Why your tax refund could be bigger than ever this year

Tax Refund

With so many of us taking a financial hit from COVID-19, there’s never been a more important time to get your taxes right.

Tax time 2020 is looming. Here are some things to keep in mind to get the best outcome from this year’s return.

  • If you lost your job or had your hours reduced, it’s possible that your employer will have over-deducted tax earlier in the year in relation to your wage or salary. That could mean you’re entitled to a bigger refund than normal.
  • If you received the $1500 per fortnight JobKeeper payments from your employer, or through your business, this is included in your taxable income for the year and will need to be added to your return.
  • You may be entitled to the low and middle income tax offset if your taxable income is below $126,000. The amount you receive will depend on your circumstances, such as your income and how much tax you have paid through the year.

Most employers are no longer obliged to provide you with a payment summary. Instead, they report your year-end details directly to the ATO.

To obtain the equivalent of a payment summary (now called an “income statement”), talk to a tax agent who can download the information for you direct from the ATO when you complete this year’s tax return, or you can obtain it yourself via myGov.

There’s never been a better time to speak to one of our experienced accountants. We’re up to date on all accounting, business and tax-related matters, and can give advice to help you properly understand all ATO requirements. We’ll ensure that we claim ALL allowable deductions to make sure you meet the ATO guidelines AND get the maximum possible benefits on your tax return.

Source: https://www.moneymag.com.au/coronavirus-tax-refund-bigger-than-ever

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