Taxpayers are reminded not to make the mistake of ‘double dipping’ on deductions (that is, claiming expenses twice) in their tax return this year. Some of theses ‘double dipping’ mistakes include:
Working from home expenses
A common mistake involves using the ‘shortcut method’ to claim working from home expenses and then claiming additional amounts for expenses such as mobile phone and internet bills, as well as the decline in value of equipment and furniture.
The working from home shortcut method is all-inclusive.
Car expenses
A common mistake involves using the ‘cents per kilometre’ method to claim car expenses, and then double dipping by separately claiming expenses such as fuel, car insurance, and registration. The cents per kilometre rate is all-inclusive and already covers decline in value, registration, insurance, maintenance, repairs, and fuel costs.
Reimbursed expenses
Taxpayers cannot claim expenses that have already been reimbursed by their employer.
To read the full article by Accounts Daily, visit Double-dip and risk an audit.