The Information and Documents You Will Need to Maximize Your 2020 Income Tax Return and Avoid Common Tax Pitfalls
With all the confusion and uncertainty in the world, you’ll be forgiven if you’ve forgotten that tax day is on 31 October. Knowing where to begin with gathering the information and documents that you will need to ensure that you maximize your deductions and avoid an unpleasant call from the ATO can be daunting. Luckily, Amour Accountants is here to help.
We have broken down the essential documents and information that you will need into three categories: income, deductions, and other items to consider. Read on to learn what you will need to ensure a smooth transition into the new tax year.
The cornerstone of any tax preparation is a complete picture of your income for the tax year. This includes obvious items such as your annual salary, but may also include less common sources of income like taxable scholarships. We have broken the income category into three subdivisions: employment income, financial markets and other business and investment income, and other forms of taxable income, so that you can easily determine which forms of income you will need to report.
All of the following types of employment income will need to be measured and reported:
It can be easy to forget about your investment income, particularly if you think of it as a primarily passive form of income. Before you have your taxes prepared, ensure that you know how much money you earned from the following investments:
Finally, there are a few less common forms of income that taxpayers often forget to include when calculating their annual income. These include:
Once you have gathered all your income information, you will need to determine whether you may be eligible for any deductions. There are two primary categories of deductions: specific and general. After checking the list below, you should be able to easily determine what deductions you may be eligible for and gather any paperwork you will need to provide to your accountant.
Finally, there are a few additional items that your accountant should know about to ensure that your tax return is complete. These items include:
Once you have gathered all of the relevant documents, don’t forget to call Amour Accountants. Our tax professionals will ensure that filing your taxes is as easy and painless as possible.