Since it’s time to get your 2016 income tax return lodged I thought I would take the opportunity to offer some response to questions that I get frequently asked by our clients about income tax.
Please review the following list and contact Personalised Tax Services if you would like some further information.
Why does my second job seem to withhold so much tax?
- You cannot claim the tax-free threshold of $18,200 for your second job. You are consequently taxed at your marginal rate plus Medicare Levy on all of your earnings in the second job.
Do I need to enter $10,000 I won at the casino into my income tax return?
- If you are not considered to be a professional gambler you do not have to declare the win.
What about winning some money in a lottery does that need to be included in my income tax return?
- No the same rule applies as above.
Do I need to declare my overseas pension?
- Yes in most cases overseas pensions are taxable. There are some exceptions to this. Contact Personalised Tax Services if you are not sure.
Do I need to declare my inheritance?
- Not if it is a lump sum payment. If this is invested then any income earned from this investment is taxable. If there is a deceased estate involved you will be advised by the Trustee if any part of your inheritance has to be declared on your tax return. Please call Personalised Tax Services if you are not sure.
My interest is only $5.50 does this amount have to be declared?
- Yes you must declare all interest earned from all sources.
I receive some Centrelink income should I include this in my income tax return?
- Yes you must declare all income earned from all sources.
I have some shares for the company I work for and occasionally get dividends should I declare these?
- Yes all dividends need to be declared. Some dividends from shares you own will have franking credits attached to them which will reduce the amount of tax you need to pay. If you are part of an employee share plan then you should receive an annual statement from your employer. This will be used to complete your tax return.
I worked overseas during the last year do I need to include this income in my income tax return?
- Yes all income earned from all sources must be declared. You may be able to receive a credit for the overseas tax you have paid depending on the country you worked in. Please call Personalised Tax Services so that we can help you.
My children have a bank account each and earn interest do they need to lodge a income tax return?
- If you are under the age of 18 years as at 30 June and assuming no other income you do not need to lodge a tax return unless your interest is greater than $416.