It’s that time of year again – it’s tax time! For many people, this is an exciting time of year when they get back some of that hard-earned cash that was taken out of every pay. For others, this is just about the least fun time of year, when not only do you have to muddle your way through ATO forms but some may even end up with a tax bill.
In this article, we’ll let you know what is required in terms of information for tax return lodging. Plus, we’ll share with you our tips for preparing for your 2022 EOFY tax return so that it’s quick, easy and as profitable as possible.
WHEN CAN I LODGE MY TAX RETURN?
You have from 1 July to 31 October to lodge your tax return for the previous financial year. However, the sooner you lodge your return, the sooner you’re likely to receive any funds owed to you by the ATO.
If you’re going to use a tax accountant, it’s a good idea to schedule your appointment as soon as you can, as this will be their busiest time of year.
HOW SOON CAN I GET MY TAX RETURN?
Electronic returns are normally processed within two weeks. Paper returns take much longer. Once the ATO has processed your tax return, you’ll be issued a notice of assessment telling you if you’re entitled to a refund or whether you have a tax debt to pay.
Although your tax return is not due for a few months yet, the end of the financial year is nearing…have you captured all your work-related deductible expenses to make the most of your 2022 tax return?
The Australian Taxation Office (ATO) automatically receives information from your employers about your salary and the wages that you have been paid for the financial year. You need to declare all income from other sources on your tax return as well:
- Wages and salaries from employment.
- Pensions, annuities or government payments such as JobKeeper.
- Investment income includes interest earned and dividends paid.
- Cryptocurrency gains or losses.
- Business or hobby income.
- Foreign income.
- Crowdfunding income.
- Sharing economy income such as Uber or Airbnb.
- Any other income such as prize money, compensation or insurance payments.
Even if you have only earned a small amount from one of these sources, it still needs to be declared on the tax return. Gather all your records for anything you have earned apart from salary and wage payments from employers.
You will need:
- bank statements that show interest income;
- proof of earnings from other sources such as crowdfunding or share economy platforms;
- records of business or hobby income;
- records of government payments received;
- records from cryptocurrency wallets showing transactions and the balance of each currency on 30 June;
- and records of any other payments received from overseas sources, prize winnings, insurance or investments.
Prepare for your tax return now and you’ll make sure you maximise your allowable tax deductions this year.