All things adulting, Finance

The broke girls guide: 5 steps to getting more money back from the tax man

Hey there awesome people. Remember that broke girl who helped you survive the festive season? Well she is back helping you with some tips to get back some money from the taxman. Oh wouldn’t it be swell if we were taught these tips in high school? Tax season is nearing, whether you choose to stand in lines or submit online we all need to answer to the taxman. These tips below will ensure you get a bigger refund that you can use on a mini vacay or put it away in your investments.

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  1. Donations

If you are a giver, great, if not this is your time to start. You can donate up to 10% of your taxable income into public benefit organisations. However you need to make sure that they are registered with SARS and issue tax certificates (section 18A to be precise). Side note please don’t stop helping out those less fortunate just because they do not issue tax certificates.

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  1. Medical aid

I know a lot of people aren’t always fans of medical aid, especially if you are not often sick. It’s great to have though for those unexpected illnesses. Another great thing is that you can claim deductions for your contributions, the more the dependents the more the pay back.

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  1. Retirement annuity

One is never too young to start planning for their retirement. An added bonus is that you can claim back your contributions made to your provident and retirement fund. Keep in mind that taxpayers that contribute to an employer run pension fund should be receiving their reduction in tax liability monthly.

  1. Tax free investments

If you have invested in a tax-free investment, interest income earned is fully exempt from tax. Compared to other investments where interest income is partially exempt.

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  1. Travel Claims

If you receive a travel allowance from your employer and use your car for work purposes, you can reduce your tax liability when submitting your annual tax return. You must keep a proper logbook.

 

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Perhaps you are already doing some of these tips or just finding out either way, when you know better you do better. Here is to submitting on time, getting tax clearance and getting higher returns and spending them wisely. If you have any other useful tips be sure to let me know on the comments section. Please continue sharing the link (sharing is caring). Do not forget to subscribe (it’s totally free) you will be the first to know when I post and host giveaways.

 

 

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