tax Q's

[HD_ACE]

hi all

Is it correct that an expense incurred for a medical+drug+alcohol for work is not claimable under work expenses but only under medical tax offsets? so unless you have over 2k of medical expenses you cant claim it at all?

also you pay an accountant to do your tax return but the deposit from the ato into your account is alot less. why is this?
Does the ato go through it with a fine tooth come and change it? if so do they send you a revised tax return so you can see what was changed?

thanks for your help.

 

[MRO]

The medical offset is 20% of the amount over $2k, so almost no one qualifies for it. I worked in msall business tax for 5 years and never had a single use of it.

The ATO wont change anything without telling you. Your tax return is almost always accepted by the ATO without change and then possibly audited later (unless you have a massive refund or other red flag in your return). The estimate from the tax accountant should be the same as the refund amount unless you owe money to the ATO, which the tax accountant should know about anyway.

 

[Paul@PFI]

Ace_hd

Ace

Thats right about medical exps. They arent tax deductible even if its a work related. Some are "too early" too. For example pre-employment screens etc. Also flu shorts etc are just a medical expense and are private and not deductible anyway.

Whoa....Your refund should be EXACTLY same as estimated. Its a self-assessment regime. However some glitches in software can occur. There is one this year for private health which is still being reported in some software incorrectly. That should be minor. All taxgents MUST credit direct to your account and cannot use their trust account unless you agree. This is such a pain they should chareg a fee that you consent to - Often $50 or so.

The ATO can adjust your refund.. For example - HELP repayments, BAS or other tax debts etc.

All of this is capable of verification using either of these:
1. Your Notice of Assessment. Iyt will go the tax agent after 2 days. It will show the actual assessed amounts.
2. Your agent can provide a copy of your Income Tax Account. If a debt exiosts it will show the debits and credits and the net due and paid to you.

Talk to your accountant and ask for these and an explanation. I always quickly check and get back to clients since they see the $$ first and get antsy if they expect $$$$ and only get $$

 

[HD_ACE]

Thanks guys.

I will email my accountant.
Its almost $600 less than the tax return.
So not sure why this is.
I didnt owe them money. Dont have private health and was direct from ato.

Cheers

 

[D.T.]

Thanks guys.

I will email my accountant.
Its almost $600 less than the tax return.
So not sure why this is.
I didnt owe them money. Dont have private health and was direct from ato.

Cheers

Sure it wasnt the accountant's fee?

 

[HD_ACE]

Sure it wasnt the accountant's fee?

Paid that before it was lodged.

Cheers

 

[HD_ACE]

Well it was to do with the medicare levi increase and change in software.
My return was completed before the software update but the ato processed it after the update so kindly amended it for me

Would of been picked up next year anyhow.

Cheers

 

[possumcreek]

Well it was to do with the medicare levi increase and change in software.
My return was completed before the software update but the ato processed it after the update so kindly amended it for me

Would of been picked up next year anyhow.

Cheers

Ahh... what increase in medicare levy? Do they mean the disablility care increase which comes into effect July 1st 2014 or the medicare surcharge which you pay if you earnt over a certain amount without having health cover?

Cheers

 

[HD_ACE]

Ahh... what increase in medicare levy? Do they mean the disablility care increase which comes into effect July 1st 2014 or the medicare surcharge which you pay if you earnt over a certain amount without having health cover?

Cheers

That one. Rose .5%

Cheers