03 Aug Top tax time myths for 2020 that slow down returns
The ATO has published a list of common mistakes and misconceptions taxpayers have around tax time:
- bank details don’t update themselves: the ATO does not keep track of changes to bank nominations for taxpayers to receive tax refunds;
- it’s not okay to double dip: it’s important to remember that if you’re claiming under the shortcut method (of working from home expenses), you cannot claim a separate additional deduction for any expenses you incur as a result of working from home;
- home to work travel is not claimable: generally, most people cannot claim the cost of travelling from home to work unless, they are required by their employer to transport bulky tools or equipment and there is not a safe place to store these at the workplace;
- you can’t just claim a flat $300 if you had no expenses: you don’t need receipts for claims of expenses up to $300, but you must have actually spent the money and be able to show the ATO;
- work-related expenses need to be work-related: taxpayers can only claim for expenses that are directly related to earning their income;
- lodging earlier doesn’t always mean getting your refund earlier: each year the ATO automatically includes information from employers, banks, private health insurers (and this year JobKeeper for employees and JobSeeker amounts) in people’s returns. Taxpayers are advised to include all relevant information if lodging before the ATO automatically updates the information, so as to avoid delays in the return.