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Anybody using etax this year?

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kangaroo19

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This is my first year using the etax for my return and I have come to a little problem...

In claiming deductions, I have claimed $1100 car expenses using cents/km method, $150 for laundry, $150 for other work expenses. At the "lodgement" stage, it says I must have receipts for deductions greater than $300, even though the car method I have selected does not require documentation. On the tax site it says "The $300 limit does not include claims for car expenses etc"... Anyone claimed this method using etax, and is it just a glitch in the system, as I have no documentation for the deduction. Despite me only claiming the maximum $300 deduction for work, it still seems to include the car deduction...

Anybody come across this?
 
kangaroo19 said:
This is my first year using the etax for my return and I have come to a little problem...

In claiming deductions, I have claimed $1100 car expenses using cents/km method, $150 for laundry, $150 for other work expenses. At the "lodgement" stage, it says I must have receipts for deductions greater than $300, even though the car method I have selected does not require documentation. On the tax site it says "The $300 limit does not include claims for car expenses etc"... Anyone claimed this method using etax, and is it just a glitch in the system, as I have no documentation for the deduction. Despite me only claiming the maximum $300 deduction for work, it still seems to include the car deduction...

Anybody come across this?

Does it prevent you from lodging you return? If it doesn't, I'd just lodge it anyway and keep a copy of the reference from the tax site with your claim for your records. If you're audited, then I'd say you're covered as you've done your "due diligence" prior to lodging it.
 
kangaroo19 said:
This is my first year using the etax for my return and I have come to a little problem...

In claiming deductions, I have claimed $1100 car expenses using cents/km method, $150 for laundry, $150 for other work expenses. At the "lodgement" stage, it says I must have receipts for deductions greater than $300, even though the car method I have selected does not require documentation. On the tax site it says "The $300 limit does not include claims for car expenses etc"... Anyone claimed this method using etax, and is it just a glitch in the system, as I have no documentation for the deduction. Despite me only claiming the maximum $300 deduction for work, it still seems to include the car deduction...

Anybody come across this?


I use etax every year for my son and friends that require me to do their tax returns for them.
My son claims car expenses using the same method as you and has never been queried on it.
The documention for deductions is purely for the cost of laundry or purchase of work related items over the amount of $150.00. The car expenses are completely different as you can either use the log book method or the method that you use.
I have also been claiming the cost of mobile phone accounts for a friend that requires he use his phone whilst on the road. He has never had to produce any accounts as it has always been allowed in his line of work.
Hope that this helps you out.
 

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THere was an article in Crikey mailer written by a former auditor of the ATO.

The ATO decide each year to "pick on" certain professions and crack down on deductions.

He said, If you get a letter from the tax commisioner after you've lodged your return, throw it in the bin. It's just a scare tactic, especially when you are claiming legit deductions.

EDIT: Found the article -> http://www.crikey.com.au/articles/2006/07/07-1515-955.html
 
Pantsless said:
He said, If you get a letter from the tax commisioner after you've lodged your return, throw it in the bin. It's just a scare tactic, especially when you are claiming legit deductions.

Which could end you up in court if it's a section 264 notice. Not that you're likely to get one of them as a first contact, but if you bin the first few letters you might.
 
You won't need receipts, as long as you can substantiate your km claim (i.e. 3 trips to Sydney @ 400km return etc) your fine. It probably won't matter either way.
 
I declared very minimal deductions, well under $300 and got the same warning upon lodgement. Nothing to be concerned about.
 
mjhen3 said:
You won't need receipts, as long as you can substantiate your km claim (i.e. 3 trips to Sydney @ 400km return etc) your fine. It probably won't matter either way.

The way I look at it, you only need receipts if you're getting audited.:D

And for me, numbers bore me, but not tax time. I take it personally and treat it like a competitive sport.

Lidge vs The Tax Man

Score Check

Lidge 18 Tax Man 2

And by the way, etax worked well this year. Refund in the account in 8 days!
 
Lidge said:
The way I look at it, you only need receipts if you're getting audited.:D

And for me, numbers bore me, but not tax time. I take it personally and treat it like a competitive sport.

Lidge vs The Tax Man

Score Check

Lidge 18 Tax Man 2

And by the way, etax worked well this year. Refund in the account in 8 days!

36 hours for me last year!!
 
kangaroo19 said:
This is my first year using the etax for my return and I have come to a little problem...

In claiming deductions, I have claimed $1100 car expenses using cents/km method, $150 for laundry, $150 for other work expenses. At the "lodgement" stage, it says I must have receipts for deductions greater than $300, even though the car method I have selected does not require documentation. On the tax site it says "The $300 limit does not include claims for car expenses etc"... Anyone claimed this method using etax, and is it just a glitch in the system, as I have no documentation for the deduction. Despite me only claiming the maximum $300 deduction for work, it still seems to include the car deduction...

Anybody come across this?

Sorry K19, but yes you do need to substantiate every dollar of deduction if you claim over $300. So if you lodge your return with the KM at $1100 you will need to have proof that the 2,000 odd KM's you say you traveled for work were actually work related. You will also need to have receipts for the laundry & other work expenses.

I am saying you will need to substantiate - this is only the case if you get audited. The chances of this are remote, however if you do get caught then you will not only have to repay the tax, but also will have to pay penalty tax (or a fine - same $hit) which could be quite high depending on whether the taxman believes that you have made a genuine mistake or were deliberately trying to put one past him. It will also significantly increase the chance of you being audited again in the very near future...
 

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