Hi all
Tax time. Am I better off doing free e-tax or going thru a proper accountant to get the max $$ back? I've looked around and accountants are charging $160 for a BASIC tax return.
TIA.
Using E-Tax or Accountant?
Jay408 on 08/08/2019 - 23:03
Comments
Thx reply, tax should be straight forward. Just normal employee stuff. Hard to justify $160 on an accountant for a simple tax return. Last time he spent 15 mins and charged that for simple return.
Yeah, if you've only got one income, and minimal deductions, you can probably just do it yourself. Most things should be prefilled by now, just make sure you check each section.
Saw that it was all prefilled and my situation is simple employee. Not many work expenses or anything…
Where to get accountant who doesn't charge close to $200 for simple return 😂
@Jay408: Yeah. That's why no matter how difficult my tax return gets, I'd rather just do it myself. Thankfully, mine's pretty simple and is likely to stay that way.
@DoaAn: Same here…just got thinking about using accountant cuz someone told me he or she can get way much more back 4 u…but dunno how as basic employee.
@Jay408: They might be able to get more back for people with multiple incomes (especially crypto or shares) or large amounts of deductions, but really, if you just read through ATO site to make sure you're aware of what deductions you can and can't claim, there's nothing an accountant could do that you can't.
There shouldn't be any difference in return between DIY and using an accountant unless you're either not entering some info when DIYing or the accountant is claiming dodgy items which could come back and bite you if you get selected for an audit.
Personally I use an accountant as I use that time to ask questions on what I can do differently to minimise my tax, what can I adjust that I'm already doing, can I claim X next year that I'm thinking of buying/doing etc. You can generally also claim the accountants fees back the next year as well so IMO, if you can afford to not have that money for a year, it can be worth it.
This^.
If your accountant is worth his/her salt, they would help in making sure that you plan ahead.
As for the fees, please remember that when you claim the accountant fees back the following year, you're only getting back the marginal tax rate you're on.
So, if you're in the 37% tax bracket + 2% Medicare levy, you will only get back $78 from the $200 you're spending on accounting fees.
Last time our accountant took 15 mins for straightforward returns and hello about $200 later they were done. We would have entered same info. Cost doesn't seem justified. Do u get the full fee back?
No, it's only a deduction which means you don't pay tax on that amount.
If you used an accountant you can claim their fee from the previous year before and get it back
Get it a portion back based on your marginal tax rate.
Most people will think it as "Free service". Not!!
Yep. Seems a common misconception is that people buy employment related stuff (ie. tax deductible) thinking they'll get the full amount back.
If it's something they need than sure, still get it. But they still need to be mindful of the price they pay.
If you used an accountant you can claim their fee from the previous year before and get it back
You get the "tax" portion of the fee back, not the full fee.
How much is that like on $200 fee?
OP, if you use e-Tax use the tax agents previous years return as a guide.
👍
Depends entirely on how complicated your situation is. You could try doing it yourself on my.gov.au and see what it comes up with. You get an estimate before you submit. If you think that it seems too low a return or too high a debt, find an accountant.