Tax Return - Deductions

JSki on 20/10/2022 - 09:55

Howdy Crew,

Quick one for all you people who do your own taxes, an accountant, or are pretty savvy with EOFY.

I do my own taxes, as generally they are pretty simple, and usually would check ahead of July whether I could make any changes before the end of year. I was pretty silly this year, and thought it would be fine, but after doing the full audit have found I probably am looking at a $700-800 tax bill, and before I head to an accountant for further advice (but also will be effectively free if I am having to already put up a bill) if I thought I would put it out here to see if anyone had any advice or thoughts?

Some key info below:

-I'm a PAYG full time worker, and work probably about 70-80% at home.
-This year I've been granted Stock options from work, hence the bill.
-Also generated income from Shares (Capital Gain & Dividend/Reinvestment), Crypto (All sorted through Koinly), Interest.

Deductions
-Working from home flat 52c method, plus Mobile and Internet at correct propotions for work (both roughly +60-70%) as I have kept a logbook for everything. This was the most effective way of calculating vs bottom up & 80c per hour Covid special.
-Small work travel expenses that were not reimbursed.
-Small donations.

Effectively after researching a bit more if I had my time again I think the best option would have been to make some post tax super contributions to net out, but I dont think I can make that now after the fact.. So any other thoughts before I go ringing around to accountants?

Financial

Comments

  • bemybubble on 20/10/2022 - 10:14

    Any PD or educational expenses?

    PPE OR RATs?

    • JSki on 20/10/2022 - 10:19

      Nah no personally paid PD or Education.

      No PPE, occasional RATs that I purchased online. Would they all be classified as Work expenses? As they were used to test if I was okay to go into office.

      • Unorthodox on 20/10/2022 - 11:01

        Yes, any RATs or PPE incl hand sanitiser, masks etc are deductible if required to perform your work duties.
        E.g At my workplace, during a period if someone were to test positive on our floor, we would need to take RATs for 5 days before returning.

        Those would be deductible

  • MS Paint on 20/10/2022 - 10:16
    +2

    (but also will be effectively free if I am having to already put up a bill)

    Why?

    • JSki on 20/10/2022 - 10:21
      +1

      Wouldn't pay it if I knew it didnt stack up..

  • netjock on 20/10/2022 - 10:16
    -1

    I probably am looking at a $700-800 tax bill

    Depending on your tax rate you're probably wasting your time trying to dig.

    I think the best option would have been to make some post tax super contributions to net out

    Post tax contribution is after tax so it isn't a tax deduction. The contribution will sit in your super as non concessional (non taxed because you already paid tax on it). That is far as I understand it.

    If you are paying $800 tax and assume you are on say 40% tax bracket you'll need to salary sacrifice $2k (and pay tax of 15% on that sacrificed amount).

    • Zeph101 on 20/10/2022 - 21:10

      Your correct in that after tax will sit in super as non concessional contributions (tax free).

      You can however do an intent to claim a tax deduction form (either ATO template or your SF specific) and lodge with your super fund.

      You will get a letter and the ATO will be notified and it will show up on your ATO prefill report and be allowed to then claim the deduction on your return.

  • djsweet on 20/10/2022 - 10:17
    +7

    The accountant is only going to be “effectively free” if they can save you more on your tax bill than their fee (after tax deduction). Not saying you are one of these people, but I seem to frequently come across the misconception that the “cost of managing your tax affairs” being deductible somehow makes it free.

    Anyway if you have received stock from your company it’s no wonder you have a tax bill. It’s quite common in the tech sector, and I’m not sure there is a whole lot an accountant can do about that.

    • JSki on 20/10/2022 - 10:23

      Yep thats the main change for this year. Agree in a pickle.

    • foxmulder on 20/10/2022 - 10:38
      +2

      The cost of accountant is more like 'discounted' rather than free.

  • Unorthodox on 20/10/2022 - 11:06
    +1

    Depending on your marginal tax rate, that accountant visit might be beneficial, especially as you could use that knowledge going forward.

    Just from the info given,
    - RAT tests as mentioned above in my prev comment
    - Expenses related to your tax record keeping, e.g log book, record books, MS Office proportion/cloud storage for receipts,
    - Expenses related to your shares/dividend income - any record keeping, subscriptions, market insights etc, reports

    Best to get an accountant to ask the probing questions.

  • whatwasherproblem on 20/10/2022 - 14:53
    +1

    after doing the full audit have found I probably am looking at a $700-800 tax bill, and before I head to an accountant for further advice (but also will be effectively free if I am having to already put up a bill)

    Definitely check with the accountant and not just us randos on OzB.

    However also, and at the risk of sounding like a glowie: are you sure that the tax bill isn't actually accurate? Correctly me if I'm wrong, but the impression I got reading your OP was that you thought it was somehow a travesty that you owe money to the ATO. You're not always going to get a positive tax return. (And I don't even know why you'd want that anyway. A tax return 'bonus' isn't good, it's the ATO admitting that they took way too much money from you and they're super sowee so they're giving it back now, after up to a year of holding it in inaccessible, interest-free stasis. And on the opposite end, owing the ATO money means that you've had their money the entire time, and you've been able to use their money to bolster your investments, earn yourself interest, etc.)

  • CodeXD on 20/10/2022 - 18:22

    Was 'Fixed rate method' available for 2021-22? ATO website only lists it as an option for 2022-23. It specifically says 'From 1 July 2022'.

    • ds311 on 24/10/2022 - 22:46

      Yes the fixed rate method has been around and isn't going anywhere not sure where you're reading that. There's also the shortcut 80cent method which was introduced in 1 March 2020 because of COVID and ended 30 June 2022.

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