Student Tax Hacks: Maximising Your Education Deductions This EOFY
Tax time doesn’t have to be stressful, especially when it comes to your education expenses. As a student, you may be eligible for tax deductions that can put extra money back in your pocket. But navigating tax claims can be tricky - so let's break it down and help you stay organised for EOFY.
How to Make Tax Time Work for You
Whether you're paying for textbooks, course fees, or travel expenses, there are opportunities to reduce your taxable income by claiming education-related costs. But what exactly can you claim? It all depends on how your studies are connected to your job. If you're enhancing your skills for your current role or increasing your income potential, you're likely to be eligible for a tax deduction.
Think of it like this: Tax time doesn’t just have to be about what you owe. It can also be about what you get back. With the right preparation, you can ensure you’re making the most of your education-related expenses and getting back more than you expected.
Navigating Your Claims: What You Can Do to Prepare
Here’s a simple step-by-step guide to getting started, without the headache:
- 1. Get Set Up with MyGov: To claim your self-education expenses, you’ll need a MyGov account linked to the ATO. It's a quick setup and will be your portal for claiming your deductions.
- 2. Know What You Can Claim: Focus on what’s related to your education journey - tuition fees, textbooks, and even travel costs might be on the list, if they’re linked to improving your current job skills.
- 3. Submit Your Claim Online: The ATO makes it easy to lodge your return through MyGov. Once logged in, just navigate to the ATO section, fill in the self-education expense section, and you’re good to go!
Maximising Your Tax Return with Education Expenses
While there are plenty of claims you can make, it's key to focus on the expenses directly tied to your education and career. Some of the most common ones include:
- Course Fees: If you’ve paid for your course yourself, those fees can be claimed.
- Textbooks and Stationery: All those study materials you rely on - whether it’s textbooks or pens - can be part of your deduction.
- Internet and Phone Costs: If you’re using the internet or your phone to study, you can claim part of those expenses too (but not connection fees).
If you can demonstrate a clear link to your education and career development, these are fair game.
5 Smart Tips to Keep Your Tax Sorted All Year Long
- Track Your Expenses as You Go: Rather than scrambling for receipts at tax time, use an app like my Deductions to keep a record throughout the year. This can save you hours of frustration when it’s time to file.
- Start Early: Don’t leave it to the last minute. Mark your calendar with a reminder a month before EOFY to gather everything you need. This gives you a head start and reduces any last-minute stress.
- Organise Your Receipts and Documents: Staying on top of your receipts makes a huge difference. Create an electronic folder where you can easily save photos or scans of receipts for textbooks, travel, and fees. Keeping things neat now will save you time later.
- Use Technology to Your Advantage: There are plenty of apps out there that make managing finances and education expenses simple. Apart from my Deductions, tools like Xero or QuickBooks can help you track your spending and stay organised year-round.
- Ask for Help When You Need It: If taxes are feeling overwhelming, don’t be afraid to ask for help. An accountant can ensure your claims are correct and maximise your return.
Your Education Can Work for You This Tax Season
Instead of seeing tax season as just another deadline, view it as an opportunity to get back some of the money you’ve spent on your education. With a bit of organisation and some thoughtful planning, you can make sure you're claiming all the deductions you’re entitled to.
Looking for more tips on managing your career and finances? Check out Upskilled’s SkillsTalk for helpful advice on personal finance, career development, and more.
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