Tax (1 Viewer)

[hipsta_jess]

Ok, I've just started working, and I need someone to explain this tax caper to me. Last week I earnt $270, and my employer withheld $70 of that for tax. When people talk in June about 'getting their tax back' does that mean I'll get 52 lots of $70 back or something? Are there any conditions on it?

 

[hipsta_jess]

So if I earn $7000, I'll get most of my tax back on the first $6000, and then...nothing back on the last $1000?

 

[hipsta_jess]

Man that sucks butt

 

[frederica]

It's not that simple, or that screwed up!

For every dollar you earn over $6000 dollars you pay 15 cents in tax. It is quite possible that like in the example you showed, your employer is paying GREATER than 15 percent in tax .. in which case, even when you earn over $6000 you'll be getting money back.

 

[JoyDivision]

Jess -

the tax system works on a sliding scale.
Lets say you earnt $270 for 52 weeks of the year = 14040.00 gross.
and $70 tax is witheld for those 52 weeks = $3640.00


Your first 6 k is tax free, bringing your taxable income down to $8040.00. This income will put you in the second tax bracket ($6,001 – $21,600) which means you are obliged to pay 15c tax for each $1 you earn over $6,000. (This rate is for the 2005-06 financial year)

According to this rate, you shouldve paid $1366.80 in tax out of your taxable income. But, in reality you have paid $3640.00

So $3640.00 Tax you paid
minus $1366.80 Tax you shouldve paid

Equals $2273.20 Return Due to You.


You would probably recieve another $235.00 on top of this amount as the low income earners offset, but to calculate it accuratley youd also have to take into account the part year tax free threshold if you started work recently.

Hope this helps.

 

[mishka]

My opinion is it's better to pay a bit more in the first place and get a good return come July than to have to owe the bastards

 

[sikeveo]

Bastards? Lol, you use their services.

 

[go_swans]

yeah tax is fucking shit. i got 400 back from paying over 1500

 

[hipsta_jess]

hmm thanks guys...doesn't sound quiiiiiiiiite so horrible now (still sucky nonetheless though)...heres hoping I get looooooooots of it back, lol.

 

[Bunny04]

They with held $550 cash from me, and i got $550 at tax return time.
Beacuse i only earned over the last tax year 3500
So, as well as my low income below the tax paying threshold- I got t he low income earners thingo.
whoot . 550 to the bank -snicker-