In recent years, doing your taxes online has become increasingly popular. However, there are also some potential pitfalls to be aware of when lodging your taxes online. In this article, we’ll explore some of the most common pitfalls and how to avoid them.
1. Security Concerns
One of the biggest concerns when it comes to doing your taxes online is security. When you lodge your taxes online, you’re entering sensitive information such as your tax file number, bank account information, and other personal details. This information is valuable to hackers and identity thieves, so it’s important to take steps to protect yourself.
To avoid security pitfalls, make sure you’re using a secure internet connection when lodging your taxes online. Avoid using public Wi-Fi networks or unsecured connections. Additionally, make sure you’re using a reputable tax preparation software or website that uses encryption to protect your data.
2. Technical Issues
Another potential pitfall when lodging your taxes online is technical issues. If you encounter technical problems while filing your taxes, it can be frustrating and time-consuming to resolve them. Technical issues can range from slow websites to error messages that prevent you from lodging your taxes.
To avoid technical pitfalls, make sure you have a reliable internet connection and a computer that meets the minimum system requirements for the tax preparation software or website you’re using. Additionally, try to lodge your taxes during off-peak hours when websites are less likely to be overloaded with traffic.
3. Incorrect Information
Lodging your tax online can also lead to mistakes or incorrect information being submitted. This can happen if you’re not familiar with the tax laws or if you rush through the process without double-checking your work. Common mistakes include entering incorrect our outdated personal, forgetting to include deductions or credits, and failing to report all of your income.
To avoid submitting incorrect information, take the time to review your tax return carefull before submitting it. Double-check all of your personal information, deductions, and credits to make sure everything is accurate.
4. Lack of Personalized Advice (the key issue)
When you lodge your taxes online, you don’t have the benefit of a tax professional reviewing your return and providing personalized advice. While tax preparation software can be helpful in guiding you through the process, it’s not a substitute for professional advice.
To avoid the lack of personalised advice, consider hiring a tax professional to review your return before submitting it. A tax professional like Accountants Direct can help identify deductions and credits that you may have missed and provide advice on how to minimise your tax liability.
In conclusion, while lodging your taxes online can save you a little money, there are also many potential pitfalls to be aware of. By seeking professional advice you can avoid these pitfalls and lodge your taxes with confidence.
Accountants Direct is not an online tax service. We offer individualised advice on all tax and accounting matters. Call us today on 1300 TAX SHOP or book on our website.
Stephen is the CEO of Accountants Direct and is a Professional Director, ASIC Agent, Startup Advisor & Investor & Capital Raising Specialist.
Contact Stephen or his team if you have any questions about this post or any business matter in general.
