Most people understand the basic tax components of income and expenses, however, what some of you may not know is what you are able to specifically claim as a deduction. Here are some helpful tips on some deductions you may not be aware of but are eligible to claim.
1. Laundry – work-related washing, drying, ironing and laundromat costs can be claimed up to a maximum of $150 where total work expenses exceeds $300 for the financial year.
2. Home Office – where you perform work from a home office, costs incurred in running the office are deductible. Office equipment including electronics are deductible, however the cost of the item will determine the type of deduction available. Work related phone calls and internet usage can also be claimed along with heating/cooling, lighting and cleaning expenses to the extent they are used for income producing purposes. A set rate is used to calculate the latter expenses based on the number of hours used.
3. Self-Education – you can claim a deduction for self-education expenses when your course of study is directly connected to your current employment.
4. Work Assets – you may be able to claim a deduction for tools and equipment you use for work. Items that cost $300 or less may be claimed immediately.