Surprising Things You Can Claim At Tax Time

Do you anticipate receiving a tax refund for the current year? If this is the case, you might be asking how you can put that money to good use. In spite of the fact that the majority of people imagine using their tax refund towards paying off debt or putting money away for the future, you can really deduct a variety of unexpected expenses on your taxes. Continue reading to learn more about the one-of-a-kind deductions and credits that taxpayers can take advantage of this year, covering everything from home improvements to veterinary bills.

If you take advantage of these tax incentives, it is possible that you will be able to lower your taxable income and receive even more of the money that you have worked so hard to achieve. Don't put it off any longer; get started on your tax return preparation right away and find out how much money you could save.

Did you know that you can claim a lot of things on your taxes, even if you don't think those goods are tax-deductible? If you didn't, you should know that. In point of fact, there are a lot of unexpected things that you are able to deduct, which is why it is important to investigate the deductions and credits for which you can be qualified. This year, make it a priority to get the most out of the tax deductions and credits that are available to you. Here are some of the most unexpected deductions that you may be able to take on your taxes.

Things You May Not Know That You Can Allege

When it comes to filing your taxes, there are a variety of items that you might be able to deduct, including face masks, hand sanitizer, a dog, and even sunglasses. Investigate the possibility that you are eligible for these tax deductions.

Now that tax season has arrived, you must make sure that you have claimed all of the deductions to which you are entitled, regardless of whether you intend to do your own taxes or work with an accountant. The following is a list of some of the tax deductions that you might be eligible to claim but were unaware you might.

Face Masks, Hand Sanitiser And Antibacterial Spray

Our working methods have been altered as a result of COVID-19, particularly in regard to the requirement to keep a social distance and uphold habits of good hygiene. Find a line of work in which it is either impossible to preserve a social distance or in which you are required to have direct physical contact with customers. It is possible that you will be able to receive reimbursement for products of personal protection, such as face masks, hand sanitizer, and antibacterial spray.

Teachers, hotel employees, retail staff, medical staff (including ancillary workers like receptionists and cleaners), beauty therapists, and cosmetologists are all examples of people who are eligible to file a claim for unemployment benefits.

A Handbag

You are eligible to make a claim for a tax deduction equal to the cost of the bag if you use it for work-related activities, such as transporting an iPad, phone, calculator, stationery, or anything else that is required for your job. However, you need to exercise caution because the handbag you bring to work must not only be suitable for work but must also be used for work. It's possible that you won't be able to claim that new Gucci bag, but if it's a more modest bag and you can prove that you exclusively use it for work, you should be able to. It should be acceptable for men to claim a claim for a business briefcase, satchel, or bag.

Sunscreen, Sunglasses And Hats

Because prolonged sun exposure can be harmful to your skin, if you have a job that requires you to spend significant amounts of time working outside, you may be able to deduct the cost of sunscreen from your medical expenses. Gardeners, farmers, people who work in the building and construction industries, and people who engage in outdoor leisure, such as those who offer outdoor fitness classes, are all examples of people who might be eligible to claim sunscreen. Additionally, the same parties have the right to claim ownership of headgear and sunglasses.

An Apartment In Another City

Did you know that, in some circumstances, you can deduct expenses from a residence you live in personally? If you own an investment property, you can deduct expenses from the rental revenue. For instance, according to recent ATO guidelines, if you're required to work away from home by your employer, your assignment is only temporary (so you haven't actually relocated), and you choose to rent or buy an apartment in the other work location rather than relying on hotels or motels, you can claim a deduction for the work-related costs relating to the apartment, including either rent or interest on the mortgage, depending on whether you re renting or buying the apartment.

Performance Tools

If you are a professional performer (such as an actress, musician, dancer, magician, or performer in a circus, for example), you may be eligible for a wide variety of peculiar tax deductions. You may want to investigate into claiming these deductions. Mime lessons? Absolutely. How much do ceremonial swords typically cost? If you're a professional sword swallower, then yes, without a doubt. Classes in acting, dancing, playing musical instruments, or doing magic acts are among other possibilities. If you make your living from the stage or the film, you are immediately eligible for a wide host of peculiar and fascinating claims.

A Dog

There are some conditions that must be met before it is even possible to consider claiming a deduction for a dog. For instance, if your company keeps the premises safe by employing a guard dog, then the cost of the dog is absolutely tax deductible. Because it is considered a capital asset of the company, you are eligible to make an immediate claim for a deduction equal to the total cost under the instant asset write-off that is available to small and medium-sized firms. It must be a breed of dog that is suited for the job at hand; a poodle is not likely to accomplish the trick. The same line of thinking should be used to dogs that work on farms, such as sheep dogs. The costs associated with maintaining the dog for employment purposes, such as food and veterinary care, might potentially be tax deductible.

Social Functions

You won't be able to deduct the cost of a night out on the town off your taxes, according to the ATO. The one and only exception to this rule is when attending the function is an essential element of one's job. One scenario in which a journalist may be eligible to submit a deduction claim is one in which they attend an event from which they intend to afterwards publish a story through their media outlet.

Professional Subscriptions

If your job requires you to be a member of a professional or trade association, you may be eligible for a deduction equal to the cost of the dues that you pay to maintain your membership. In addition, if you are a member of a trade union, this will pay for your dues to the organisation, as well as any subscriptions you have to professional or trade journals.

Home Office Expenses

This year, the biggest item that can be deducted is money spent while working from home. This is due to the fact that many people in Australia work from home full-time, and even more spend at least some of the year working from home.

You are allowed to deduct the part of your actual working from home expenses that is relevant to your job. You are eligible to receive the following items, among others:

• Heating, cooling and lighting bills
• The expenses incurred in cleaning your home office, which may include the cost of cleaning supplies or the hiring of a housekeeper, if necessary
• The value of the furniture and fixtures in the home office has decreased
• The cost of using office equipment and computers over time
• Expenses associated with fixing office equipment, furniture, and other fixtures in the house
• Items that fall under the category of "small capital" and have a cost of less than $300, such as furniture and computer equipment, are eligible for immediate and complete write-off (they are not required to be depreciated)
• Stationery and other consumables for computers, such as printer ink
• Phone (mobile and/or landline) and internet expenses

In the same vein, if you use your home internet service to deal with job-related problems, such as responding to business emails, you can also claim a portion of the costs associated with that service. Remember, keep a diary.

There are two alternative approaches to consider in addition to submitting actual costs for reimbursement.

The interim simplified method of computing additional operating expenses at a rate of 80 cents per work hour is applicable throughout the entirety of the current tax year and will continue to do so until the 30th of June, 2021. (and potentially beyond). As a result of COVID-19, you will be required to keep a record of the number of hours that you have worked from home. This record can be kept in a diary or on a timesheet. You are not allowed to make any additional claims in regard to working from home if you employ the way of earning 80 cents per hour. Therefore, expenses such as those associated with cell phones, internet usage, office furnishings, and technology are all covered by the 80 cents per hour rate.

Alternately, you can choose to use the rate of 52 cents per hour, which enables you to claim 52 cents per hour in addition to the actual costs of using the phone and the internet, as well as the costs of computer consumables and stationery, as well as the decline in value of equipment such as phones, laptops, and other similar items. This provides many workers with a claim that is significantly larger than the rate of 80 cents.

Things That Will Advance Your Career

You can put on the claimable list any books or subscriptions that you've bought specifically for the purpose of conducting research for your job. In a similar vein, if you want to join a union or a professional body that backs your line of work, the fees associated with doing so are also eligible for reimbursement.

There is also the possibility of submitting claims for items such as self-education, seminars, and several other types of training courses. Sommer emphasises that while if this is an excellent way to improve one's skills for employment, it does not grant one the right to pursue personal interest courses and seek a tax benefit for doing so.

The general rule is that the course should be relevant to your current occupation, and you should consider whether or not it will raise the likelihood that you will earn more money in that occupation.

If you are currently working as a painter and decide to take a course to become certified as a yoga instructor, the cost of that yoga course won't be tax deductible until such time as you begin working in a field that is directly related to yoga.

Income Protection Insurance

Be careful to include income protection insurance in your tax return if you have a policy with a private insurer that is not associated with a super fund. This type of insurance protects your earnings and is purchased separately from super funds.

Personal premiums for income protection that have been paid out of pocket are eligible for reimbursement in any fiscal year in which they have been paid or incurred. You are eligible to take a tax deduction equal to the total amount of the premiums you have paid, regardless of whether or not you have been earning an income.

Keep in mind, however, that if you are unable to work because of a sickness or injury and do make a claim through your income protection insurance at any point in the financial year, the benefit amount is recognised as taxable income. This applies even if you make the claim at the beginning of the year. Therefore, you need to make sure that your return reflects it in the appropriate manner.

No matter where the money are coming from, you should never hesitate to enquire about the possibility of having taxes withheld on your behalf. Be aware that the benefits you receive from filing a claim under a policy are not exempt from paying taxes.

Costs Incurred By Traveling To And From Work Via Automobile

Even though you can't deduct the time spent driving to and from work, there are still a few things you may do to get some of the money back that you've already spent on your wheels if you use them for work in some other capacity.

Imagine that one of your responsibilities as an employee is to drive to several different sites throughout the course of the workday. Perhaps you are a salesperson or you have meetings with clients. If this is the case, you need to think about how far you drive in a year and choose between the logbook technique and the cents-per-kilometer method to determine how much you are entitled to receive for your claim.

Because the cents-per-kilometer method is limited to claiming a maximum of 5,000 kilometres of travel, the logbook method is often more suited when you are travelling more than 5,000 kilometres per year for your employment.

You are unable to make a claim for depreciation using the cents-per-kilometer technique; but, you are able to make a claim using the logbook method.

Clothing, Laundry And Dry-Cleaning Expenses 

Now is not the time to go on a buying binge. You are not allowed to bring in all of the apparel that you might believe to be appropriate for the office. Expenses associated with the acquisition and maintenance of work attire fall under the category of industry-specific items. You may argue that you bought a pair of shoes specifically for the purpose of wearing them at work; but, it would be difficult to demonstrate that this was not also the case.

One way of looking at this is to assess whether or not it is likely that a chef would wear their chef pants in any scenario other than their work, and the answer to that question is probably not. Pants of a standard black colour and shoes with closed toes are acceptable attire for the workplace; nevertheless, these items are also acceptable for use in other contexts, as their function is not limited to that of the workplace.

The Benefits of Working from Home, as well as Recent COVID-19 Amendments

In 2021, many people who continue to work from home consider this to be a significant factor in their decision-making process. When determining what expenses are tax deductible when working from home, there are two techniques to choose from: the fixed-rate method and the real cost method.

The first method uses a set rate of 52 cents per hour to determine compensation, whereas the second method requires you to keep a detailed record of all the costs you incur while working from home, costs that your company would have otherwise covered. This includes charges for things like utilities, internet, depreciation on technology, and other types of equipment.

The 'COVID-hourly rate' or'shortcut technique' has been extended to encompass the 2020/2021 fiscal year, bringing the fixed-rate approach up to 80 cents per hour. This change was made possible by the inclusion of the 2020/2021 financial year in the scope of the extension. According to Sommer, this will be suitable for employees who have not experienced significant start-up costs and whose employers have supplied the required equipment and technology for them to carry out their work responsibilities. Keeping a cost journal and reviewing the entries when it's time to file taxes is the most reliable method for determining which expenditures offer the greatest return on investment.

You can make a tally of your hours worked and determine the amount you are eligible to claim using the quick technique. After doing so, you can evaluate this amount in relation to any costs you have incurred as a direct result of working from home. Based on this, you will be able to choose the approach that will offer you with the more accurate deduction.

Even though it's always nice to obtain a little payback on purchases connected to work, you shouldn't spend the money unless you absolutely need the item in order to fulfil the responsibilities of your job or advance your career.

The golden rule is that just because something can reduce your tax liability does not necessarily mean that purchasing it is a wise decision. You are still required to spend money in order to take advantage of a deduction, and you do not receive this benefit for free.

Healthcare And Social Care

If you have a job that requires you to wear a uniform, the money you spend on it is tax deductible, but the deductions don't stop there.

You are able to deduct the cost of clothing that you wear at work to prevent your regular clothes from becoming soiled or damaged, such as lab coats and aprons, and you can also claim a deduction for the cost of the garment itself.

You are also allowed to submit a claim for the money spent on COVID-19 protective equipment, such as antibacterial hand wash, face masks, and hand sanitizer.

Protective apparel, including shoes with non-slip soles, can also be deducted from your taxes.

There are a lot of ways to make money off of the epidemic if you were fortunate enough to attend a conference during it.

That can include the cost of transport, meals, and housing as well as the cost of the conference itself, even if it is held in a foreign country; however, you may need to divide the costs and disallow the private portion if you spend some time relaxing on the beach after the conference.

It is possible to make a tax deduction for professional subscriptions paid, regardless of whether they are paid to an organisation like the Australian Medical Association or to a labour union.

The good news is that if you've put in long hours and worked overtime, you can submit a claim for the money you spent on food, provided that your employer hasn't given you an allowance for your hard work. Those who obtain their employment through an agency are also eligible to make a claim for the expense.

As part of their jobs, many people who work in healthcare will have to drive their own vehicles. This can entail transferring patients, travelling between the homes of patients, or travelling from one medical institution to another; all of these types of excursions have the potential to be reimbursed.

Retail Workers

It's important to consider the kind of store you work in before deciding whether or not to wear a uniform.

If you wear regular clothes, the cost of those clothes is not tax deductible. Some retail workers in fashion stores are forced to wear clothing from the particular store or brand they are employed by; nonetheless, those garments are still considered to be traditional apparel, and as a result, there is no deduction that can be taken for them.

Deductions can be claimed for work-related courses, such as those dealing with health and safety or first aid, management training, or job-related courses such as a Certificate III in retail. These types of courses may also involve management training.

If your job requires you to travel between different stores, you may be eligible to receive reimbursement for the costs of travel between different work locations.

This could include any time you spend working temporarily from a different shop to your regular employment – for example, if you were covering for someone else while they were on vacation – as well as any travels you take between stores to deliver products.