Getting Advice from Accountants for Tax Returns

Lcookietime on 31/10/2017 - 09:33

I want to ask Ozbargainer how to get advice from tax accountants. I wasn't very successful this year and probably have lost a bit of money.

My tax return was already filed by an accountant that is quite well-known in this forum (for good reasons). I was pretty confident with the amount of expertise that they displayed in the forum.

When sending them my tax details, I asked several times about other deductions that I was eligible for but didn't know. I sent them details of expenses that I knew would be eligible for deduction. My question for them was sort of "what other expenses I can use for deduction but haven't listed in the email?"

A few emails exchanged, they did not give me any advice but filed a return based only on the information that I provided. I simply thought that I probably included most of the expenses so I agreed for them to finalise the return.

A few days after my return was filed, I checked the ATO website and found out a bunch of other expenses I could have claimed. The total amount is probably a few thousands. I don't want to find out the exact number because that would only make me more upset.

This was the first time I've ever had an accountant doing tax return for me. My tax in previous years was pretty simple. Looking back at this year's experience, I would have done a better job myself and kept that fee in my pocket.

From what I've described above, what do you think I could have done differently? What sort questions should I ask to get the best out of an accountant's experience?

Note: Your advice will be very much appreciated. Just please don't be harsh on me. I'm here to learn. Thank you!

Financial

Comments

  • stratbargain on 31/10/2017 - 09:49
    +4

    Can you give an example of what you could have claimed that you didn't? and the type of work you do?

  • bigballerbrand on 31/10/2017 - 09:51
    +3

    What income bracket are you in.

    "The total amount is in the thousands"

    I used to work in the tax game, and I can tell you, if you intended to claim thousands in deductions, you would most likely get audited.

    Very rare that an individual on a normal job has thousands of deductions.

    Can you give examples of deductions that you could have claimed?

    • Telcius on 15/05/2019 - 11:44

      I wouldn't classify it as rare at all. I've seen plenty of returns have claims in the thousands, and the majority have not been subject to any audit activity. In any event if the claims are legitimate it shouldn't be a concern.

      • mskeggs on 15/05/2019 - 12:27

        I agree. It is very normal for people with an investment property, or who use a vehicle for business, or supply their own tools to have thousands in deductions every year. It is very straight forward, if you incurred the expense because you needed the item to earn the income, it is deductible. If it is an item with a fractional business use, that fraction of the expense is deductible.

        There were figures in the paper recently showing some returns with $1m+ income and $1m+ of deductions. That looks pretty fishy!

        • Telcius on 16/05/2019 - 13:02

          I'd suggest its most likely business owners or share traders operating as sole traders. Could be 1.2 million sales with 1.1 million expenses; Hard to draw a conclusion without specific details.

  • bigballerbrand on 31/10/2017 - 10:07
    +1

    Generally the way I would expect it to work would be that I would ask my accountant if I am entitled to this or this or this. Since I am the one incurring the expenses I will know what amounts I have spent.

    Unrealistic for you to expect an accountant to know what deductions you have incurred.

    Maybe in future years, keep a diary of all the expenses you incurred in the course of your employment.

    Then you take them to your accountant and they can give you advice on what is deductible and what is not.

  • [Deactivated] on 31/10/2017 - 10:12
    +4

    amend your tax return if you think your entitled to more money. Ring the accountant back up or do it yourself through mygov

    • CyberMurning on 31/10/2017 - 10:58
      +4

      to OP:
      yeah if you think you can do/fix it then just amend, very easy to amend, online as well.
      and do it yourself next year. problem solved.

      and as a thank you gesture for us who helping here, please share what are "thousands" expenses that you can claim.

      • bigballerbrand on 31/10/2017 - 11:05
        +2

        If your job is one that involved thousands of dollars in expenses that are not reimbursed by your employer, then I would suggest finding a different job.

        • CyberMurning on 31/10/2017 - 11:26
          +2

          haha so true. but still i want to know :)

        • bigballerbrand on 31/10/2017 - 11:28
          +2

          @dragonindespair:

          Lol its impossible to have deduction in this day and age. Your employer will provide you with everything you need for your job.

          Unrealistic to have "thousands" of deductions. Which is why the ATO give you a "free" $300 per person.

  • slow on 31/10/2017 - 13:14
    -1

    If you are paying the minimum to just get someone to fill in your tax return for you you are not going to get much advice.

    I have found tax accountants try to avoid giving advice anyway - they will tell you what the law is but just say you need to go to a financial advisor

    Much easier to just do you own tax return online. You have to check what they have done anyway (and find their mistakes)

  • loke on 31/10/2017 - 14:37
    -1

    The ATO website is pretty comprehensive.

    For one I'd recommend asking for and using a checklist and then to proceed to put you expenses in a spreadsheet, headings for each category D1 - work related car expenses, D2, D3, etc.

    The total amount is probably a few thousands.

    The tax accountant does not fully know your circumstances, especially more so since there's no face-to-face so IMO it is important that you are the most informed on the types of deductions you can claim.

    The ATO even has common deductions for some occupations or even a tax ruling page for the occupation - it's usually a good starting point.

    Then it's a matter of having diaries and records that support your deductions

    e.g. if you used a laptop 90-100% for work related use (diary), if you have to travel to another location during the day or to a second job that you regularly make travel between (car related work expenses using logbook or up to 5000km max @ 66c based on established pattern of use), Home office at 0.45c per hour (diary), mobile (annotated telephone bill for calls/data sessions otherwise max $50), telephone/internet (annotated telephone bill for calls/data sessions) etc, etc

  • mskeggs on 31/10/2017 - 14:38

    Some very strange comments here.
    Lots of people claim a motor vehicle for work, or tools of their trade, or telecommunications expenses, or travel expenses between various workplaces.
    It isn't strange to have larger deductions if you claim these, and if the tax agent missed them, I would be cranky too.

    • bigballerbrand on 31/10/2017 - 16:32
      -2

      It is up to me to tell my tax agent if i travel for work etc. You can't expect a tax agent to ask every single question under the sun to find out your deductions.

      When you go to the doctor, they don't check every single thing that could be wrong. You tell them which area hurts and they go from there.

      • mskeggs on 31/10/2017 - 18:15
        -1

        Are you being sarcastic?
        Do you pay somebody to do your taxes who doesn't ask you if you have deductions for motor vehicle, travel, tools etc?
        What does a tax agent do except act in your interests to ensure you claim all your valid deductions?

  • [Deactivated] on 31/10/2017 - 20:07
    -2

    My guess is if OP has thousands of missed deductions it isn’t work related but investment property related. All kinds of things can go wrong there.

    A good tax accountant will ask you all the questions about your circumstances and try to maximise your deductions, it shouldn’t be up to you to prompt them. I’d find a local one you can talk with face to face and if they agree with your assertions, ask them to request an amendment to your return.

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