Did you know you can claim deductions when you file a tax return? Yes, claim some expenses as tax deductions to reduce your taxable income. And work-related deductions are no exceptions. There are different types of deductions you can claim, but you must meet some guidelines listed by ATO. According to a leading tax law firm in Perth, you claim tax deductions if,
-You have a record to prove it
-You have spent the money by yourself
-The expense is related to job and more
Here we’ve listed a few tax deductions you can claim related to your work or income.
In the past one and half years, many of us are working from home due to the COVID-19 crisis. This results in some home office expenses that may be eligible for tax deductions. Some of the costs that you can claim include phone and internet expenses, stationery, and home office equipment. The leading tax lawyer in Perth also says you can claim the running costs of electricals related to your office work.
Vehicle and Travel Expenses
If you are using your private car for work-related activities, the travel expense incurred can be related to business costs. For instance, you are travelling to attend multiple workplaces, car expenses to perform your work duties, accommodation costs when you travel for work, and more. You can claim these deductions in a number of ways. But, remember, to claim these deductions, you must own the car and have records for each expense. The best approach is to maintain a logbook to record all business journeys made in the car over 12 weeks. You can claim tax deductions for all business travels, but it doesn’t include travelling to and from work daily.
At work, if you are asked to wear work-specific clothing, protective clothing, or work uniforms, you can claim these costs as work-related expenses. You cannot claim for non-compulsory work uniforms. To make this claim, you must conform to the employer’s dress code policy and have written evidence of these costs.
You can claim a tax deduction if you are using your personal phone for work purposes. When you are using your own phone for both work and private use, you should calculate the percentage that relates to your work usage. You can calculate this expense over 4 weeks.
Magazine Subscriptions, Association Memberships, and More
Are you a member of an association as a part of your profession? Then you are eligible for the tax deduction for the subscriptions. Any subscriptions and fees related to your line of work are deductible.
Gifts and Donations
You can claim a tax deduction for the gift or donation you gave to an organisation. But there are specific rules that apply. Talk to your taxation lawyer in Perth to know more.
The author of this article is a tax lawyer associated with a leading tax law firm in Perth. In this article, he lists a few work-related tax deductions you can claim for when filing tax returns. Visit https://www.munrodoig.com.au/ for more information.