Is This How You Calculate A Tax Return?

[Watermelon Man]

Hello,

Is this how you calculate a tax return?

1) Gross Income: (Eg: $65,000)
2) Add Rental Income: (Eg: $1,960 - 8 wks)

Add 1) & 2) = 3) Total Gross Income: $66,960

4) Total Tax Payable on 3) Total Gross Income: (Eg: $15,692)

5) Total Work Deductions: (Eg: $6,250)
6) Total Property Deductions (incl Interest Repayments): (Eg: $8,400)

Add Total Work & Property Deductions together = 7) Total Deductions: (Eg: $14,650)

Subtract 7) away from 3) = 8) New Total Gross Income: (Eg: $66,960 less $14,650 = $52,310)

Therefore: calculate 9) Total Tax Payable on 8) New Gross Income: (Eg: Tax on $52,310 = $11,077)

10) Subtract 9) away from 4) to calculate potential Tax Return: (Eg: $15,692 less $11,077 = $4,615)

P.S. I have private health insurance & no HECS debt.

If you have followed me through this maze of numbers, do you think this is correct?

Much appreciated!!

 

[Debt Junkie]

Yes. Where's my aspirin ....

Oh hang on, let me clarify - it's correct as long as you are ONLY talking about the tax on your IP ... for a full scale tax return you have the other joyous things - medicare levy, HECS etc ...

DJ