A guide on common mistakes to avoid while filing individual income tax
You might be familiar with the importance of filing income tax returns. The income you have earned in a year is taxable and you should file a tax return as an individual. However, filing taxes accurately needs in-depth insights into various guidelines and tax regulations. Being a layman, you are unlikely to remember them all whilst computing your tax liability. Also, it leads to cumbersome mistakes which could result in penalties. So, it’s better to hire a personal income tax accountant Mernda to make taxation smooth and efficient. Also, you should prevent any risk of taxation pitfalls and legal consequences. Below is a handy guide by Kirpa Tax Accounting on common mistakes to avoid with individual tax preparations.
Missing the Deadline
31st October is the deadline to file your income tax with ATO. But if you miss the deadline, it can pose a risk of penalty on you. You may not be aware of the missing dates for filing your tax returns. Thus, it is important to consult experts for personal tax preparation Mernda. This is likely to benefit you since you cannot miss the last date of submission. Professionals know the exact dates and complete tax filing before to avoid costs. Also, you might not like the complicated process of taxation so it’s better to consult specialists.
Choosing Wrong Form
There are several forms relating to income tax return filing in Australia. They vary from individual taxation to small businesses, corporations, trusts, partnerships, etc. Hence, choosing the correct form is compulsory to make the process accurate. If you file the return with the wrong form, it won’t be accepted and processed by ATO. For individuals, the NAT 71050 form is necessary to fill out with all columns, income, and personal details. So, an expert personal tax advisor Mernda makes sure to use the right form. This would make your tax return accurate and accepted.
Hiding Income Sources
Not declaring your all income sources is a bigger mistake you must avoid during income tax filing. It could be your salary, business profit, gains, rental income, etc. You need to mention the income truthfully to ATO else you will be in trouble. Also, you need to file the return with the applicable slab on individuals. Mernda personal income tax rate in Australia is applicable on income more than 18200 $. Above this income, there are varying rates applicable to income classifications. So, Mernda Personal tax lawyer can check your various income sources and file returns with applicable rates.
The final words
Filing individual tax returns requires caution to follow for avoiding penalties. These are some common mistakes that are preventable with the help of experts. Hence Kirpa Tax Accounting guides you thoroughly as your personal tax consultant Mernda. We help you to navigate the proper procedure of tax filing so that you can get maximum advantage. Also, we navigate tax deductions on your income due to expenses incurred. So, get in touch with us and file accurate tax returns.