Top 10 Tax Advice For Families
Being a financially screwed parent is highly important when you have to manage household finances and the overseeing the family budget. While it could be easy to overlook the receipts come tax return time – instead of piling them up and crushing the numbers, Allan Mason chartered accountant and money author, says tax returns are the opportunities for families to make a financial boost. Here are some of his top ten tips to really maximize the refund.
1) Really look at your medical costs
For all the out-of-pocket medical tolls above $2000, you’re entitled to up to 20% of the excess.And when the family is large this is not so hard to achieve, particularly if you have safely kept all those chemist receipts.
2) Know your family tax benefits
For Family Tax Benefits Part 1 closely observe the income thresholds. For Part 1 it says that when your income exceeds above $67,398. A number of thresholds apply depending upon your family member and their ages. So check the rates at the Centrelink as they are fit to you. It can also mean looking for those extra few deductions only if you are close to the given limit.
3) Claim the 30% child care tax rebate
Now this one covers up to 30% of your out-of the pocket childcare costs paid to any approved child care center. It also includes a refund of up to $4000 each child every year. These overhead expenses are the amounts paid which aren’t covered by any Centrelink Child Care Benefits. A few eligibility criteria’s do apply, however, make sure if you are designated to this.
4) Take advantage of the superannuation bumper
Don’t forget the authorities co-contribution to the superannuation. If your income is less than $31,920 and you give $1000, the authority also contributes to you up to a maximum of $1000. But, this is subject to change since income threshold applies which shall reduce the government’s contribution amount.
5) Be smart with healthcare
If you and your spouse’s income exceeds the cost of threshold you will be up for the Medicare levy surcharge. If you think you’re exceeding the limit go for private health insurance.
6) Claim spouse rebates
Never be fooled into thinking as its too hard, you won’t bother trying to demand spouse rebates. It will be worth the extra time to do deep research whether you are entitled to the claim. Have a read of the Taxation Office’s reference to tax for the families for more detailed information on this and other related family taxation topics.
7) Take advantage of education refunds
The Education Tax Refund lets you claim up to 50% of some of your kid’s education expense. You can also get back up to $375 for every primary school child and, min $750 for every secondary school child. Eligible expenses are mostly computer related education costs, however not the school fees, uniforms and excursion costs.
8) Be rent savvy
If you have a rental property, do not forget that in a lot of cases devaluation on the building can be claimed. This one is often missed. You can even pay the interest in advance on your investment property in order to claim the deduction now. The same applies to repairs as well.
9) Be smart about how your investments are held
Maximize the use of tax scales to make sure that income is earned by the family member with the minimum income and all losses flow to the family member with the maximum income. Even better would be to utilize the family trust so that there are an income sharing and real asset protection.
10) Don’t forget to claim car expenses
If you’re using your car for work, maintain a log book and also keep the record all your expenses for each year. This will give you the option of choosing the best method of claiming the expenses of running your vehicle, instead of just the easiest method.
Seek a good professional advice. If you are paying a lot of tax, get the necessary help. Accountants are the people who do this every single day, while in your case, it’s just once a year exercise and perhaps each year things do change.
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