Talking Cents

Common Tax Return Myths That You Shouldn't Believe

It is often hard nowadays to distinguish fact from fiction. This is more true about tax return myths than other online data. While filing for taxes is daunting for many people, it becomes even more confusing when you are bombarded with unsolicited advice. The tax filing season sees a rise in many myths coming up, primarily through social media. A lot of these myths are either outdated or completely untrue.

To save you from embarrassment and trouble with the ATO, here is a list of common tax return myths you must not believe.

1. Travelling for work entitles you to Tax returns

Travelling to the office for work does not fetch you a tax return. You can claim a tax if you carry some heavy machinery related to your work and the office has no space to keep it.

2. Double Dipping with WFH works

The new work-from-home model due to covid made the government take steps to put Australian citizens at ease. They made specific considerations for the time being, which they don’t anymore. That is where this myth originated. So let’s bring clarity to the issue. You cannot claim the ATO shortcut rate for Covid and simultaneously claim office equipment at home for your tax returns. This happens far too often and is called double dipping. Either claim ATO short rate for Covid or the actual cost method combined with home office equipment.

3. Your Bank Details will Update Automatically

One of the most critical points in the list, your bank details have to be updated when filing your tax returns. If you don’t, you will lose your tax returns by not getting any. Many people think that since the government has all the bank details, they update them on their own. So many people lose their tax return money because of this silly mistake.

4. You Don’t Need receipts to get tax returns or deductions

To claim tax returns, you need more than bank statements. The person must produce a receipt supporting their claim for the business expense. The ATO can audit you anytime, and having these receipts filed systematically can save you a lot of stress and worry.

Consider M.A.S Partners for Small Business Accounting

Filing tax returns can be complicated if accounting is not your day job. Collaborating with accountants who have years of experience is what you might need. We provide specialised aid for your small business accounting requirements in Sydney.

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