You have a Tax Bill after you've done your Income Tax Return
So, you have gone through and completed your etax return only to discover instead of getting some cash back (tax refund) the buggers at the tax office want to take more from you. Life can be so unfair. You are probably going through your receipts and scratching your head wondering, why.
Don’t worry you’re not alone and a lot of the time getting a tax bill can come as a surprise. Below we attempt to discuss some of the reasons why this may have happened to you. Please note, there can be several reasons for getting a bill and we are only giving you some common circumstances which may not reflect yours.
In order to understand why you are getting a tax bill, you need to first have a basic understanding of the workings of our great (ha) tax system.
This is a basic crash course. If you have a job your employer will withhold some of your earnings and pay this to the tax office on your behalf during the year. This is an estimation based on what your gross pay is and the current tax rates.
When you prepare your etax return your gross income less any deductions will give you your taxable income.
The actual amount of tax payable is then calculated on this and compared to the tax you’ve had withheld during the year. If you had too much withheld, then you get a refund (yay). Unfortunately, if you haven’t had enough withheld then you have tax payable (a bill).
So, there's part one of your crash course - In next week's blog, we answer why you haven't had enough tax withheld...
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Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circumstances and provide more accurate advice to your current situation.