Receiving a tax rebate has been described as “feeling like Christmas in springtime”. With a sudden and often unexpected lift to your bank account, a cheque from the tax man landing on your doorstep can often mean a chance to take the family on holiday, go on a well overdue shopping spree, or, at the very least, pay off some debt.
Obviously the bigger a tax refund is the better and whilst the size of these much welcomed cheques are essentially out of our hands, do we have any control or influence the amount of tax rebate we receive?
Take a look at some of the following tips on how to get a big rebate from the tax office.
Certain jobs require employees to use equipment that they have bought with their own money. If a company does not reimburse these expenses to an employee, you may be eligible to have some of the professional expenses deducted on income tax to help maximise a tax repayment.
If you use a mobile phone for work, you may be able be able to be entitled to getting the work-related calls you make deducted from your income tax. In order to give you a clearer understanding of what professional expenses you may be able to deduct from income taxes in order to maximise a tax refund, it would be worth talking to a professional tax accountant.
Deductions made for donations given to charities can offer substantial tax savings, thus having a significant impact on your tax rebate. As all types of charitable donations are eligible as tax deductions they will help to lower your tax bill.
In order to make tax savings when you make charitable donations, you will need to keep the receipt of the donation. Most legitimate non-profit charities have a system set up to ensure that receipts are always given to anyone that makes a donation.
As well as having to show receipts of any donations made to legitimate charities and organisations, there may be a ceiling on how much of your donations you can actually deduct. It is advisable to seek professional financial advice in order to ensure that you don’t exceed the maximum.
Note down family obligations
Not everybody is aware that the cost of child care is deductible from income tax. Not only can you deduct child care expenses in order to maximise a tax refund but you can also deduct any expenses you have on dependent aging parents.