The 3 Biggest Mistakes You Can Make During Tax Time

The words ‘tax time’ probably don’t stir you into a thrilling frenzy. They probably put you to sleep instead.  

But unfortunately, tax time is something we all cop. Here’s how to work smarter, not harder during tax time by sidestepping three of the most common blunders. Not to mention, you’ll get more bang for your buck come refund time!! Let’s get into it. 

Not thinking about deductions
 

Claiming deductions is like adding extra chicken salt to your chippies – it makes them so much better. So many people overlook the chicken salt though… I mean… deductions. (I’m hungry, sorry).  

Think about your hospo job. Did you have to buy new trousers? Good quality shoes? An apron? These can all be claimed! Even a job that you work from home for – you can claim a percentage of your wifi, electricity, even your laptop if it’s new. If you work outside, sunnies, a hat and sunscreen can be claimed. Even books or a Medium subscription could be counted as ‘research’ depending on what your job is, so get savvy!  

Educate yourself on the deductions you may be entitled to so you could end up with a bigger refund than expected!  

Not having the paperwork

Your long list of things you plan to claim is all well and good until you need the invoices and receipts to uh… prove you bought them recently. Unfortunately, without the documentation, claiming will be a lot trickier.  

Not to mention, you may need payment summaries and bank statements. All this documentation can be overwhelming, but there’s an easy fix. Throughout the year, stay organised. It’ll only take a second to make a folder where you’ll compile everything you need come tax time. When you buy an item you can claim, drag the receipt in there straight away. Even keep a quick list on your Notes App of things you wanna claim.  

Might as well make things smoother for yourself by not missing out on eligible deductions or scramming to find your bank statements.   
 

Procrastinating and missing deadlines

Waiting until the last min to file your tax return can lead to frazzled and rushed decisions, oversights, and mistakes.  

Late lodgement can mean penalties and fines, and who wants that? In Australia, the tax year runs from July 1 to June 30, with the deadline for lodging individual tax returns typically falling on October 31. So set a date with your tax return early on. Hey, that means you get a refund sooner! 

I think there was a common theme here… If you stay a little organised, tax time won’t be boring or frazzling at all – it’ll be a quick ‘n easy process that gets you a baller refund to put towards that festival or outfit.   
 

Tax is one of those adulting things that we’re not taught a lot about in school. If you’re wanting to learn more about the adult world of money, suss out our FinLit Academy here! 

Year 13 and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.