When it comes to filing personal tax returns, the objective is to get the highest possible deductions and the lowest possible taxable income. Sadly, most taxpayers are not aware of so many deductions that can be of much help to them. There are so many things that a taxpayer may not know on how to go about claiming for their taxes in Melbourne or Woolgoolga and this makes it important to seek an expert bookkeeping and payroll services provider. Below are some of the tax deductions that are usually left out by most people.

Some of the Most Common Tax Deductions

Home Office Expenses

Thanks to the new normal where working from home has become more rampant, more people are qualified to deduct home office expenses. If you have a room in your home strictly dedicated to working, then you can even claim for the expenses such as rent, electricity and depreciation of the room. The expenses that you incurred as an employee are divided into capital and revenue expenditure, and a tax advisor near you will be able to determine which of these expenses are deductible in your personal tax returns.

Work-Related Education Expenses

If you have to take courses to develop, refresh or update skills needed in your present employment, these costs should be deductible. This encompasses fees for tuition, books, and other learning materials along with travel expenses in connection to your education. However, the education expanse must be linked to the current occupation. Discussing this issue with a tax accountant in Woolgoolga can help you understand what expenses are connected with work-related education.

Union Fees and Memberships

Membership dues to a union, a professional organization, or a license fee for your line of work are deductible. These are usually expenses that are not easily considered due to their seeming insignificance but can culminate in huge sums of money over time. These are some of the expenses that can be traced throughout the year with the help of bookkeeping and payroll services that will assist in claiming during the tax return period.

Charitable Donations

The donation to the registered charitable organization can be claimed as deductions. This also involves contributions in cash as well as goods and other contributions with the fair market value. One must ensure that they preserve receipts and records of every charitable donation made. A tax advisor in Melbourne can be of great help to you in making sure that all the charitable donations that you have made in the year are properly documented and claimed for.

Medical and Dental Expenses

There are specific medical and dental expenses that are not reimbursable by insurance and are considered for deduction. This includes the costs for physicians, specialists, surgeons, and even some prescriptions. These must be more than a certain percentage of the adjusted gross income to be deductible. Therefore, a tax and accounting services provider can assist you in identifying whether your medical costs are deductible.

Investment Expenses

Business-related expenses that you have to pay in the course of managing your investments are another expense that can be deducted. This includes charges made on the investment advisors, fees charged for using safer depots, and even some of the travelling charges made on your investment. An independent tax advisor near your area can assist you in determining which of the expenses relating to investment are tax-deductible.

Income Protection Insurance

Expenses for income protection insurance are usually considered to be private, although the premiums paid for such insurance products are tax deductible. This insurance aims at covering the income that you could fail to earn if you are hindered from work by illness or injury. When communicating with your tax accountant in Woolgoolga regarding your insurance premiums you can be advised on how to properly claim this deduction and increase your personal tax returns.

Depreciation of Assets

Depreciation is allowed on items like a computer, a phone, or any other tools that you use for your job and that you bought. This way you can spread the cost of the asset over several years, and this in a way will help you minimize your taxable income in the process. Outsourced services such as bookkeeping and payroll will assist in identifying the depreciation of your assets and thus assist in the maximization of the allowed deductions.

Conclusion

It is never easy to go through the multiple tax deductions available to people, but with proper assistance, one will never miss a trick. That\'s why it is better to get expert advice from a tax consultant to increase your tax returns