Your Tax Records

As the tax year flies by it is important to keep all your tax information together in a folder (either plastic or electronic) ready for your annual tax return preparation.  Besides details of your income earned, it is equally important to keep records of your expenses incurred in earning this income.  These deductions may reduce your taxable income which means paying less tax, but can be important for other reasons. For example, if you do not have private hospital cover then a Medicare levy surcharge may be payable.   Your deductions could put your income under the threshold and save you from having to pay this extra levy.

So go out now and buy that folder or transfer those emails into a new ‘tax folder’.  Not only will this make it easier for you at tax time, it will also help satisfy the requirement to keep tax records for 5 years after you lodge your tax return.

Written by Kerry Brooks

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