“Tax time can be an easy and straightforward experience if you know what income to include and what COVID-19 expenses you can claim on your tax return.”
Although COVID-19 tests are free for people with symptoms, if taxpayers have to pay for a work-related test, they can claim the cost from their deductions.
To claim the cost of a test, taxpayers must have a record showing that they have paid for the purchase, such as a receipt or invoice. When no receipt or invoice is available, the ATO will accept reasonable evidence, such as a bank statement or credit card statement, or evidence from an employer.
Evidence performed by employers or evidence for which the worker has already been reimbursed cannot be claimed.
Deductions for gloves, masks
Mr Loh said tax returns could only claim the evidence needed for work-related purposes, but taxpayers could also claim a deduction for the cost of items that protect against the risk of illness or injury while doing so. work tasks.
“If you are spending your day working close to customers and at risk of contracting COVID-19, you can claim a deduction for protective items such as gloves, masks or disinfectant. This will be more common in industries such as retail, cleaning and hospitality “.
The number of people claiming work-related deductions grew from 3.14 million in 2018-19 to more than 4.39 million as the pandemic hit.
About one in three used ATO’s COVID-19 extended shortcut method to claim the costs of working from home last year.
The 80 ¢ per hour method is all-inclusive and covers all work-from-home costs, including cleaning, cooling, heating and lighting costs, home office equipment depreciation, technology cost amortization, and telephone and internet.
The traditional method of claiming specific deductions is still available, but requires receipts, paperwork, and other records. The shortcut method only requires a record of hours worked, such as newspaper entries or timesheets.
The shortcut method will end in 2022.
JobSeeker payments are subject to tax, and the required information will be automatically filled in on your tax returns, under the label “Government Duties and Payments.”
Taxpayers are not required to include COVID-19 disaster payments related to containment and health restrictions, but payment for pandemic license disasters is subject to tax.
The ATO said the payment should be included in the income tax returns for the year in which the amounts were received.
“While the information is not pre-filled for you, not adding Pandemic Disaster Payments to your tax return will delay the processing of your return and your potential refund,” Loh said.
The March federal budget included about $ 5.6 billion in temporary cash measures targeted at the pockets of the hip, including $ 420 tax compensation for about 10 million taxpayers.