The Top 5 Forgotten Tax Deductions for Health Professionals

With tax deadline coming up, it’s a good time to think about deductions – particularly deductions that are frequently missed when preparing your return.

We asked Tax Expert, Luke Casley from Morris Cohen Glen & Co – “What are the top 5 forgotten deductions on individual tax returns?” – That is, all those deductions people can claim but often forget or don’t even know about.

Take a look below – do any of these deductions apply to you? Are you keeping the right records to make sure you get the best possible tax refund?

1. Cost of managing your tax affairs

Did you use a tax agent to prepare your tax return last year? If you did then you can claim the amount you paid in this year’s tax return.

2. Union/membership fees

Are you part of the AMA? How about other associations and membership expenses? If you pay union or membership fees and they are related to your current occupation, then you can claim the cost of these.

3. Work-related car expenses

If you use your car for work, you could claim work-related car expenses on your tax return. To claim these expenses, you should know or estimate the ‘business kilometres’ you have travelled.

The ATO defines business kilometres as kilometres travelled in your car in the course of earning assessable income. Remember, you must be the owner of the car and you can’t claim the cost of driving from home to work or vice versa.

Claimed travel must be part of your working day – e.g. between hospitals or from one job site to another.

There are different methods for calculating your work-related car expenses. Depending on your circumstances, one may be better than the other. If you’re not sure which method to use, please contact us and we can discuss which method suits you best.

4. Home computer use

Do you ever work from home? How about checking and responding to your work emails at night or on the weekend? Or are you checking next week’s work roster? If you do, then you may be able to claim the cost of using your personal computer as a tax deduction.

Bonus Forgotten Deduction – Internet Expenses

If you ever work from home and your internet connection is in your name, then it is likely you could claim your internet expenses as a deduction. How? Simply estimate your monthly work use as a percentage of the total household use.

5. Mobile phone expenses

Do you use your mobile phone for work purposes? Are you sometimes required to call patients or other staff members on your personal mobile phone?

If you answered yes, then you can claim the cost of these calls as a deduction on your tax return. Remember, you can only claim the cost of your work related calls, not your entire phone bill.

Is it worth it?

Absolutely. By being aware of these deductions you can reduce the amount of your salary that is taxed, resulting in more money in your pocket and less going to the taxman.

The above comments are general comments only and do not constitute or convey taxation advice. Changes in legislation may occur quickly and we therefore recommend that formal advice be sought before acting in any of the areas.