Use 22seven to ace your tax return 💪
We all know how 22seven works as a budgeting tool, but did you know that it can also help you complete your tax return? Don’t let tax season be a time of angst and admin. Here’s how to use the app to get your return done fast and efficiently.
Set the date range
22seven’s intelligent transaction categorisation helps you track your monthly budget. Take it one step further by using the date range filter in the advanced search feature on the Transactions page to set the dates for the tax year in question. This will show you all your income and expenses within the relevant timeframe, to streamline your tax return experience.
Do you regularly contribute to charities, or donate to other causes or individuals throughout the year? Donations can be deducted from your taxable income, so be sure to add all relevant amounts to the Donations category. Donations is a default category in the app, so you can use the category filter in the advanced search feature to see how much you can deduct on your return.
You’re allowed to deduct certain expenses that your medical aid didn’t reimburse you for. Make the medical part of your tax return simpler by creating custom categories for all your medical expenses. This will help you work out how much you can deduct without having to scramble through doctor’s emails and receipts. For example:
- Monthly medical aid contributions.
- Expenses that your medical aid paid for or reimbursed you for in full.
- Expenses that you paid for, or which were only partially settled by your plan. The expenses in this category are the ones that you can deduct on your return.
Do you earn commission?
If you earn more than 50% of your annual income in the form of commission, you’re allowed to claim all expenses directly related to earning that income. Use custom categories to separate your expenses accordingly, then export all the data from the relevant category to an Excel worksheet, which will allow you to tally up the total deductible amount. Separating your expenses like this also makes it easy to give details to a tax practitioner or SARS.
What about your side hustle?
Use custom categories to separate personal transactions from any transactions related to a new business venture. For example, buying school stationery can be categorised as “Stationery — Personal”, whereas paper and printer ink for your freelance gig can be allocated to “Stationery — Business”. This will help you identify which expenses you can deduct. If you have a dedicated side hustle or business account, you can also filter transactions for that account only, which lets you see all expenses and income at a glance.
More tax tips!
A tax-free savings account is a great way to invest without having to pay any tax. This article explains what you need to know.
Have you been working from home? If so, you’re entitled to certain tax deductions. This article explains the pros and cons of claiming for your home office and gives you advice on how to get it right.