Student Tax Return Tips: A Friendly Guide to Getting It Right

Filing a tax return can feel like a daunting task, especially when you're juggling studies, part-time work, and everything else life throws at you. But don’t worry - we’re here to make it simple and straightforward. Whether you’re working casual hours or just starting your first job, understanding how to handle your tax return can save you money and stress. Let’s dive into some practical student tax return tips that will help you get the most out of your tax return in Australia.

Why Student Tax Return Tips Matter

When you’re a student, your financial situation can be a bit different from others. You might have income from part-time jobs, scholarships, or even some freelance gigs. Knowing the right steps to take when lodging your tax return means you won’t miss out on potential refunds or accidentally pay more tax than you need to.

Here’s why these tips are important:

• Maximise your refund: Claiming the right deductions and offsets can boost your refund.

• Avoid mistakes: Simple errors can delay your return or cause issues with the ATO.

• Stay compliant: Understanding your obligations keeps you on the right side of the law.

• Save time and stress: Knowing what to do makes the process quicker and less overwhelming.

  
  

By following these tips, you’ll feel more confident and in control of your finances.

Student preparing tax documents at a desk

Essential Student Tax Return Tips You Should Know

Let’s get into some of the best tips that will help you navigate your tax return smoothly:

1. Keep Good Records

One of the easiest ways to make tax time less stressful is to keep all your receipts, invoices, and payment summaries organised throughout the year. This includes:

• Pay slips from your employer

• Receipts for work-related expenses (like textbooks, stationery, or uniforms)

• Bank statements showing interest earned

• Records of any scholarships or grants received

  
  

Using apps or folders to store these documents can save you heaps of time later.

2. Understand Your Tax File Number (TFN)

Your TFN is your unique identifier for tax purposes. Make sure you provide it to your employer to avoid being taxed at the highest rate. If you don’t have a TFN, apply for one through the Australian Taxation Office (ATO) website as soon as possible.

3. Lodge Your Tax Return on Time

The tax year in Australia runs from 1 July to 30 June. You need to lodge your tax return by 31 October unless you use a registered tax agent, who may get you an extension. Filing on time helps you avoid penalties and get your refund faster.

4. Use the ATO’s Online Services

The ATO’s myGov portal is a great tool for students. It pre-fills much of your information, making it easier to check and submit your return. Plus, it’s free and secure.

5. Don’t Forget to Declare All Income

Even if you only worked a few hours or earned a small amount, you must declare all income. This includes casual jobs, freelance work, and even some scholarships or allowances.

What can I claim on my tax return as a student?

Knowing what you can claim is key to getting the best refund possible. Here are some common deductions and offsets students can consider:

Work-Related Expenses

If you spent money on things directly related to your job, you might be able to claim them. Examples include:

• Uniforms and protective clothing: If your employer requires a specific uniform or safety gear.

• Tools and equipment: Items you need for your job, like a laptop or calculator.

• Travel expenses: If you travel between multiple job sites (but not your usual commute).

• Self-education expenses: If your course relates directly to your current job, you might claim textbooks, course fees, or stationery.

  
  

Study-Related Expenses

While most study costs aren’t deductible, some exceptions apply if your study is directly linked to your current job. For example, if you’re a nurse studying a specialised course to improve your skills, some expenses might be claimable.

Other Deductions

• Union fees: If you pay union fees related to your job.

• Phone and internet: A portion of your phone and internet costs if used for work.

• Donations: Gifts to registered charities.

  
  

Tax Offsets and Rebates

Students with low income might be eligible for tax offsets like the low-income tax offset, which can reduce the amount of tax you pay.

Remember, to claim any deduction, you need to have records to prove your expenses.

Calculator and tax forms ready for tax return preparation

How to Avoid Common Tax Return Mistakes

Filing your tax return correctly is important to avoid delays or audits. Here are some common mistakes students make and how to avoid them:

• Forgetting to include all income: Double-check your payment summaries and bank statements.

• Claiming non-deductible expenses: Only claim expenses directly related to your work or study.

• Not keeping receipts: Always keep proof of your claims.

• Mixing personal and work expenses: Only claim the work-related portion.

• Missing deadlines: Set reminders to lodge on time.

  
  

If you’re unsure about anything, it’s a good idea to ask a tax professional or use the ATO’s resources.

How to Get Help with Your Tax Return

If tax talk makes your head spin, you’re not alone. Luckily, there are plenty of ways to get help:

• Use a registered tax agent: They can lodge your return for you and offer personalised advice.

• Visit ATO’s website: It has guides and tools designed for students.

• Attend free tax help sessions: Some universities and community centres offer free tax clinics.

• Use tax software: Many affordable options guide you step-by-step.

  
  

Getting help can save you time and ensure you don’t miss out on any refunds.

Making Tax Time Less Stressful Every Year

Filing your tax return doesn’t have to be a headache. By staying organised, knowing what you can claim, and using the right resources, you can make tax time a breeze. Remember, the sooner you start gathering your documents, the easier it will be.

If you want to learn more about tax return for students, the ATO website is a fantastic place to start. It’s packed with clear, reliable information tailored just for students.

We hope these tips help you feel more confident and ready to tackle your tax return this year. Here’s to stress-free tax time and keeping more of your hard-earned money in your pocket!

Happy filing!