**Important** Individual Tax Return Deductions

General News: 26/06/2017

It’s important to know what you can deduct when it comes to your individual tax return, and how to best maximise your return. To claim a work related deduction, you must have spent money yourself without reimbursement and it must be work related.

Vehicle and Travel Expenses

You are able to claim vehicle and travel expenses if directly connected with work, with travel records being required. Regular trips from home to work are usually regarded as private expenses, however in some specific circumstances you are able to claim a deduction on this travel expense.

Clothing and Laundry

If your job requires a specific uniform, or your work wear requires regular laundry or dry cleaning, you are able to deduct these expenses on your tax return. Some jobs require specific uniforms or protective clothing. The cost of purchasing and maintaining these uniforms are tax deductible.

Home Office Expenses

If you at all work from home, you may be able to claim deductions on expenses such as telephones, computers or any items required to complete work, including running costs. For example, if working from home, telephone calls directly related to work are tax deductible and you are able to claim these expenses. You are also able to claim the running costs of equipment such as computers. If the computer is being utilised for work purposes, you are able to claim the costs incurred to run it.

Interest and Dividends

If you have received income from interest or dividends this financial year, you are able to claim a deduction on the expenses incurred earning this income. Income from an exempt dividend or any other exempt income is not claimable in your individual tax return. For example, you are able to claim account keeping fees if the account is held for investment purposes.

Gifts & Donations

To claim a tax deduction for any gifts or donation, the organisation in which this transaction has occurred must have the status of deductible gift recipients. The amount you can claim is dependent on the type of gift. If the gift is one of money, the deductible amount is the price of the gift.  Different rules apply if the gift is property.

Tools & Equipment

If your job requires the purchase of tools or equipment, you are able to claim a deduction for a portion or all of the cost. If the tools or equipment purchased is used for both work and private use, the deduction will need to be apportioned. Examples of tools and equipment that are tax deductible are computers, hand tools and power tools, desk chairs and calculators.

Self-Education Expenses

If you are required to study for work related reasons, in some circumstances you are able to claim a deduction. You are able to deduct self-education expenses if the course you undertake results in a formal qualification.

If you have any queries regarding your individual tax return, and the deductions applicable to yourself, please contact us at Mulcahy & Co.