Common Tax Mistakes and How to Avoid Them

Frequent Errors to Watch Out For

• Failing to Report All Income: Ensure you include income from all sources, such as wages, bank interest, investments, and gig economy earnings.
• Overlooking Deductions: Many taxpayers miss claiming eligible deductions, such as work-related expenses or industry-specific deductions. Use our Work-Related Deductions Guide
• Incorrect Information: Double-check pre-filled data and manually entered details for accuracy to avoid delays or penalties.
• Missing Deadlines: Lodge your return by the ATO’s deadline to avoid late lodgement fees. Set reminders using the Cado Tax app.
• Lacking Documentation: Keep receipts, invoices, and other evidence for deductions claimed. Use the receipt scanner feature in the app to stay organised.
• Claiming Ineligible Deductions: Only claim expenses that are directly related to earning your income and meet the ATO’s guidelines.

By being thorough and leveraging tools in the Cado Tax app, you can minimise errors and maximise your refund. The app’s built-in checks help flag potential issues before submission.

FAQs

What happens if I forget to include income in my tax return?

If you omit income, the ATO may amend your return, and you could face penalties. Always review your income sources thoroughly before lodging.

Can I claim deductions without receipts?

You can claim up to $300 in work-related expenses without receipts, but you must be able to explain the nature of the claims if audited.