Getting your receipts ready for Tax Time
Author - Marcus Davis, Tax Specialist, WHK Albury
I've had a lot of expenses this year and think I'm due for a tax refund. What records do I need to claim these expenses?
You can generally claim a tax deduction for expenses you incur to earn your income. This includes, among many things, union fees, work related magazines, tools, travel and car expenses.
To make life easier for you or your accountant come tax time, you should keep careful records of your expenses throughout the year. Generally these should be written receipts from the supplier recording when, what and how much you have paid.
A diary may be used for a number of different claims. Examples include:
- To establish the work kilometres you have travelled in order to claim car expenses
- To record the dates, places, times, activities and duration of your work related travel
- To claim laundry expenses above the $150 threshold (note: you don't need records if you claim less than $150)
- To estimate the work related use of your computer or home study or telephone
Other records that may have an indication of your expenses include your PAYG Payment Summary and your Medicare and health fund Statement of Claims. For example, some expenses, such as union fees, overtime meal allowances and donations might be recorded on your PAYG Payment Summary.
Donations over $2 to charities may also be claimable; however you must keep your receipt which records the date and amount given. This year the Tax Office will also allow you to claim up to $10 for bucket donations without having a receipt. This is the "throw your money into the bucket" donation to help flood victims or the Salvos.
After lodging your tax return, you must keep your records for a period of at least 5 years from the date you get your assessment from the Tax Office.
You should consult with your tax agent to ensure you comply with the record keeping requirements as they apply to you.
This information is general in nature and readers should seek specialist advice before making financial decisions. WHK Pty Ltd ABN 84 006 466 351
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