Tips to get on top of your tax return

Tax filing season has officially begun and individual taxpayers have until 21 October 2024 to submit their tax returns to Sars. Whether you like it or not, you have to deal with the taxman.

If you are not one of the lucky ones who do not need to file a tax return or were selected for auto-assessment, you will have to get your documents in order. Carrie Norden, senior tax specialist at Allan Gray, gives this step-by-step guide for a successful tax return process.

Diarise the tax dates

“Prepare yourself for tax season by familiarising yourself with the relevant dates,” Norden suggests.

Sars sent out auto-assessment notices between 1 and 14 July 2024. “If you did not qualify for that and you are an individual non-provisional taxpayer, you must submit your return by 21 October 2024.”

Provisional taxpayers have slightly longer time to file, with a submission deadline of 20 January 2025, while trusts should file their tax returns between 16 September 2024 and 20 January 2025.

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Check if you must submit a tax return

Not everyone must submit a tax return, Norden says. “If you earn less than R500 000 a year from one employer and do not have any deductions you wish to claim, you do not have to file a tax return.”  Similarly, if you were chosen for an auto-assessment with Sars and you were happy with the result, there is nothing more you need to do.”

Norden says this year Sars is increasing the number of taxpayers who are auto-assessed.

“These taxpayers are chosen because their tax affairs are not too complicated. By using third-party data from employers, financial institutions and medical schemes, Sars can perform a tax calculation and issue a notice of assessment for the tax year.”

The good news is that if you agree with the assessment and you are due a refund, Sars will pay your refund directly into your bank account. If you owe Sars money, you must ensure you pay this by the due date indicated on your Notice of Assessment (ITA34).

Make sure your information is up to date

It is vital that your personal details on Sars’s system are up to date, Norden warns.

“This is particularly important for getting tax refunds. Everything from your bank details, physical address, email address and cell number should be checked. Even your marital status is important because whether you are married in or out of community of property may affect how investment information on your tax return is pre-populated.”

ALSO READ: Didn’t receive Sars auto-assessment notice? You can now file for tax return

Gather your documents

Now that all the preparation is complete, it is time to get your documents in order.

“These documents could be IRP5 tax certificates, which show the employment income you received in the past tax year, as well as tax certificates from your investment managers, which may show your contributions to retirement funds during the tax year and any investment income you earned and capital gains/ losses you incurred during the tax year,” Norden says.

Other documents include medical aid tax certificates and documents showing any additional income earned, or deductible expenses incurred for the tax year.

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File your return

Now you can submit your return either by logging onto Sars eFiling or the Sars mobile app. Some of the information will be populated automatically once your return generates, while you will have to add other information manually.

“Once your return is built, compare the information against your supporting documents,” Norden suggests. Third-party data can unfortunately not be edited. “If any of the information is incorrect, you will have to ask the applicable third-party to resubmit the amended data to Sars.”

Next, you must add outstanding information. “This could be capital gains or losses, which can be found on your IT3(c) tax certificates, as well as rental income and additional qualifying medical expenses not covered by your medical aid.”

If you are happy with the result, you can submit your return, but first check the estimated outcome using the tax calculator on eFiling, Norden advises. When you get your ITA34 document, you should check it and file it for your own records.

“If at any stage you feel overwhelmed, it might be worthwhile to ask for help. A full list of help channels is available on the Sars website or you can chat to your financial adviser or tax practitioner.”