It’s tax time! It pays to learn what work-related expenses you can claim
Lodging your tax return is easy if you have everything you need at the ready.
This year, you may be able to claim work-from-home expenses relative to COVID-19 – details below
When completing your tax return, you may be able to claim deductions for some work-related expenses.
It is really important to be aware that to claim a work-related deduction:
- you must have spent the money yourself and weren’t reimbursed
- it must be directly related to earning your income
- you must have a record to prove it.
If the expense was for both work and private purposes, you can only claim a deduction for the work-related portion. Deductions for Teachers and Education Support Staff may include:
- union fees
- travel expenses
- clothing expenses
- self-education expenses
- home office expenses
- phone expenses
- tools and equipment
- other expenses.
Working from home expenses
COVID-19 may have changed your normal working arrangements. If you have been working from home, you may have expenses you can claim a deduction for at tax time.
Tracking these expenses can be challenging, so from 1 March to 30 June 2020, the ATO have introduced a temporary shortcut method. It’s a simple way to calculate these expenses with minimal record keeping requirements. The ATO may extend this period, depending on when work patterns return to normal.
In most cases, if you are working from home as an employee, there will be no capital gains tax (CGT) implications for your home. You can read more here:
https://www.ato.gov.au/general/covid-19/support-for-individuals-and-employees/employees-working-from-home/
You are accountable for your claims
You are accountable for the claims you make in your tax return, even if you use a registered tax agent to prepare and lodge it on your behalf. Please be aware that there is no such thing as a standard deduction – this is a myth. There’s no ‘safe’ level to claim a deduction where you haven’t spent the money or it’s not related to earning your income. You must keep records to prove your claims.
The best time to lodge your tax return is mid-August, when all financial information the ATO receives from employers, banks, government agencies and more, will be pre-filled. You must also remember to declare all income when lodging your tax return.
For more information or to download the Teachers work-related expense guide go to The Australian Tax Office website via this link.
