by Kathryn Main
The shift to a work-from-home culture due to the pandemic has brought up new questions about taxes, expenses, and deductions. In this article, we'll explore how the new work environment affects your tax return and what you need to know to stay on top of your taxes.
As a responsible citizen, it's important to understand and stay up to date with tax rules and regulations. For example, the South African Revenue Service (SARS) has made submitting tax returns for individuals and organisations easy and accessible, so you have no excuse for ignorance. Understanding tax is a key way to better manage your finances and avoid financial distress in the future.
When it comes to tax returns, it's crucial to stay organised and have all the necessary supporting documents ready, such as:
IRP5
IT3(b) - summary of interest and dividends earned
IT3(c) - summary of sales of investments
IT3(s) - summary of interest and dividends earned on tax-free savings account
Medical Aid Certificate
Logbook for business and personal travels
Section 18A Certificate for donations
Relevant invoices and statements
If you're submitting your tax return using E-Filing, SARS provides a helpful video guide to get you started.
Boost Your Tax Savings with These Overlooked Deductions
You can save money on your taxes by taking advantage of certain deductions, such as contributions to pension, provident, and retirement funds (up to 27.5% of your gross remuneration, with a yearly limit of R350,000). Donations to registered charities are also tax-deductible (up to 10% of your taxable income). SARS also provides tax relief for tax-free savings and investments, with a yearly limit of R36,600 and a lifetime limit of R500,000. Additionally, you can claim tax credits for medical aid expenses, with a primary member deductible of R332 per month and R224 for each dependent.
Finally, it's important to keep track of medical expenses not covered by your medical aid, as they may be eligible for tax deductions. For more information, check out the SARS E-Filing guide available
In conclusion, the shift to a work-from-home culture has brought new considerations for taxes and expenses, but with the right information and preparation, you can minimize your tax liability and keep your finances in order.
To stay on top of your tax you can download a copy of our tax guide here: https://moneysavvyhumans.viewpage.co/Tax_and_E-Filing_Guide_Download
If you are looking for words to describe Kathryn Main, CEO the Money Savvy brands, quirky, determined, visionary and masterful are just some that spring to mind. Kathryn is an author and award winning businesswoman and has won awards for her advertising agency as well as Money Savvy Kids. Kathryn has a passion to change the face of education on the African continent through financial literacy education and training. The Money Savvy brands are revolutionizing the way financial knowledge is disseminated to younger generations of South Africans. Money Savvy Kids + Teens promotes in youth the skills, knowledge attitudes and behaviors required to be financially independent.
More articles by Kathryn
