Doing your taxes is one of the most dreaded activities every Australian faces. However, it’s easy if you know which pitfall to avoid. If you’ve lacked the confidence to do your own taxes for years, then you’re in luck. Here are some of the most common tax return mistakes to watch out for.

Failing to update your bank details

Most Australians would focus on the actual making of tax returns, but they fail to realize that updating your bank details is also a crucial step in taxation.

Failing to include your income

Any tax accountant would tell you that it’s essential to be able to provide correct income information through summaries. Keeping an accurate record of your income would help you in the long run.

Failing to copy last year’s tax return

When it comes to your tax return, make sure to consider last year’s tax return as well. This process will include the amount from last year's earnings and any work-related expenses, which will be deducted from the amount.

Failing to keep track of your receipts

Speaking of accuracy regarding your income and expenses, a good tip would be to keep track of your receipts. This practice makes backing up your claims a lot easier because there is an actual receipt. Note that adjustments are made because oftentimes, the taxpayer had no records for their expenses.

Claiming your daily dose of caffeine

Another thing to avoid when preparing your tax return is claiming your daily dose of caffeine. Remember that the expenses you can claim should be directly related to earning your income.

Trying to claim a lot or too much

Now that we’re on the topic of claiming expenses, most taxpayers find it hard to find the line between claiming too much and not claiming enough. Do not exaggerate your deductions just to get a higher amount of refund.

Not claiming enough

On another note, if you don’t know how to claim expenses correctly, a tax accountant would advise that you have not claimed enough. Some of the commonly forgotten deductions include any work-related car expenses, mobile phone expenses, income protection, union fees and donation, home office expenses, tax agent fees, medical fees, and other work-related expenses.

Not keeping track of your work-from-home hours

This year, thousands will be claiming hours that have been worked from home. If you're planning to do this, you may want to seek the help of a tax accountant.

Relying too much on data that is pre-filled

Another common mistake is relying too much on pre-filled data. Do note that ATO's system will be pre-filling out most of your information. Make sure that you go through each one and not immediately assume that all information provided is correct.

One of the main reasons why you need Tax Ideas is that you'll be able to minimize taxes and maximize net worth without breaking a sweat. It is without a doubt, preparing your tax return can be very complicated. Tax Ideas can take the complication out of that process. Visit www.taxideas.com.au to learn more!