Prior Years Tax Returns – 2 Tips to Prepare Your Prior Years Tax Return at Low Cost

Filing tax returns every year is a legal requirement by the state and the constitution. It is absolutely mandatory for every adult to file them each year whether or not they were employed or in university or on a year abroad. Sometimes, you may fail to file your taxes on time and it is possible to defer them and file them later in the same year or in the next tax year while filing your most current taxes. You may be wondering how to complete your taxes from prior years when you have not done them already. Here are two tips to help you prepare prior taxes easily and at a low cost.

Option 1 – Contact an experienced professional

If you usually go to see a professional accountant or a company to help you complete your taxes then you should first of all inquire with them about the possibility of filing your prior years taxes with them. This is the best way to file your taxes from prior years. Most accountants or organizations that handle tax returns have a process in place to process older taxes. Usually, it can be done at the same time you are filing your current taxes and sometimes depending on how complicated it is you may not need to pay a full fee for it. Keep in mind that those practices vary from one organization and accountant to another, however, the only way to find out the possibility and all the details is to inquire directly. That way you can also have the peace of mind that you are taken care of by a professional.

Option 2 – Use an older software

If you are one of the people who prefer to file their own taxes personally, then you should look at previous year’s software. As you can learn from Taxreturn247.com.au, most tax software allows access to the prior year’s software. This makes it much easier for you to file your returns and calculate your total refunds or payments. The cost associated with the previous year’s filing would be the same as your …


How To Get A Bigger Business Tax Refund

In addition to being important and a legal requirement, filing tax returns could actually be beneficial and result in good tax refunds. Many businesses are encouraged by the government and there are always ways in which a business can make money and increase its refunds. However, the process could be more challenging than one might think since many of the ways in which one can save money are not very evident. Moreover, business taxes can get complicated and there are many additional documents and details one should keep track of in order to be done correctly. Here are a few tips on how to get a bigger business tax refund.

Claim your home office space

If you work from home, you should be able to write off your business related home space on your tax returns. Many people in the past were hesitant about doing that because it would increase your chances of being audited, which is always difficult even you have evidence for everything you claim. However, now it is a lot more common for people to be working from home and it does not pose as much of a red flag anymore. In any case, you do need to make sure that anything and everything you claim is related to your work and can be proven to be so in the event that you are audited.

Furniture

In the first year after you buy furniture or electronics to be used in offices and for work related purposes, you can deduct 100% of those expenses when you are filing your taxes. You could also claim deprecation cost after 7 years of using the furniture. Run the numbers and see whichever gives you a better return. You can also deduct the cost of supplies.

Travel

Another major expense for business is travel. You may be pleased to know that you could also claim that expense. Airplane and train tickets, along with car mileage, meals, and outings with clients can all be claimed as business related expenses. You should check taxreturn247.com.au for more information on the different percentages you could claim …


Why people amend their Tax Returns

Filing your tax returns is one of the most important and most cumbersome tasks you have to complete. It is required by law and you need to make sure that all your documents are well completed and that you keep track of all the expenses and income you are making. Keeping that in mind you do not believe how many people end up amending their taxes because of some reason or another, despite crunching the numbers, and after filling out and comparing various returns.  Filing your taxes can be a huge relief and you do not need to worry about it if you discover that something was misreported. You can amend your taxes anytime even years after you have filed them. Some common reasons why people amend their returns include.

Report additional income

The main reason people tend to amend their taxes is to report additional income that was not reported in the previous year. Unreported income is considered a fraud and hence any kind of payment made in return for work should be reported and included in every tax return. These sums also affect the total taxes you are expected to pay, hence it is very important to amend your taxes whenever you find any possible problems on that front.

Claim tax credits

Claiming more expenses that can potentially result in higher tax credits is about the second reason why people amend their taxes. It is important to do so because it can decrease the amount of taxes you should pay and you can get more money as a result, which is always a great surprise. In addition to that claiming tax credits regularly can build up year after year and you want to make sure that those expenses are well recorded as well. More details here!

Clearing an error

Another important reason why one may choose to amend their taxes is if they were to find an errors or problems with the initial filing. Such a situation may occur if there have been amendments in the laws from the prior that the tax payer failed to learn. …