Since tax season has just started and all, we thought we’d give you some handy help and hints. So we called on our friend TaxTim. TaxTim is a not an actual human. He’s a digital tax assistant who was developed by actual humans. Actual humans who really know tax stuff.
TaxTim has cute square glasses and a green tie. He helps people complete and submit their tax returns online. He also answers questions and occasionally dispenses tax tips. Like the ones you’re about to read.
Tip 1: An IRP5 is not an ITR12
Your ITR12 is the actual form (“Income Tax Return – 12 months”) that you have to complete and submit to SARS. An IRP5 is one of the documents you need to do this.
An IRP5 is a summary of all the payslips you got from your employer during the tax year (1 March 2013 – 28 February 2014). It shows how much income you earned and all the deductions, like tax you’ve paid to SARS. (Actually, SARS will already have your IRP5 from your employer, who should also by now have given it to you.)
What you’ll also need to complete your ITR12 are details of what you’ve spent on and earned from certain things. See Tip 2.
Tip 2: Almost everything you need is in your Transactions
If you’ve been using 22seven for the tax year you can get most of the information you need to complete your tax return from your Transactions list.
You can also use your bank statements if you like, but your Transactions on 22seven will have all the same information and allow you to do stuff your bank statements don’t. Like searching for specific transactions or categories, or just looking at particular accounts or dates. Check out this previous blog post to see how you can use Transactions to complete your tax return much more quickly and easily.
Tip 3: These are some of SARS’ favourite things
Categories that may be relevant to your tax return include:
- Salaries & Wages. SARS should already know what you’ve earned, but you can double check.
- Vehicle Expenses. If you use your car for work, you can deduct maintenance and fuel costs.
- Health and Medical. Your medical aid contributions, and any prescribed medical or surgical expenses that weren’t paid by a medical aid, are tax deductible.
- Donations to charity. Also deductible. (Only those to registered charities with NPO numbers.)
- Interest. (That you earned, not paid).
- Pension, retirement fund and income protection contributions.
If you work for yourself, there may be other business expenses you can include, like entertainment, salaries paid, gifts, telephone and internet. If you own a property that you rent out, you can include maintenance expenses and interest on bond repayments. And there are various other “if… then” expenses to consider.
If you want to know what they are, or have any other tax-related questions, we can recommend TaxTim. You’ll find he’s more helpful than e-filing. Wishing you one happy return.
TaxTim helped us write this blog post.