As tax time approaches every year taxpayers are required to lodge their tax returns before the deadline advised by the Australian Taxation Office.
While completing and lodging their tax returns, taxpayers are entitled to benefits such as tax deductions. Some deductions require the collection of receipts and other records to assist them in getting a handy refund.
Receipts are the easiest way to satisfy the Australian Taxation Office that their deduction is real, but there are some deductions where receipts are unnecessary or impossible to get.
The Australian Taxation Office understands this but is warning that taxpayers need to prove how they calculated all their deductions, usually with some form of written evidence or secondary record such as bank statements.
Home office usage, work-related car expenses and uniform costs are among the deductions that do not always require receipts.
The Australian Taxation Office will be watching closely, people claiming deductions without proof.
People can claim work-related deductions totalling up to $300 without receipts, but some taxpayers incorrectly believe they could make this standard claim even if they did not spend it.
Some tax deductions don’t require receipts, but will still need an explanation regarding the claim.
The following are some common items that might be claimed without a receipt:
• Fuel and petrol usage, as long as the taxpayer could demonstrate the number of work-related kilometres that they have travelled;
• Membership or union fees that could be itemised on the taxpayers PAYG summary;
• Computer items if the taxpayer had a credit card statement showing the purchase, and perhaps a photo of the packaging; and
• Stationery items if the taxpayer had a credit card statement and a note next to the purchase record.
Based on the above it is possible to claim various deductions without any proof, however is it best to have a collection of receipts and records just in case the Australian Taxation Office comes knocking at your door.