What is the purpose of filling in a personal income tax return and what deductions are allowed?
I need help with my Taxation Assignment and so far, I can't seem to find any answers on these following questions; - What is the purpose of filling in a personal income tax return? - What deductions are allowed in the personal tax return? And if you don't mind, can you help me with this question as well? - What is Tax Payable? Your help will be much appreciated. And can you please put in the sources of the answers? Please and thank you =)
Public Comments
- The purpose of the tax return at the EOFY is for the tax office to calculate your total tax that is payable to them. During the year, if you are employed or own a business etc.. taxes are taken out of your salary etc, this is based on a tax table and is estimate only so you are not hit with a large lump sum at the end of the year.. The tax return will help assess whether you have overpaid the tax office or underpaid and whether you will receive a tax refund for overpayment or pay them more tax because you have not paid enough of it. Tax return also include things like medicare levy. Deductions include things like donations, educational expenses, work related expenses etc.. Tax payable is worked out according to what the taxable income (income minus deductions) is and the tax rate applicable for that income.
