How to use your tax refund money effectively

It’s a great feeling when you get a check or money deposited into your account, especially if it’s a tax refund. However, how can you make your money work for you? We’ve put together a list of our favorite things you can do to make your money worthwhile.

Put the tax refund money into a savings account

Fiscal experts advise around 7 months’ worth of your salary in a bank account. This would be put towards a big spend or for an unexpected circumstance that requires a large sum of money. This would include but not be limited to unexpected dismissal or redundancy, change in financial circumstances or loss of property.

If you don’t have one already, you should open an account and gradually build it up. Your tax refund money will increase the account substantially.

Buy the essential things your house needs and get your car fixed

Have you had your eye on a particular kitchen, bathroom or bedroom item but unable to purchase it? You can use your tax refund to pay part or in full for a new mattress, washing machine or other item. You could also use the money to get your car maintained whether it needs to or not- it will save you a massive bill in the long run and may even help avoid future breakdown costs.

Pay off essential bills or outstanding payments

Have you looking at your mounting credit card or mortgage bill? Your tax return money is an excellent opportunity to pay off some outstanding loans or bills, whether it’s a student loan, a mortgage, credit card bill or other. This will save months of repayments and will increase your credit score.

Start a business

In the past, registering to become a business used to be a momentous decision, financially and mentally, since it took months to be approved and begin. Nowadays it is far easier and more hassle-free to start your own business. It could be a bakery, an e-commerce site or a software consultancy. Using the tax return money, you can put down some capital money for it. We suggest having at least $15,000 or more minimum before taking the great leap towards starting your own business. Check here !

Alternatively, similar to the point above, it could also go towards some much needed stock, appliance, upholstery or other equipment for the business.

Invest in some stocks and shares

Using your tax refund money to invest in some shares would be a financially wise decision. It’s now easier than ever to set up a portfolio, have a fund manager and start investing. The fund managers can also manage your account for you. They can also advise you which markets to invest some of your tax return money. Be aware that using your tax refund money to invest should be always thought about as a long-term commitment.

Conclusion:

There are so many ways to use your tax money effectively and which could have positive effects in the long term. You could put it into a bank account, pay off outstanding bills and credit, start a business, buy new appliances or invest in shares. Whatever you do, you should look into benefitting the most out of your tax return money. Find out more in this site : http://www.taxreturn247.com.au

Six Frequently Asked Questions about the Unfiled Tax Returns

Tax Tips

Q # 1 – How does Unfiled Tax Return work?

Answer: There are three main steps for working of the Tax Return.

  • Submit GET STARTED form

One of the Consultants is always ready to take the calls of customer on spot for a spontaneous phone interview or to book you a suitable time according to your choice.

  • Submit your Tax Returns over the phone

Tax interviews will be conducted by one of the qualified accountants. For further information and guidance regarding receipts, you can have an option to send via Fax, Email or MMS.

  • Sign off and wait for Refunds

After receiving sign off authorization, one copy of return is sent to your email and tax refund would be received within few days.

Q # 2 -Are you really available 24 hours every day?

Answer: Yes we hold bookings any time in the day with some conditions like all the required relevant information should be uploaded in time. Weekends are also working. Any claim about tax refund can be done anytime anywhere.

Q # 3 –If I am a Backpacker leaving Australia then how can I claim my refund now?

Answer: If you are leaving Australia permanently and you are entitled to claim refund back at the end of financial year. The Australian tax year runs from first July to thirty June every year. If you are about to leave Australian permanent basis in a tax year, you can apply before end of the tax year for assessment. After leaving, you don’t have to wait for the completion of tax year. More details in this post: http://www.allmomshops.com/tax-refund-identity-theft/

Q # 4 –What is NON resident for tax purposes?

Answer: When you have to arrive in Australia and apply for Tax file number, Australian tax office will assume that you are a ‘NON resident for tax purposes’. As main objective is to do some incidental work and see the country. All of it is done to fund the whole trip and unlikely to stay in one place for some period of time or rent some private accommodations but stay in hostels. Many of people stay in Country for up to two years. They work for employers for several months and stay in same place and probably rent a room or flat. A very important note is that Tax residency might won’t be same a residency for visas.

Q # 5 –How quickly can I receive my tax refund?

Answer: Generally it can take up to two weeks for the ATO to process all of your return.

Q # 6 –How many deduction can I claim?

Answer: Some common deductions claimed are vehicle and travel expenses, clothing, laundry and dry-cleaning expenses, Gifts and donations, some home office expenses, various Interests, dividend and other investment income deductions, self-education expenses, tools, equipment and other assets and some other deductions. For more detailed and comprehensive list of deductions, an appointment can be booked with one of tax consultants any day.

Bankruptcy and Tax Refunds – 5 Things to Know

Bankruptcy and Tax Refunds

The realization that you may have to declare yourself bankrupt can be scary, but if you know where you stand from the beginning it can take some pressure off. There are a few things you need to know before filing for bankruptcy, like how it will affect your accounts and tax refunds, for example.

Get some advice

If you have many creditors approaching you and pressurizing for payment, bankruptcy may seem like an attractive option, if you can avoid it though, do. It stays on your credit history for some years and can in some cases become a permanent blemish on your records. Before taking the route of bankruptcy speak with your creditors, you may be able to reach an agreement which allows you longer to repay your debt, or they may reduce your payment amount for several months while you get back on your feet.

Bankruptcy is my only option. What next?

• Speak with your bank or financial institution, if you have funds in an account and you also owe them some money your bank or credit union retain the rights to keep the amount in your account to repay your debt. All funds you have from your date of declaring yourself bankrupt become the trustees.

• They may allow you to open new accounts, or keep your existing account as long as they wish to retain you as a customer. Speak with them and explain your situation, if you don’t have debts with them and they are aware of your bankruptcy, they may change you to a more basic bank account with no reserve, this will allow you to start rebuilding your credit without getting into further debt.for more details, visit http://www.chicagotribune.com/business/ct-personal-finance-ways-millennials-can-fatten-their-tax-refunds-20160406-story.html

What about my Tax Refunds?

• There are many aspects to take into consideration, for example if your after tax income exceeds a specific figure, you will have to pay the contributions to your trustee from your income. If you don’t earn enough to be able to action these, you can make low income contributions voluntarily.

• If you have a debt due to your local tax office, they have the authority to keep any tax refunds. If they do not keep them they now belong to the trustee. Any tax refunds which are due to you after your bankruptcy date are treated as income for the purposes of contributions.

Bankruptcy and Tax Refunds

• Also any superannuation payments received prior to the date of bankruptcy become the property of the trustees on the date you declared yourself bankrupt. Regarding superannuation payments received after the date of bankruptcy – you may be entitled to keep them but they could be subject to certain criteria or limits.

If you find yourself in this situation, don’t ignore it. If you are put in a position where you have to file for bankruptcy and need assistance with tax refunds and tax returns, contact Taxreturn247.com.au they are able to assist with all of your questions and will advise on the best way to proceed with your local tax authorities.