years ago

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Tax Time

Are you ready for tax time? Are you completely prepared? I’m here to tell you you’re probably not. You’ve got just a few short weeks left to get your financial ducks in a row and file your free personal tax return with all its statuses, deductions, and percentages answered correctly. So, what can you do to prepare early for tax time?

Get organized

Tax time is a great opportunity for you or your business to get a refund. To make the most of tax time, you need to prepare early and organize.

Start with the basics: collect the forms and paperwork that outline your income (such as payslips), expenses (like receipts), and other information (such as your tax file number).

If you’re an employee, ask your employer if they can provide you with an electronic PAYG summary. If they can’t, ask them to give you one that shows all of your income and tax withheld during the financial year.

If you’re self-employed, consider using small business accounting software to keep track of your tax records throughout the year. This will help you get a clearer picture of where your business stands financially at any given point in time.

Use tax software

Deductions and credits available to taxpayers can be difficult to keep track of from year to year. Using tax software helps taxpayers stay organized and prepare for tax time.

Several tax software options are available for taxpayers that can help them file their taxes accurately. While it may seem like a burden to start working on your taxes before the new year, it’s one way to get ahead of the game when tax season arrives.

Taxpayers and practitioners should be aware that there are always changes made to the tax law, and it’s best for them to check in often with the ATO website or a trusted practitioner for updates.

Find out if you qualify for tax credits and deductions

When you prepare early for tax time, you can leave the stress behind and get your taxes correctly.

If you have many deductions to claim, it’s best to be prepared early. Finding those extra deductions will help lower the amount of taxes you owe — and possibly increase your refund.

Prepare early by finding all of your tax documents as soon as possible to determine if any income sources need to be reported. Additionally, look for receipts or other forms of documentation for expenses that can get you a larger deduction — such as charitable donations, moving expenses, and home office expenses. If possible, keep these in a folder and make sure they’re organized alphabetically or by category so that you can find them easily at a later date.

Get help from professionals

You can prepare early for tax time in Australia. You will feel less stressed and more confident about your financial situation if you get professional help.

Tax time is a busy period for the Australian Taxation Office, with over 20 million tax returns being processed. People are encouraged to prepare early for tax time to make this process easier.

When preparing early for tax time in Australia, it’s best to get professional help. There are many different ways accountants and financial advisors can help you prepare for tax time in Australia.

Tax planning – when you engage a professional accountant or financial advisor to plan your taxes, you will be able to make the most of deductions and concessions that apply to your situation. This will ensure that your tax return is completed correctly and accurately so that you don’t have any issues with the ATO.

Complete your return – a qualified financial advisor or accountant can complete your return on your behalf. They will ensure that all available deductions are claimed, that the information provided is accurate, and that there are no errors on your return. This will mean that you will receive the correct amount of refund (or owe the correct amount).

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