How To Prepare For Tax Season As A Beginner
The Australian Taxation Agency (ATO) has recently published a number of guidelines to help beginners manage their tax time. This can be a daunting process for new taxpayers. But with preparation, the process can be quick and easy.
Make Sure You File A Tax Return If You Need To
As a general rule, if you earned more than $18,200 in the last fiscal year. You must file your tax return by October 31, 2021.
If you have a simple tax return, you can file it in MyTax within half an hour. You will get a similar refund within a few weeks. If you have complex arrangements, you can always get help from a registered tax withholding agent.
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If you’re still not sure, the ATO has produced a tool to help you find out if you need to file a tax return. Find out more here.
Know your Tax Number (TFN).
When you apply for a tax refund, you must provide your Tax Number (TFN), which is a unique personal identifier for tax and retirement purposes. This will always be the case.
You’ll find your tax number on your superannuation statement, or you can access all your information by logging into your MyGov account.
Create a MyGov account
If you decide to file a tax return, you’ll need a MyGov account after creating one from your email address. You will need to link your account with the ATO.
The process must verify your credentials, so having a TFN, driver’s license, or Medicare card ready ensures the process is quick and easy.
Once you’ve set up your MyGov account, you’ll be able to access information such as your pension balance and loan statement, as well as HECS debts.
Submit a tax return.
Once you’ve set up your MyGov account, you’re ready to apply for your tax refund. If you are doing this procedure for the first time, take your time.
A common mistake is to leave out important information such as your income statement or your health insurance details. By the end of July, information from employers, banks, health funds, government agencies, etc. is automatically added to your tax return. If you plan to complete your tax refund by the end of July. Keep this in mind.
Another common mistake is forgetting to submit a tax invoice for something you want to claim. This includes expenses directly related to your income, for example. Work clothes and equipment, as well as receipts for charitable donations.
There are many resources for those preparing their taxes. Click here to access tips and advice from the ATO if you need further help during the tax period. Please contact our friendly team at Small Business Bookkeeping Services.