Can I fix an error in my tax return after it has been submitted?

MissLouise on 20/07/2018 - 21:59

Hello,

I saw the accountant this afternoon to do my tax return. It is a pretty straightforward return with only a few work related expenses claimed. The biggest claim I made was for a laptop I purchased so I can work at home. Even though we already have a computer at home, my workplace uses Mac so I purchased a Mac in December (thanks OZB!) and have used it mostly for work stuff since. I had a few other tech items which were itemised on my return, but the laptop is completely missing! We did speak about it as the agent asked me how much I use the laptop for work… I said about 80%. I am not sure whether she decided to leave it out without telling me, or whether it was left out by mistake.

She gave me a print out of my paperwork and it's only just now that I have had a look through and realised it's missing!

I have already paid them and she did say she would submit the claim to the ATO this afternoon.

Is it too late for this to be fixed and for the laptop to be included in my claim?

I have sent an email to the agency but they aren't open until Monday, so I'm hoping some tax savvy Ozbargainer will be able to answer this for me!

Many thanks in advance!

Financial

Comments

  • oscargamer on 20/07/2018 - 22:03
    +2

    What did your accountant say day when you asked her?
    Why did she miss such a simple thing?
    Why are you paying for her professionalism if she is so unprofessional?

    • MissLouise on 21/07/2018 - 00:24

      Not sure what happened.. we talked about it so I expected she had included it in my claim. It was only when I got home that I realised it wasn't included! This is the first time I have been to this accountant, I have found it hard to find a good accountant since my long term accountant retired a few years back. This lady had good reviews and she was really lovely… it must have been a mistake… luckily I picked up on it and it can be fixed! Will see how she responds before deciding whether to go back there again…

  • mbck on 20/07/2018 - 22:05
    +4

    Google is your friend
    https://www.ato.gov.au/general/correct-a-mistake-or-amend-a-return/correct-(amend)-an-income-tax-return/

    • mbck on 20/07/2018 - 23:00
      +1

      Hey op, are you sure your accountant hasn't deduct it?it won't be the 80pc amount, it'll be the max for the year. Not sure what the figure is though

      • MissLouise on 21/07/2018 - 00:34

        Thanks mbck. I think you are talking about depreciation? I forgot about depreciation, we didn't talk about it today so I think there has been an oversight!

  • smuggler on 20/07/2018 - 22:05
    +1

    You can amend your tax return through mygov.

    If the item costs less than $300, you can claim an immediate deduction for the full cost. If the item costs more than $300, you can claim a deduction each year for the decline in value (depreciation). For laptops, this is typically three years and for desktops, typically four years.
    Again, you’ll need to keep a diary so you can demonstrate the study-related portion of your device.

  • daalinz on 20/07/2018 - 22:10
    +1

    Accountant should fix mistake

  • Godric on 20/07/2018 - 22:19
    +3

    Please take a ticket while you wait for your next Ozbargain consultant, thank you

  • zonra on 20/07/2018 - 22:31
    +1

    A couple of years ago I could make amendment to my tax return after lodgement (through etax/myGov).
    I’d assume your agent should be able to too.

  • lubos on 20/07/2018 - 22:50
    +2

    You probably can't deduct full cost of the laptop for the last financial year. It would be depreciated. In that case, it would be included elsewhere. Not on your itemized list of deductions where you are looking. Anyway, best to ask them to clarify.

    As others have said, they can easily amend your tax return. Doesn't matter whether they lodged it or not. You can amend even after receiving your tax refund. So don't worry and enjoy your weekend.

    • MissLouise on 21/07/2018 - 00:38

      Thank you lubos. I completely forgot about depreciation! (Don't usually have these types of expenses to claim). Glad to know it can be amended, thanks for putting my mind at ease!

  • jug123 on 20/07/2018 - 23:38
    +1

    you can make an amendment up to 2 yrs after the yr it shouldved been claimed in. Unless you really need the small amt you'll get back, remembering you cant write it all off in one yr, put it in next yrs tax

    • MissLouise on 21/07/2018 - 00:39

      thank you jug!

    • sssx on 21/07/2018 - 09:56

      I'm not sure what jug123 means by 'put it in next yrs tax', but I don't think you can claim this years depreciation in next years return. Keep things correct, amend the figures in to the correct return.

  • MissLouise on 21/07/2018 - 00:19
    +1

    Thanks everyone! It is a relief to know I can make the change if need be. I forgot about depreciation in the future too! I know it won't make a huge difference to my return, but I'd like to get a little bit back at least!

    Have a lovely weekend :)

    • sssx on 21/07/2018 - 10:17
      +1

      I'd suggest finding a new accountant, or just doing your tax return yourself if you have fairly simple affairs. It's not difficult with the mytax website. Investment income and depreciation does get a bit more complex though.

      As has been mentioned, you can amend your tax return for up to 2 years. There will be interest due, in either direction, if you wait. E.g. if you paid more tax than you should've, but it's only 'discovered' 1.5 years later when an amendment is done, the ATO will pay you interest on the difference. If the amendment means you should've paid more tax, you'll be charged interest on the difference.

      Best to just do an amendment as soon as you're aware there's a problem, and keep things as correct as you can to the best of your knowledge. Amendment can be done by either you or your agent.

      FYI to anyone:
      1. Your agent should NOT be logging in to YOUR myGov account to lodge your tax return for you. Your login details are private, you should NOT share them with anyone, even your tax agent. They can use their own details.
      2. You can't deduct this years tax agent fee from this years tax return; you should deduct the tax agent fee from the next years tax return.

  • chumlee on 21/07/2018 - 07:38
    +2

    The laptop is not an instant write off. It can only be depreciated over time so you are not going to get 80% of it back on your return. Have a good look through your return again.

    • Worf on 21/07/2018 - 08:32

      I’m curious does this reduce your taxable income (getting a discounted computer) or do you get a free computer.

      Tax refund: if the computer costs $2000 and your in the 37c tax bracket, and you’re using 80% for business use. ($2000 * 0.8 * 0.37) = $592. Meaning you had to pay $1408 of your own dollars to buy the machine. Great discount if you’re in the market for a new computer, but kind of sucky if you didn’t need it in the first place. OP said he already has a computer at home and needed an OS X computer for work.

      • SBOB on 21/07/2018 - 08:56

        Yeah, could have run osx in a vm as a cheap option ;)

      • sssx on 21/07/2018 - 10:10

        It's a deduction, so it reduces your taxable income, which reduces your tax bill. It won't be a free computer, just discounted. In essence, you're not paying tax on the income you had to earn and then spend on the item.

        You've got the right idea on the calculation, but need to depreciate it over the life of the item (3-4 years for a laptop, I forget, may be mentioned above).

        I can't recall the specifics but it may also reduce your taxable income for Medicare Levy purposes; if so that means another 2% on top of your tax bracket % (e.g. 37% + 2%).

        But keep in mind, you have to be able to prove you need it for a legitimately tax deductible reason, e.g. x% for work/approved study.

        There's potential to find a sale that shows the tax invoice at full price, get cashback, claim TRS, and deduct the depreciation from your taxable income. There may be other things to throw in, maybe pay with discounted gift cards, or get cashback or points from from credit cards, etc.

      • chumlee on 21/07/2018 - 10:37

        Unless you are a small business with instant asset write off you can only depreciate the computer of it's lifetime. Not sure what the ATO calculation is but on $2000 you probably looking at $300 or so benefit

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