Does your brain go all mushy at the mention of taxes? Don’t stress babe. Here’s what you need to know about prepping your tax return.
By Mama Disrupt®
We get it, it can be tough to keep track of your side hustle income and expenses when you’re doing the mama juggle.
And we know that tax time can be stressful, but it doesn’t have to be. By following these tips, you can file your tax return confidently and get the most out of your refund.
1. Declare all your income
This includes any money you make from your side hustle, even if it’s just a few hundred dollars a month. The Australian Taxation Office (ATO) requires you to declare all of your income, regardless of how much you make.
2. Keep good records
This is super important for claiming deductions on your tax return. Make sure you keep track of all of your expenses related to your side hustle, such as:
- Cost of goods sold
- Advertising and marketing
- Travel expenses
- Equipment and supplies
- Professional fees
- Home office expenses
3. Use the right tax deductions
There are loads of tax deductions that you may actually be eligible – especially as a mama with a side hustle. Some of the most common deductions are:
- Childcare expenses
- Equipment and supplies
- Home office expenses
- Travel expenses
- Mileage
- Professional fees
4. Get help if you need it
If you’re feeling overwhelmed, don’t be afraid to get help from a pro. A tax agent can help you file your return correctly and make sure that you’re claiming all of the deductions you’re entitled to [because every dollar counts, right!]
Tips and tricks for mamas with a side hustle
- If you’re just starting out, you may want to consider setting up a business bank account and credit card. This will help you keep your business finances separate from your personal finances.
- If you work from home, you may be able to claim a deduction for a portion of your rent or mortgage, utilities, and internet expenses.
- If you use your car for business purposes, you can claim a deduction for the business-related portion of your mileage.
- If you take courses or workshops to improve your skills for your side hustle, you may be able to claim a deduction for the cost of the courses.
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