Tax Return Checklist 2021: How To Prepare Taxes for Individuals?

August 31, 2021    accountantinperth

People are often fretting over getting prepared for taxes, what they have to provide, and when they lodge their taxes. Too much confusion, isn't it? In today's article, we will discuss a detailed individual tax return checklist 2021, which most taxpayers need to know.

Having all the necessary information makes the tax return process incredibly straightforward. In case your tax return is a bit convoluted, this tax return 2021 checklist will ease the entire process.

So, to help you dig into your memory and find all the relevant documents for your taxes, we have prepared valuable tax return checklists tailored for individuals. Let's get started with all the relevant information!

Tax Return Checklist 2021: All the documents you require for Lodging your Tax Return

Use this checklist and crosscheck everything to make sure you are not missing out on anything, which could cost you money. Also, make sure that you aren’t forgetting anything important, which could also land you in trouble with the Australian Tax Office (ATO). The tax return 2021 checklist includes:

Your income

This incorporates your investment income, annual payment summaries, lump-sum payments achieved, and other earnings.

The fundamentals

It includes your income statement and tax file number (TFN), along with other things.

Deductions

The crucial information of work-based expenditure you desire to claim, capital and receipt losses.

Let's dive deeper into more information on each of these pointers mentioned above.

Tax Return Checklist 2021

Here, we have diligently compiled a tax preparation checklist of some pre-return details you might require to combine:

Fundamentals

  • Bank details, including account holder name, bank name, BSB, and account number.

  • Tax File Number (TFN).

  • Precise details of children.

  • Previous year's Income Tax Evaluation.

  • A requirement for Medicare number for various medical expenditures.

Income

You should garner all the documents, which assure the money you have acquired during the previous year.

  • Wages, amenities, tips and directors fees, gross salary, allowances, and earnings.

  • Statements of invested or received dividends and income from the managed funds.

  • Your spouse's earning and expenditure details.

  • Precise details on foreign incomes.

  • CGT asset sales details, including real estate and shares.

  • PAYG Payment synopsis or Income Summaries are available throughout MyGov.

  • Any interest gained from building societies or banks.

Deductions

The deductions help in lowering your taxable income, which indicates a reduced tax bill. One of the significant considerations for claiming deductions is documentation.

Therefore, it safeguards you from being audited and minimize your tax bill by assisting you in recalling what to claim. However, garnering those records might take some time, but it's worth paying off!

The tax return checklist 2021 for deduction criterion for the individuals are shown below:

  • Receipts for donations or gifts of $2 and more than that.

  • Non-recuperated before year losses.

  • Property expenses and investment.

  • Income protection Insurance Premiums.

  • Medical receipts.

  • Crucial deductions, including investment shelters, Australian films, and agri-business type schemes.

  • Any superannuation contributions made for the self-employed persons.

  • Receipt for employment-based expenses, including self-education, uniform, and laundry expenses, work-oriented motorbike, protective accessories.

  • Home office expenditures where employment needs the usage of PC, smartphone, and internet connections.

  • Subscriptions based deductions, which don't incorporate social clubs or sports.

Read more about : Tax Deductible Expenses In Australia That You Should Know

Rebates

A tax rebate is mainly a refund process, which you are eligible for if the taxes you have paid surpass your liability. The tax offsets directly cut down the tax payable amount on your taxable income. Therefore, the criterion for tax rebates are shown below:

  • Debt details of HECS-HELP.

  • Superannuation contribution details where zero tax deduction can be insisted

  • Precise information of any income acquired in a lump sum amount, which was previously accrued in the income years of assessable pensions

  • Private annual statement of health insurance

  • Exact details of any remote work performed for over 183 days

  • Any specific alterations in the dependents' case include children's birth date and any particularly applicable Centrelink amenities. Moreover, the spouse's financial reports must also be provided.

Rental Property Expenditures

In this individual tax return checklist, you need to upload any documents to help a taxpayer prepare your tax return.

  • Interest

  • Advertising expenditures

  • Land tax

  • Water or council rates

  • Authentic maintenance and repairs

  • Telephone expenses

Others

  • Sun blocking items

  • Trade tools

  • Superannuation contributions

  • Fees of the tax agent

  • Business telephone expenses

How to Prepare Taxes for Individuals?

Step 1: Confirm if you need to file an Australian Tax Return

International students in Australia can exclusively claim their tax back by filling the return form. In case you are an international student whose source of earnings come from Australia, they must file a tax return.

Step 2: Decide your Residential Address

The international student individuals are liable for tax returns if they have been in Australia for more than 6 months. They will be eligible for the approx $18,200 tax-free threshold in a year. Moreover, they can claim a tax refund on 30th June as the Australian Tax year runs from 1st July to 30the June.

Step 3: Understand what earnings you need to declare

Individuals in Australia don't have to declare foreign income on their tax returns. In the tax preparation checklist, they only need to declare the income they earn in Australia.

Step 4: Garner the Documents that you require for a Return

To get prepared for taxes returns in Australia, the individuals have to go through the necessary documents for submission.

Step 5: File before the deadline to avoid penalties

Get all the documents ready before the deadline approaches, i.e. 31st October. So, please make sure you have filed your taxes before this date.

Concluding Words

So, before you start preparing your taxes, skimming through the list will help you understand the indispensable requirements. You might be astonished how it could be so hassle-free for preparing taxes for individuals. Hopefully, this article provides all the relevant information, which you should follow to omit any minute errors.

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