Receipt collection reaps rewards
PARENTS of children going to school are being reminded that good receipt collecting can be turned into income tax returns.
H&R Block has issued its top five tips to assist families preparing for their 2011 tax returns.
Regional director Frank Brass said hundreds to thousands of dollars of legitimate family education expenses were often not claimed, because taxpayers were simply unaware of eligible deductions.
“H&R Block has put together the top five areas of tax deductions for families with kids at school. The list is not exhaustive, but it shows the significant deductions available to families with kids at school,” Mr Brass said.
Top Five Deductions
1. Refundable Education Tax offset of 50% for educational items such as books, stationary, software, computers and internet. Up to $780 for primary school students, and $1558 for secondary school students. Families must qualify for FBT Part A (start collecting receipts for school uniforms for your 2012 tax return).
2. Kids’ medical expenses contribute to health care deductions. You can claim 20% for expenses exceeding $2000 for out-of-pocket health care costs.
3. If you bought Income Protection Insurance to protect your family income from unexpected absence from work, it is deductible.
4. If you bought an iPad or other ‘tablet’ computer for educational use, it is treated like a notebook computer and is eligible for the Education Tax Offset.
5. Remember contributions to an eligible school building fund or library ‘trust’ are tax deductible.