What Are Some of the Most Common Tax Return Mistakes?

Filing taxes can be a daunting task, especially if you're unfamiliar with the process or are filing your return for the first time. It's important to take your time and make sure that you've filled out all of the necessary information accurately, as otherwise, you may find yourself dealing with an unexpected tax bill or even a penalty. To help ensure that you don't make any costly mistakes on your next tax return, what are some of the most common errors?

Incorrect Income Reporting 

One of the most common mistakes people make when filing their taxes is reporting incorrect income. This can happen for several reasons, such as forgetting to include part-time income, not including interest from savings accounts or investments, or simply forgetting about one-off payments from freelance work. Make sure that all of your income is reported correctly before submitting your return, and remember that the ATO has several ways to cross-check income against other files.

Not Claiming All Deductions You Are Entitled To

Another mistake that taxpayers often make is not claiming all of the deductions they are entitled to. Depending on your situation, several deductions may be available, such as work-related expenses, medical costs, charitable donations and more. Therefore, it's important to carefully read through all of these options and determine which ones apply to you. Not claiming these deductions could cost you in the long run.

Failing to Include Tax File Numbers

Believe it or not, one of the biggest mistakes that people make is failing to include their tax file number (TFN). It doesn't matter if it's online or via paper — if you don't include it in your return, the document won't be processed. Make sure that this critical piece of information is correct and up-to-date when filing your return so that everything runs smoothly.

The Importance of Accuracy

Taxes can seem overwhelming, but with the right guidance and a few extra precautions, they don't have to be. By taking some time to familiarize yourself with what constitutes an acceptable deduction and ensuring accuracy in reporting income and TFNs, you will save valuable time (and money).

Remember — when in doubt always consult a qualified tax accountant. They'll be able to answer all of your questions or concerns before the deadline arrives. They might even find some deductions that you were unaware of, which could reduce your overall obligations and keep some more money in your bank account.

To avoid making mistakes, contact a tax accountant.