Some Overlooked Tax Deductions that You can Claim

1. Some Overlooked Tax Deductions that You can Some Overlooked Tax Deductions that You can Claim Claim Taxpayers are well-aware of some common tax deductions, however, there are some deductions that are often overlooked. Know about these deductions and boost your tax refund to get maximum benefit. Claim vehicle expenses You use your vehicle or car for various purposes, but mainly for personal reasons. However, if you are required to use your personal car for professional or work-related purposes, you can claim tax deductions. But, using the car for driving to and from work doesn't count into the deduction. You must keep track of the use of your vehicle for both personal and professional purposes. Moreover, you need to be careful and make sure you don't mix them. Count the maintenance, gas, parking, and tolls while claiming the tax deduction. Furthermore, you can also use the IRS standard mileage rate. However, to claim this deduction, you have to be the owner of the car and your travel should be part of your working day.

2. Claim charitable gifts Do you know that you can claim deductions on money or goods given to charitable organizations? Yes, donations made to qualified charities are tax-deductible expenses that can lower your tax bill. It is a great way to boost your tax refund while contributing to a worthy cause. However, if you want to claim the deduction, then make sure to choose a charity which is registered by the ATO as a "Deductible Gift Recipient organisation”. Not only monetary but out of pocket expenses for charitable work also qualify for tax deductions. So, keep the records of the charitable donations that you are making and get the tax benefit. Claim a mobile phone tax deduction Mobile phones are private possessions that are widely used for various purpose. If you are using your mobile phone for work purpose, then you may claim the cost of making work calls as a tax deduction. You can use your personal mobile phones to call clients or staff members to reduce your tax bills. However, always remember that you can claim only the cost of your work-related cost and not the whole phone bill. You are eligible to claim only a business use percentage of your mobile phone as a deduction. ATO needs you to make a record of all your phone usage for a minimum of 4 weeks. Also, note down the time that you spent on your mobile phone for personal and work use.

3. Claim home office expenses If you often work from home and use your personal computer for work purposes, then you may claim the cost of using your personal computer as a tax deduction. ATO lets the professionals who work from home occasionally to claim part of their home office expenses. In fact, if you are self-employed and work entirely from home, then you are eligible to claim the occupancy cost of your home office space as a deduction. These expenses may comprise equipment, furniture, software, and electricity. Conclusion So, these are some common tax deductions that you shouldn't ignore. To know more about such deductions and get the right piece of advice to manage your tax return in Sydney effectively, you can hire a professional tax agent. An experienced tax agent will know how to minimize your tax bill and maximize productivity.