Do I get all the money back I spent on work related expenses on my tax return?

“My friends told me that if I buy something for work then I get the money back on my tax return”. This old chestnut has been going around like a violent Flu.

Many students confuse the term “claim it on your tax return” with getting a refund of the money you have spent on your tax.

Fact:

Claiming an expense on your tax return will reduce your income that the tax is calculated on. We call this amount (Income Less Expenses), “taxable income”.

So what does this mean in real language?

It means that the sum of your total income will be reduced and the tax will be calculated on a lower amount. This normally means a reduced calculation of tax and could mean more money back into your pocket.

As you learned in the Myth #1 Blog, if you earn under $18200 then generally you will get all your tax back. This means that you don’t need to declare any expenses as they will not affect your tax return.

If you earn over $18200 then generally you will only get part of your tax back. This is when expenses come in handy to reduce your tax. Of course, the expenses must be work related but we will save that list for another post.

So there you have it! Now you know when you can claim expenses and how they will help your tax return. Now it’s up to you to spread the word.

Want an estimate of your tax refund before you get started?

Click HERE to use our instant tax refund calculator.

Claim your tax now by clicking HERE and entering a few details.