The tax season may still be a few months away, but it always pay to prepare your tax returns Geraldton early, especially if you are looking to reduce your tax. The good news is that there are countless ways that can help you reduce your tax. And if you would like to make sure that you are on the right track, you might want to consider hiring tax accountants like Melissa Simpson to make your life easier.

Here are some simple ways that can be useful:

1. Keep good records.
To ensure that your tax process runs smoothly and you claim every expense you are entitled you, the best way to go is to keep good records. Be organised. It would only take 5 minutes every week to sort out your receipts and update your logbook. When you do this, you are guaranteed to save a lot of time at the end of the financial year.

2. Claim what you are entitled to claim.
One of the best tool to reduce your overall tax payable is to claim deductions. When you spend money during the year and it is related to earning an income – make sure to keep the receipt and claim the tax returns Geraldton deduction you are entitled to. The expenses that you use for part personal and part work can still be claimed as apportioned deduction. If you are not too sure about claiming a particular item, keep the receipt and consult registered tax accountants like Melissa Simpson.

3. Be charitable.
When you make over $2 donation to a registered charity, you would be pleased to know that this too is tax deductible. After making a donation, the charity would provide you a receipt – then you can claim the donation as a tax deduction in this financial year. Don’t forget to keep your receipts organised in a folder so by the end of the financial year, you can take advantage of the extra deductions.

4. Seek the advice of tax accountants.
Using the professional service of a tax accountant will not only save you a lot of time, but also help improve your net payable or your tax refund. According to the statistics from the Australian Taxation Office, 71% of Australians use the service of a tax accountant like Melissa Simpson when it comes to preparing and lodging their tax returns Geraldton.

5. Medicare levy surcharge.
Not holding a private insurance policy comes with a disadvantage. It’s because when you don’t have one, you will be required to pay an extra 1% on top of the 1.5% Medicare levy you pay. This is for taxpayers whose income exceed $154,000 for families, and $77,000 for singles. However, if you take out private health insurance, it will only you cost you less than 1% of your gross income.