Tax Return Tips And Tricks For High School Students

If you're like the majority of people who are now enrolled in high school, you're definitely looking forwards to the day when you won't have to worry about filing your taxes anymore. Regrettably, that time has not come around just yet. 

However, you can do a few things to make the process a little easier. In this piece, we'll provide you with some advice and suggestions for preparing and filing your taxes. In addition, we will supply you with a few resources that can be of assistance to you. Read on whether you are either someone who is doing their taxes for the first time or someone who is simply seeking for methods to save money.

Are you currently enrolled in high school and getting ready to file your taxes for the very first time? In that case, you might be asking where you should get started. Thankfully, there is a wealth of information available in the form of tax return tips and tricks that can assist in simplifying the process. This essay will provide an overview of some of the most essential considerations you should bear in mind when completing your tax return.

Are you going to be filing your first tax return and you're in the midst of your senior year at a high school in Australia? Don't fret; you're not the only one feeling this way. This post will provide you with some advice and guidance to make the procedure as simple and straightforward as it can possibly be. Before you get started, you need to be sure you have compiled all of the information that is pertinent to the task at hand.

This contains information such as your age, income, and any deductions or expenses you could have. You can find most of this information on your payslip or through your Centrelink account. If you're unsure about anything, don't hesitate to ask someone for help.

Students in High School Who Owe Taxes

Are you a little lost when it comes to taxes? We were able to have a direct conversation with the ATO, and they were kind enough to supply us with a user-friendly handbook that explains how the tax system works. Have a look at it down below.

Considering that you are a student, you probably don't give much thought to taxes very often. However, because of your participation in our tax system, you are able to support the programmes and services that individuals rely on on a daily basis. In this piece, we will walk you through some essential facts and pointers on how to file your tax return in the most effective manner.

What is the Purpose of the ATO Collecting Taxes?

The basic community services that are funded by taxes collected by the Australian Taxation Office (ATO), which are as follows:

• health care
• education
• emergency services
• roads and train lines
• welfare and disaster relief.

You can help ensure that these services will continue to benefit your community so long as you fulfil your tax duties.

Your Tax File Number

Your personal reference number in the Australian tax and superannuation systems is referred to as your tax file number (TFN). Applying for a Tax File Number (TFN) is not going to cost you anything. Your Tax File Number (TFN) will always belong to you, regardless of whether you change jobs, move to a different country, or even change your name. You are not required to have a TFN, but if you do not have one, your tax liability will be higher. You also won't be able to use the government's computerised system to submit an application for benefits or file your tax return.

Because your TFN is one of the most essential components of your identification, you need to take extra precautions to protect it. You shouldn't discuss it with anyone other than the following people:

• the ATO
• Services Australia
• your bank
• your employer
• your super fund
• your registered tax agent.

Applying For A TFN

The process of applying for a TFN with the ATO is absolutely free of charge, although the manner in which you apply for a TFN will depend on your specific circumstances. In order to apply for a TFN, the majority of people:

• fill out a form that can be found online
• the summary should be printed
• make an appointment and show up for the interview at Australia Post in order to hand over your identification credentials.

Lodging Your Return

Each year, you are required to submit a tax return. You have the option of using a licenced tax agent or filing your own return on your own. You are obligated to submit a tax return if you have had tax deducted from your pay throughout the year or if you have earned more than $18,200 during the financial year. In general, you are required to do so (1 July – 30 June). If you are responsible for filing your own tax return, the deadline is October 31. You will typically have more time to finish your return if you intend to submit it through a tax agent; nevertheless, you must make sure to get in touch with them by October 31.

If you decide to file your own tax return, using myTax to do so is a quick and simple process that is also risk-free. You are need to have a myGov account in order to use myTax, and that account must be linked to the ATO. Once you've linked your accounts, all it takes to use myTax is to navigate to the ATO within myGov and select the Prepare button to get started on your tax return. If your financial situation is relatively straightforward, the processing of your tax return should take approximately two weeks.

Using the ATO's Do I need to lodge tool, you may determine whether or not you are required to submit a tax return. After obtaining a TFN, you are required to inform the ATO whether or whether you are required to file a tax return, even if you are exempt from doing so under the law. You are able to accomplish this by filling out a non-lodgment advice, which may be done through the ATO online facilities that are accessible through myGov.

Which Income Do I Need to Declare?

You are required to report any and all income, including that which you earn from your job, the government, investments, businesses, and overseas sources. We get this information from your companies and financial institutions, but it is up to you to verify that it is accurate and comprehensive before we can use it. It's possible that some of your money will need to be entered manually as well.

What Exactly are Deductions, and How do I go about Claiming Them on My Taxes?

If you spend money on goods that are necessary for your job, you might be allowed to deduct those costs from the income you report on your tax return. These are referred to as deductions, and they could include things like protective clothes or other types of equipment.

To qualify for a tax deduction for an expense related to your work:

• you must have used the money yourself, as you will not be given the money back
• the cost must have a direct bearing on the production of your income
• you need to have a record to demonstrate this (usually a receipt).

Only the portion of the expense that was related to work can be deducted, even if it was used for both personal and professional reasons.

Record keeping

You are need to keep records or be able to prove how you computed your claims if you intend to deduct expenses related to your place of employment. You are required to keep your records for a period of five years beginning on the date that you submit your tax return. Using the myDeductions function that is included in the ATO app, you will have no trouble keeping track of your records regardless of where you are.

Car expenses

You are eligible to submit a deduction claim for the money you spent while carrying out your responsibilities on using your own vehicle. This includes travel between many job sites, sometimes even for multiple employers.

It doesn't matter if you live a considerable way from your normal office or work outside of normal business hours; you still can't claim the expense of travel between your house and your place of employment because these visits are considered to be private in nature.

Clothing expenses

Even if your employer requires you to wear conventional clothing to work or if you only wear it while you are on the job, you are not allowed to deduct the expense of purchasing, hiring, mending, or cleaning the conventional clothing you bought to wear for work.

The term "conventional clothing" refers to the clothing that people wear on a daily basis, regardless of the occupations that they hold. Some examples of conventional clothing include the business attire worn by office workers, which consists of black pants and a white shirt, and the jeans and drill shirts worn by tradespeople.

If the article of clothing fits into one of the following categories, you are eligible to deduct the expense of purchasing, renting, mending, or cleaning it:

• occupation-specific
• protective
• compulsory uniforms
• non-compulsory uniforms (registered with AusIndustry).

For the purpose of substantiating your claims, you should make it a point to maintain accurate records of your clothes and laundry costs, such as receipts or a journal. If your employer pays for or reimburses you for the spending, you are not allowed to deduct the cost of the item from your taxes.

Advice on Financial Matters for College Students and Young Professionals

Tax season can be a little intimidating, especially if you have never filed a tax return before or if you aren't entirely sure what deductions or credits you are entitled to.

The good news is that submitting your tax return can be a piece of cake when you know what you're doing and have all the necessary information. You will be able to secure the largest possible return by following our straightforward advice, which will also make the procedure much simpler.

Which Tax Documents Should I Have Prepared So That I Can E-File My Return?

On your annual tax return, you are required to disclose the total amount of money you have received throughout the year. You can locate certain documents by searching MyGov or by contacting a tax agent.

The following is a condensed list of things that need to be gathered:

Regular Income documents

• The payment summary as well as the income statement (what was formerly known as a group certificate) - Your income statement is now available in the 'income summary' section of your MyGov account, where it may also be accessed by an accountant working on your behalf.
• Any freelance or self-employed income
• Income from any activity in the sharing community (Uber, AirBnB, Airtasker, Deliveroo, etc.)

Other Income

• Any account that earns interest on savings.
• Earnings derived from the ownership of any shares, such as dividends.
• The money you received as rent for subletting a room in your home.
• Rental income from any investment properties that you own outright or in which you have a financial interest.
• Any other forms of revenue that you were able to obtain.

Deduction records

• Documentation in support of any deductions that you want to claim on your tax return (more on that below).

Other records

• Private health information (if applicable).

Which Tax Breaks Am I Eligible To Take Advantage Of?

When it comes to each potential deduction that you wish to claim, there are a few things that you need to ask yourself. If you are able to give a positive response to each of the following four questions regarding an item, then you should be able to deduct that expense from your tax return:

• Have you purchased the item with your own money and paid for it yourself?
• Your employer did not pay you back or compensate you for any of your expenses.
• Do you still have the receipt or another proof that the purchase was made?
• You mentioned that you made the purchase for your work, is that correct?

What Tax Deductions Are Available If You Are a Student?

Self-education costs are the only ones that can be deducted for the vast majority of students. It is essential that you are aware that in order to qualify for tax deductions for these expenditures, the course that you are taking must have a direct bearing on the work that you are already performing. For instance, a shop worker who is attending college to become a teacher is not eligible to make a claim, although an engineer who is studying for a master's degree in engineering most definitely can.

Common tax deductions for students include:

• Course/tuition fees (not including HECS/HELP).
• Stationery and textbooks.
• Student service fees.
• Union fees.
• Amenity fees.
• Equipment depreciation and repairs (e.g. laptops, computer, printer, etc.).
• Car expenses (if applicable).

Work-related deductions available to students who are also employed can include the following:

• Uniforms (must have a logo).
• Travel (only for work-related reasons such as training or a conference).

Important notes:

Be aware, though, that in most cases, you won't be able to deduct costs associated with your own education unless you also maintain a full-time job while doing so. Check the ATO website or speak with a tax professional to find out what deductions and credits you are eligible for.

Deductions For Young Professionals

Deductions on your tax return can be made for money spent that was directly related to your job. Your tax return may be increased as a result of the reduction of your taxable income that these expenses enable.

The following are some examples of common deductions:

• Phone expenses (work % only for lease or purchase costs).
• Laptop expenses (work % only for lease or purchase costs).
• Travel expenses.
• (Traveling between venues, to training courses or work-related events).
• Expenses associated with training for work, such as tuition, required equipment, and transportation expenditures, as well as lodging and food if you are forced to be away from home for the duration of the training.
• Magazine, journal, or resource subscriptions that are directly connected to your line of work and are utilised by you in your professional capacity.
• If you use your car as part of your job or if you transport supplies or equipment for your supervisor, your personal car expenses are considered business expenses.
• Tools and equipment – the amount that you spent on purchasing or leasing any tools or equipment that you needed for your employment (Power tools, work bags, stationery, lenses, software, materials etc.).
• Accessories for protection and safety, include aprons, sun protection, gloves, ear protection, safety glasses/visors, masks, overalls, harnesses, and so on.
• Expenses related to working from home, in the event that this arrangement is necessary.

Deductions that the vast majority of individuals fail to take into account:

• Your tax agent costs!
• Income protection insurance purchased separately from your superannuation fund is referred to as insurances.
• Donations to charity can only be made to organisations that are registered.
• Personal super contributions.

Don't Throw Away Those Receipts!

Many younger individuals fall victim to the misconception that they can deduct expensive purchases from their taxes even if they cannot provide proof of purchase for such items. It is imperative that you maintain track of all of your receipts throughout the year. Because receipts tend to become illegible over time, we advise photographing them and compiling them into a book. When it comes to tax time, this is also an excellent approach to guarantee that you have not forgotten about those less significant charges. There are a tonne of great applications available, and you can even use them to organise your receipts.

Important Tax Advice For Students

In addition to getting a part-time job and opening a bank account, paying taxes is a solid sign that you have reached a level of financial maturity appropriate for an adult. The majority of us find the process of putting together and submitting our income tax returns to be a little bit intimidating. However, how can you determine whether or not you are required to submit one in the first place?

Are You An Australian Tax Resident?

The first thing you need to do is determine, for the purposes of the Australian income tax, whether or not you are considered a resident of Australia.

You are considered to be a resident of Australia for purposes of the income tax if you were born in Australia and continue to live in Australia. This is because Australia is the country in which you are considered to be a resident.

Importantly, though, if you are a student studying abroad in Australia, you may also be eligible to be deemed a tax resident of Australia. This is due to the fact that the Australian Taxation Office (ATO) generally maintains the position that if you have lived in Australia for a period of six months, your actions and routines are consistent with those of a person who resides in this country for the purposes of taxation.

For instance, according to one of the ATO's binding public taxation rulings, an international student who came to Australia for a four-year university course was considered to be an Australian tax resident, despite the fact that he left Australia after only six months to return to his home country because of an illness in his family. Why? Because while he was in Australia, his living and working arrangements were comparable to those of a person who lives and works in this country on a day-to-day basis. (If you want to gain a more in-depth understanding of the judgement, take a look at Example 10 of Taxation Ruling TR98/17.)

If you aren't sure whether or not you qualify as an Australian resident for the purposes of income tax, you should get in touch with the Australian Taxation Office (ATO) or a licenced tax agent so that you may get further information.

What Are Your Obligations If You Are a Tax Resident of Australia?

Assuming for the purposes of taxes that you are an Australian resident, what are some of the most important tax implications you need to take into consideration?

You will, however, be eligible for a tax-free threshold, which is a positive development. If your total income was less than $18,200 during the year that ended on June 30, 2018, you won't have to pay any income tax since you won't owe any.

In addition to that, there is a possibility that you could receive a refund. In the event that you worked part-time, received a salary from which income tax was withheld by your employer, and your total taxable income was less than $18,200, you would be eligible to receive a refund of any tax that was withheld from your salary income. This is the case even in the event that your total taxable income was higher than $18,200.

On the negative side, you will be required to pay tax on all of your taxable income for the fiscal year that concluded on June 30, 2018, regardless of the location from which you earned that money. As an illustration, if you are an international student, you will be required to disclose not only your salary from Australia but also any interest income obtained from a bank account that is held in your home country.

And if an insufficient amount of income tax was withheld from your paycheck, or if you earned other assessable income on which you owe tax, you will be compelled by law to file a return in order to pay the tax that is due on it.

In addition, residents of Australia are required to pay a Medicare levy of 2% of their taxable income, however this tax only applies if the resident's income is above a specified threshold.

What Am I Going To Need To File A Tax Return?

A tax file number is required to be provided for anyone who submits an income tax return (TFN). If you've ever held a job, chances are good that you already have a TFN. If you've ever held a job, you've probably already been given a TFN.

If for whatever reason you are required to file a return but do not have a TFN, you will be required to submit an application for one to the ATO, either directly or via the use of a registered tax agent.

The next step in the process of preparing your income tax return is to compile the necessary information. The following items are included in this information:

• a payment summary is a statement that is issued by your company at the end of each fiscal year to show how much income they paid you as well as how much tax they withheld from that income.
• bank statements that detail any interest you've accumulated are required.
• dividend receipts, which detail payments made to you by businesses in which you own shares
• receipts and bills of exchange.

If you already have a tax file number (TFN) and your financial situation isn't too complicated, you could use the myTax software offered by the Australian Taxation Office to complete and submit your income tax return online.

If this is not the case, you should get in touch with the Australian Taxation Office or a qualified tax professional to ensure that all of your rights are identified and that your income tax return is correctly prepared.

Which Forms of Income Must You Include In Your Return?

During the process of preparing your tax return, you will be required to disclose every source of taxable income you have received during the current fiscal year. The term "money" only scratches the surface of what is meant by the term "income," which might derive from a wide variety of places, such as:

• Compensation received for one's work, whether it be on a full-time, part-time, or casual basis
• Allowances and bonuses
• Gratuities and tips, such as those earned while working in the hospitality industry
• Payments obtained for one's work as a freelancer or independent contractor
• Business income (but not income earned from a hobby)
• Payments from the government, including the Newstart Allowance, Youth Allowance, and Austudy payments, among others
• Bank interest earnings
• Dividend income
• Payments obtained as a beneficiary of a family trust or as a partner in a business partnership, as well as
• Gains on the sale of assets are considered capital gains, and they are a subject that requires highly specialised knowledge.