As a taxpayer, there are many tax deductions you may forget to claim or that you may not even know that you could claim. When completing or lodging your tax returns, you are usually entitled to claim some deductions for certain expenses, especially your work-related expenses, i.e., those directly associated with how you earn your income. The advantage of tax deductions is that they reduce your taxable income, which means you will pay less tax. With that in mind, here are some of the tax deductions you can claim when tax planning with your tax agent.
Car and Travel Expenses
You can claim deductions on the expenses you incur when using your car for work-related purposes. That is, you can claim maintenance and fuel costs as tax deductions for using your vehicle for work-related activities besides driving yourself to and from work. The activities may include, among others, moving from one work site to another, moving to and from job-related meetings, driving to the bank or post office or simply making trips between offices.
Keep in mind that there exist special conditions regarding what you can and cannot claim for trips you make not only between your home and the workplace but also between offices. Also, eligibility may entail you being the owner of the car and the travel being a part of your working day. You should speak to a tax agent to explain to you all the conditions in play.
You may also be entitled to a tax deduction for clothing you bought for work-related reasons. Remember that the clothing should be specifically meant for work, i.e., clothing you wouldn't otherwise wear outside of the workplace. Deductions on clothing usually apply to clothing such as uniforms, i.e., a shirt with the company's logo, protective gear, etc. The costs of laundry or cleaning the clothing is also a part of the deductions you can claim. Remember that if you receive an allowance for the purchase or cleaning of your work clothing, you have to indicate that amount on your tax return as part of your income.
Home Office Expenses
Do you occasionally work from your home? Or does your job entail you doing your office work at home? If that's the case, you can claim tax deductions on the equipment and tools that aid your work as well as the costs of running the home office. For instance, you can claim tax deductions on equipment such as phones, computers and even furniture. Heating and cooling, repairs, lighting or even cleaning can also be claimable as part of your home office expenses. If you are in doubt of what portion is work-related and which one is for private use, a trusted tax agent should be able to help you.