Tax time. it can be filled with a lot of confusion and questions, like why you need to lodge an income tax return? What do I get out of it? Lodging an income tax return is important for several, here are some reasons why.
To comply with the law
If you earn income above a certain threshold, you are required by law to lodge an income tax return. Failing to do so may result in penalties and legal consequences.
To claim tax deductions
If you have work-related expenses or other deductions, you can claim them on your tax return and reduce your taxable income, which can lower your tax liability. For example it could be as simple as work related christmas gifts or if you are building a portfoilo of property, there are many things to claim on them.
To claim tax credits
Moreover, if you are eligible for certain tax credits, such as the earned income tax credit, child tax credit, or education tax credit, you can only claim them by filing an income tax return. Utilizing these credits you can reduce your bill further.
To receive a refund
If you overpaid your taxes during the year, you can receive a refund by filing an income tax return. Without filing a tax return, you will not receive the refund you are entitled to. Like how you can get a refund from working from home.
To maintain a record of your tax affairs
By keeping a record of your income tax returns, you can easily track your tax obligations, claim history, and other tax-related information. By recording your tax related information, you will be able to keep your finances organized.
Overall, lodging an income tax return is an important legal and financial obligation that can help you reduce your tax liability, claim tax benefits, and maintain accurate records of your tax affairs. Need help? Ask us how we can get the most out of your tax return.