With so many people working from home this year due to the COVID-19 pandemic, the temptation will be to make claims for deductions that may or may not be acceptable to the tax office.
The Australian Tax Office (ATO) has warned that they will be on the lookout for unsubstantiated or higher than expected claims for work related expenses.
At the same time, there will be claims that are quite legitimate and often, the best advice is to seek advice before doing so. Many people will be able to process their returns directly through the myGov portal, ho wever using a registered tax agent may be able to get you a better return, particularly if you have worked from home for any length of time and the cost of getting the advice is in itself a deductible expense.
To assist people who want to do their own returns, the ATO has issued a brief shortcut method assessing of what can be claimed and what can’t.
According to the ATO website, to claim a deduction for working from home, all the following must apply, you must have spent the money, the expense must be directly related to earning your income, and you must have a record to prove it.
The other thing that the ATO point out is that the shortcut claims only apply to that period between March 1 and June 30 however other rates apply if the expense occurred outside of that.
This year is likely to be quite different to most and for that alone, it is probably a good idea to seek out advice from a tax agent before lodging your returns.
