Pitfalls in getting tax return lodged too early
THERE has been a big jump in the number of those rushing to grab a fast tax refund, but there’s a potential sting.
Tax specialists warn that being quick off the mark can result in costly errors because technology is likely to spot undeclared income.
Annual payment summaries from employers are not due until July 14, while the Australian Taxation Office’s pre- filled data such as bank interest and share dividends may not appear on electronic returns until mid- August.
ATO figures obtained by News Corp show that about 300,000 individuals and tax agents lodged electronic returns in the first week of July, up 20 per cent on last year.
“More than 20 per cent of lodgements have been via a mobile device,” ATO assistant commissioner Kath Anderson said.
She said the ATO contacted 350,000 people each year about errors in their tax returns.
“One of the most common mistakes we see is people forgetting to declare all their income,” she said.
“We know that taxpayers like to get in early and lodge in the first month of tax time, but our analysis shows that if you lodge in July you’re far more likely to make a mistake by leaving out some of your income.”
Ms Anderson said people should remember to include all income including wages, interest and dividends, income from the sharing economy, government payments, income from cash jobs and capital gains.
Almost four out of five taxpayers receive a tax refund, averaging more than $ 2500.
MoneysaverHQ: p18- 19