Some people are entitled to a tax refund if they overpaid tax through a job or business. There are some criteria that they must meet though in order to qualify for a reduction in taxes. If you a person meets the following criteria, then it’s possible that you might have overpaid your taxes and of course, will then be entitled to a refund. Read on to find out what the guidelines are so you can get the most from your tax return with these handy tax filing tips.
You Switched from Part-Time to Self-Employed
Some people are eligible for a tax refund if they changed their status from full-time or part-time to self-employed. Believe it or not many self-employed people often over-pay taxes because they do not take the necessary deductions. In this instance, any refunds may be received to compensate for the added expense of business ownership. For further information, it’s worth noting that travel expenses, business operating expenses and other related expenses may be included in the deduction of self-employed people when completing tax returns.
Started a New Job After Using an Emergency Tax Code
If an employee starts a job after using an emergency tax code, he or she may be eligible for tax deductions. Being aware of possible tax deductions can help employees. You should speak to your new company for advice as they will be able to help you complete the necessary paperwork and forms. Remember, that their human resources department are there to help you as much as possible – and the advice will be free so don’t be afraid to ask your employer.
Students May Receive a Tax Break
Students may be entitled to a refund if they were students for the full year prior to filing taxes. Only students who did not complete a form P38S or who only worked holiday times will be eligible for refunds. Again, you can get free advice on tax allowance for students from your college or university, many of whom will have someone in the student union who will know the ins and outs of student tax advice. One thing to consider is signing up to the Wall Street Journal Student Edition. Each issue contains advice for students on how to manage their money.
You Employer Used the Wrong Tax Code
If an employer used the wrong tax code during the year while deducting taxes, employees may be entitled to a refund. Verification of the practice will be required to be eligible. Because of this you should always keep hold of any payslips and forms that you receive when you move between jobs because the chances are you will need to provide proof of income when the wrong tax code has been used. Don’t worry if you can’t find them as typically they will be on digital file with your previous employer, but having the original copies yourself will save you time and having to get back in touch with your old previous company.
Unemployed People Tax Return Advice
People who were not employed for a portion of the year may be eligible for a refund. These people only had taxable earnings for a portion of the year. Accountants can help people determine eligibility – use Google to search your local area for cheap tax accountant. Typically you will probably be looking at a couple of hours of their time so find out what their hourly rate is before you proceed.
Redundant People Tax Filing Tips
People who were made redundant during a tax year may be eligible for a tax refund. These people will be eligible for further refunds if were given payments for redundancy. Redundancy payments typically make a person eligible for tax refund. Some local governments and councils do offer free tax advice for redundant people and/or those people that are currently in receipt of unemployment benefits or social security payments.
What About if You Are Working Two Jobs
People who are working two jobs may be eligible for tax refunds. Accountants should be contacted to determine how to take advantage of this situation. Again try to find yourself a cheap accountant because this kind of financial advice does not require any particular in-depth expertise and should be a very standard tax advice when working two jobs.
Alternative Income Reduced
Some people have an alternative income taxed through one tax code. If the alternative income is removed, the tax code may be too high. A refund may be given to compensate for taking a deduction through a higher tax code.
Learn How to Get the Most Out of Your Tax Return
You should be aware of potential situations where deductions may apply to get the most out of a tax return. Without an awareness of refund scenarios, people may not know deductions are possible. Overpayment of taxes ties up cash flow that could be used in other areas of business or personal finance. Learn how to get the most out of a tax return by contacting a tax professional.
Author Bio: Justin is one of the most sought-after South Sydney Accountants for preparing tax returns. He has been helping his clients get the most out of their returns for over 25 years. Justin is currently planning to take his long service leave and travel around the world with his wife. Please get in touch with him should you be based in the Sydney area of Australia and require further advice on your tax return.