Getting your taxes done is an important matter of legal compliance. And if you’re lucky, it could serve as a little pay day, if you’re entitled to a tax refund.
But an important question arises each year: “How should I get my taxes done?”
There are many options to get your tax return completed and lodged nowadays. You could do it yourself online, or on paper. You could use a tax agent either by visiting them in person, or doing it via correspondence.
You will ultimately have to make that choice each year when the time comes to lodge your return. Below is a consideration of these various options.
Use A Registered Tax Agent
You can uses the services of a registered tax agent. A registered tax agent is a qualified professional who specialises in completing and lodging tax returns.
The benefit of using a registered tax agent is that your tax return will be completed by someone who knows what they’re doing.
A tax agent will know how to properly complete and fill in your tax return. Importantly, a tax agent will know which deductions you can and cannot claim.
These days, you don’t even need to go and visit your tax agent in person. Many offer their services entirely online, or via email or phone. One such tax preparation service is Simply Tax. Simply Tax specialise in the preparation and lodgement of tax returns, and can do so online and via email.
Use The ATO’s Online System
This is the perfect solution if you have a very simple tax return. By simple tax return, I mean merely some PAYG income, a bit of bank interest, and a couple of deductions.
But for an individual who has had a capital gains event during the year, or a rental property, or a motor vehicle, or a depreciation schedule, then it is advised to use the services of a registered tax agent.
This is because MyTax isn’t very well designed for completing complex tax returns. The user interface is not that friendly, and completing various rental property schedules, business schedules, calculating depreciation and the like can become quite arduous on this platform.
Believe it or not, you can still lodge your tax return via paper. It’s not recommended, however, unless your return is very straightforward.
All you need to do is fill in the basic details (your name, your income, your deductions). Make sure you take a photocopy of it once your finished.
Once completed, simply send it to the ATO’s mailing address (which should be on your tax form).
Ultimately, the choice is to either use a tax agent or accountant to lodge your tax return, or do it yourself.
If your return is simple, you might as well do it yourself.
If it’s a more complex return, leave it to the professionals.
And keep in mind, when you use a registered tax agent, you’ll have a longer deadlines to lodge your return. An added benefit of lodging through a tax agent.