When was the last time you checked your old tax returns?
Overdue Tax Returns can be a headache, particularly if you’ve missed lodging for several years. But what if you’ve lodged everything and now wonder whether you claimed all the deductions you were entitled to? Either way, reviewing your tax history could be worthwhile. At Hills Accounting, your tax accountants in Hobart can help you understand your options and work out what needs attention.
Haven’t Lodged a Tax Return for Several Years?
It happens more often than you might think.
Perhaps you’ve changed jobs, experienced financial difficulties, lost important paperwork or simply put your tax returns aside while dealing with other priorities.
Before you know it, one missed year has become three or four, and the thought of catching up seems overwhelming.
The good news is that you can still lodge tax returns from previous years, even when the original deadlines have long passed.
The Australian Taxation Office (ATO) provides access to prior-year tax return information, and a registered tax agent can help you prepare outstanding returns using the requirements that applied to each financial year.
Depending on your circumstances, penalties or interest may apply. However, leaving those returns unfinished won’t make the problem disappear.
Could You Be Owed Money From Previous Years?
Here’s something many people overlook.
An outstanding tax return doesn’t automatically mean you owe the ATO money.
If tax was deducted from your wages during those years, you may actually be entitled to a refund.
Of course, that depends on your income, deductions and other circumstances. You won’t know for certain until the figures have been reviewed.
And what if you’ve lost your old records? Some information may still be available through the ATO, former employers, banks and other organisations.
Already Lodged? What If You Missed Some Deductions?
This is where things get interesting.
Perhaps you completed your tax returns yourself, but later realised you hadn’t claimed legitimate work-related expenses.
Maybe you overlooked professional subscriptions, eligible work-related travel, home office expenses or other deductions relevant to your circumstances.
You may be able to amend a previously lodged tax return to correct those omissions.
However, there are important time limits.
For most individual taxpayers, the standard amendment period is two years from the day after the ATO issues the notice of assessment.
Some taxpayers have different amendment periods, and there may be other avenues available in certain circumstances after the usual deadline has passed.
Can You Claim Deductions From Several Years Ago?
That depends on whether you’re lodging an outstanding return or trying to change one you’ve already lodged.
When preparing an old, unlodged return, eligible deductions for that particular financial year can generally still be included, provided you meet the applicable rules and have appropriate evidence.
If the return has already been lodged, the amendment time limits become important.
Remember, deductions must be legitimate and supported by appropriate records. You can’t simply estimate expenses because you think you probably incurred them.
Is It Time to Give Your Tax History Another Look?
Whether you’ve missed several years of lodgments or suspect you’ve overlooked deductions in previously lodged returns, getting professional advice can help you understand where you stand.
At Hills Accounting in Moonah, we can help review your tax history, identify outstanding obligations and determine whether previous returns may need attention.
You might discover there’s less to worry about than you thought — and possibly something worth claiming.
Why not get those old tax returns sorted once and for all?
Have You Missed a Recent Tax Deadline Too?
If you’re behind with your current tax obligations as well as older returns, it’s worth getting everything back on track. Our earlier article, Missed the Deadline? Don’t Panic, explains what happens when tax deadlines slip by, including possible ATO penalties and interest charges, and offers practical tips for avoiding further problems.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs.
For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.
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