How to add expenses and trips in myDeductions

 

What expenses to record

What expenses you record and how depend on whether you chose to use the myDeductions tool for your records as:

• an employee (or for your general records)
• a sole trader (for your business records)
• both an employee (or for your general records) and as a sole trader.

Employee and general records

Use myDeductions to record the following expenses:

• car expenses (work or self-education)
• work-related travel
• work-related uniform
• work-related self-education
• other work-related expenses
• gifts or donations
• cost of managing tax affairs
• interest deductions
• dividend deductions
• other deductions.

If you aren't sure, you can also select the option Decide later.

If you are claiming deduction types not listed here, you will need to enter them directly into your tax return.

Business records

If you are a sole trader, you can record the following deduction types:

• repairs and maintenance
• motor vehicle expenses
• all other expenses.

You should only record income in myDeductions if you’re a sole trader with simple tax affairs – that is, you don't have primary production business or personal services income. Only record your business income.

Common issues with adding expenses

Common issues with adding expenses are:

• 100% claimable expenses
• Cost of managing tax affairs
• If you make a mistake

100% claimable expenses

If your expense was for both work and private purposes, you can only claim a deduction for the work-related portion. At question 'Is this 100% claimable?' switch this to off. Then enter either a dollar value or percentage share for the amount of the expense that you are entitled to claim.

Cost of managing tax affairs

In myDeductions, you can record the cost of managing tax affairs (COMTA) expenses as:

• Litigation costs
• Other expenses incurred in managing your tax affairs
• Decide later.

Before 1 July 2018, all COMTA expenses incurred were recorded as one expense type. The update to myDeductions on 1 July 2018 allowed COMTA expenses to be recorded as either:

• litigation costs
• other expenses incurred in managing your tax affairs.

There is another field in your tax return – ATO interest. However, this is not included in myDeductions as we pre-fill this information into your tax return directly from our systems.

If you make a mistake

If you make a mistake, you can delete any recorded expense, as long as you haven't already uploaded it. Delete your expense by opening the record and selecting the Delete button.

If you have already uploaded the data when you realise there is a mistake, you can't change that year's information within myDeductions. Instead, change the data in your myTax return before you submit.

Add your trips

How to add and manage your work-related car expenses with myDeductions:

• Adding, editing and deleting a vehicle
• Trip recording options
• Start logbook
• Common issues with adding trips

Adding, editing and deleting a vehicle

Before you can add a trip, you have to add a vehicle.

If no trips or expenses have been added against a vehicle, you can edit or delete that vehicle record under Settings, Vehicle settings. However, once you record a trip or expense against a vehicle, that vehicle will always show in myDeductions (even in later years or if you delete trip records). You will only be able to edit certain fields for these vehicles.

Trip recording options

myDeductions provides 3 tracking options for you to record your car trips:

• Add point to point trip works out the shortest route between the start and end addresses you have entered. The tool works out the distance in kilometres and adds it to your record.
• Add GPS trip tracks your route to work out the distance you travel  
  • If you lose GPS signal during the trip, myDeductions will estimate the route and distance.
  • GPS uses more battery power and data than the other options, so consider the length of your trip.
   
• Add odometer trip is the most accurate option. Use this option if you are using the logbook method to calculate your work-related car expenses.

Start logbook

Select Start logbook from the Add trip screen, enter the logbook start date and your selected vehicle’s starting odometer reading.

Your logbook must cover at least 12 continuous weeks. You will be required to enter your vehicle’s closing odometer reading. When you select Save, you have created a valid logbook. After this, you can choose to stop your logbook by selecting Close logbook from the Add trip screen. As long as your logbook remains valid, you don't need to keep recording each trip.

You still need to record all relevant expenses for that vehicle if you want to make a deduction claim for the expenses.

Common issues with adding trips

The following are common issues users find when adding trips:

• Recording regular and multiple trips
• Recording trips when you're both an employee and a business owner
• Using a logbook when you are both an employee and a business owner
• Manual override of GPS or point-to-point trip record
• Self-education trip type
• If you make a mistake

Recording regular and multiple trips

If you make the same trips regularly, you can save them as a 'favourite'. To add a favourite:

• Go to Add trip.
• Select Add point to point trip.
• Enter the details, then select Save as a favourite trip.

Once you've made a favourite trip, click into the favourite trip and select save to record the trip.

Record multiple trips at once by adjusting the Record multiple trips? number. For example, if you make the same trip 3 times every week, enter '3' as the number of trips at the start of the week.

Recording trips when you're both an employee and a business owner

If you're a sole trader, but the trip is for your work as an employee, make sure the Is this trip for your business? option is off. In the Purpose of trip section select either:

• employee – work
• employee – self-education.

If the trip is for your business, make sure the Is this trip for your business? option is on.

Using a logbook when you are both an employee and a business owner

You will need to record all your car expenses as a business expense. To do this, ensure the Is this transaction for my business? option is on when you add a Motor vehicle expense.

Manual override of GPS or point-to-point trip record

When using the GPS and point-to-point trip recording methods, the tool uses Google Maps to determine the start and end addresses and distance travelled.

If the address or distance details recorded don't accurately reflect the trip you took, override them by moving the switch to the on position at the question Manually enter address or km?

Self-education trip type

When you select Self-education for the trip type, the question Is this travel you can claim? will appear on the screen.

For work-related self-education, you can claim the cost of daily travel from your:

• home to your place of education and back
• work to your place of education and back.

However, you can't claim the cost of the last stage of your travel from:

• home to your place of education, and then to work
• work to your place of education, and then to your home.

If you make a mistake

If you make a mistake you can delete any recorded trip, as long as you haven't already uploaded it. Delete your trip by opening the record and selecting the Delete button.

If you have already uploaded the data when you realise there is a mistake, you can't amend that year's information within myDeductions. Instead, amend the data in your myTax return before you submit.

How to add your expenses and trips in myDeductions as an individual, sole trader or both.