You may not be aware of it but some of the payments you make can actually reduce your taxable income. And these acts are purely legal. You need not skip certain earnings that can actually bring you to jail. Take your cue from these actual cases when you would never think these people can actually get more for what they did.

Mark Morris, a senior tax counsel in Australia talks of a police officer who can claim the payments he makes to informants through his tax payments. With adequate documentation and authorization from his service, he can actually get his money back. It works like any expense made by an employee that the business must reimburse. Especially since the police officer works for the state, it is also the state that will pay him back through the cut in his taxable income.

Another interesting way that you can actually cut on your taxable income is through the clothes you wear to work. It may seem kind of odd but if a change in wardrobe is required for you to perform your job, then you can you can actually save some money come tax payment time. Flight attendants are awarded allowable cuts when they have to buy shoes or clothes in place of the ones that they have but would affect their jobs. Electricians who work outdoors can seek cuts for the payments made in buying protective gears and clothing.

You may find these instances odd but you will be surprised to find out about the mundane things you do every day that actually allow significant deductions to your taxable incomes .

• You can actually avail of laundry deductions when you have to pay more to clean protective clothing and other work-related apparel. This is applicable to employees of chemical companies and similar industries where the clothes they wear are different from the normal clothes a person wears. Since they are made of different materials of have delicate structures, you can be spared of the costs of cleaning them.
• Home office costs are allowable deductions for people who work in their homes. At a normal rate of $0.26 per hour, the worker can save the costs he or she incurs for electricity and other costs for the work.
• Self-education costs can also be claimed if you are taking up higher studies aimed at your current career alone.
• Motor Vehicle costs can also be allowed if your company does not reimburse your vehicle costs like petrol consumption for work-related trips.

In general, allowable cuts work as reimbursements wherein the paybacks are made through the cuts in the taxable income. Allowable deductions are usually awarded to builders, cleaners, healthcare workers, electricians, engineers, hairdressers, lawyers, miners, security guards and travel agents. It you have inquiries and questions on how you can avail of allowable deductions, visit www.ata.gov.au. Just keep in mind that for transactions to be valid and authorised, proper documentation is necessary. You can also seek help and assistance from your financial advisers.