During the income year ended 30 June 2019/20 Nicholas, a resident, received salary and wages income of $35,000, interest income of $3,000, an exempt compensation payment of $23,000, commission income of $4,000, a Living Away from Home Allowance (LAFHA) of $20,000, an Overtime Allowance $2,000 and a rental loss of $9,000. Assuming that he has PAYG (W) of $6,000. Ignore tax offsets.
Required: what is Nicholas tax payable / refund (Please show all workings)?
During the income year ended 30 June 2019/20 Nicholas, a resident, received salary and wages income of $35,000, interest income of $3,000, an exempt compensation payment of $23,000, commission income of $4,000, a Living Away from Home Allowance (LAFHA) of $20,000, an Overtime Allowance $2,000 and a rental loss of $9,000. Assuming that he has PAYG (W) of $6,000. Ignore tax offsets.
Required: what is Nicholas tax payable / refund (Please show all workings)?
Solution
Nicholas is a resident person. His Gross total income is $41000 and his totao diduction is $9000. Nichola's Taxable amount is $3445. But he has PAYG (W) of $. 6000. So he has no tax liability during the year.
Calculation notes are given below:
|
Statement of Income Tax |
||
| Salary And Wages | $ 35,000.00 | |
| Commission Income | $ 4,000.00 | |
| Overtime Allowance | $ 2,000.00 | |
| Gross Total Income | $ 41,000.00 | |
| Deductions | ||
| Rental Loss | $ 9,000.00 | |
| Total Deduction | $ 9,000.00 | |
| Taxable Income | $ 32,000.00 | |
| Tax Amount | $ 3,445.00 | |
| Tax With held | $ 6,000.00 | |
| Tax Due or (Tax refund) | $ (3,000.00) |
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