EzTax Knowledge

The ATO has just announced an increas in their general interest charge (GIC) from 11.16 for the June 2010 quarter to 11.80% for the September 2010 quarter.

Note that the GIC compounding rate now extends to most taxes, including:

• income tax
• fringe benefits tax
• goods and services tax
• pay as you go.

For more details vitist the ATO here.

Remember, you cannot automatically claim a deduction just because you received an allowance. For a summary of deductions specific to Engineers  see our post ==> Tax Deduction Finder for My Job.

Engineers commonly get the following types of allowances:

• motor vehicle allowances (based on a cents-per-kilometre basis)
• travel
• meal.

If any allowance is shown as a separate amount on your payment summary, include it as income at item 2 on your tax return. You must include the whole amount of any award transport payment you received.

Receipt of an allowance does not automatically mean that a corresponding tax deduction can be claimed, even if your work might be considered unpleasant, special or dangerous.

You can see what your 2010 tax refund will be using this 2010 tax refund calculator tool:

2010 Tax Refund Calculator

Online Tax Return service – In addition to generating a FREE tax refund calculation, what ezTax does is present you with easy step-by-step instructions, detailed but simple explanations, intuitive processes, easy payment methods, supported by a comprehensive knowledge base and access to a certified accountant and registered tax agent online – all from your own home.

The response for ezTax has been phenomenal. I’m so sure that you are going to love ezTax that I am willing to completely guarantee it! Here is what you can learn:

• what income you don’t have to declare
• an explanation of common deduction
• how much in deductions you can claim without receipts
• expenses you can claim for your childrens’ education
• what medical costs you can claim for

Remember, you cannot automatically claim a deduction just because you received an allowance. For a summary of deductions specific to disability support care workers see our post ==> Tax Deduction Finder for My Job.
disability support care workers commonly get the following allowances:

• motor vehicle
• uniforms
• meals
• travel
• telephone
• shift

If any allowance is shown as a separate amount on your payment summary, include it as income at item 2 on your tax return. You must include the whole amount of any award transport payment you received.

Receipt of an allowance does not automatically mean that a corresponding tax deduction can be claimed, even if your work might be considered unpleasant, special or dangerous.

Highlights:

• Education Tax Refund expense threshhold has increased in 2010 to 50% claim of  $780 (primary schoold) and $1558 (Secondary school).
• Excess Education Tax Refund expenses from 2009 can be rolled over to 2010
• For a summary of eligible expenses see this post ==> 2010 Education Tax Refund Eligible Expenses

You may be eligible for the education tax refund if you, or your partner, incurred eligible education expenses between 1 July 2009 and 30 June 2010 for the primary or secondary school studies at school, home or TAFE of:

• a child, or
• yourself, if you were an independent student under 25 years old undertaking primary or secondary studies.

A partner for Education Tax Refund is:

• person of the same or opposite sex:
• with whom you are legally married or in a marriage-like relationship
• from whom you are not permanently separated, and
• who is not blood-related, related by adoption or under the age of consent.

You incur an Education Tax Refund expense:

• you receive a bill or invoice for an expense that you are liable for and must pay (even if you don’t pay it until after the end of the year), or
• you do not receive a bill or invoice but you are charged and you pay for the expense.

You can claim carry-forward excess eligible education expenses from last year only if you are eligible for the ETR in respect of eligible education expenses incurred this year.

For you to be eligible to claim the Education Tax Refund for an expense for a student, the expense must be an eligible education expense, and when the expense was incurred:

1.  you must have met one of the four conditions (see below) below, and

• you received, or were eligible to receive, FTB PArt A for the child the expense related to;
• you received other Centrelink payment for the child (eg Youth Allowance, disability support pension, Abstudy or rescribed educational scheme payment)
• the child stops school during the year but was an eligible student when the expense was incurred
• you were an independent student under 25 and no other person was entitled to claim the Education Tax Refund on your behalf.

2.  the student must have met the schooling requirement was enrolled or registered in a primary or secondary school course (at school, home or TAFE) and attended that course, or received the home schooling, for at least one day:

• between 1 July 2009 and 31 December 2009, then they met the schooling requirement for every day in that period
• between 1 January 2010 and 30 June 2010, then they met the schooling requirement for every day in that period
• in each of those two six-month periods, then they met the schooling requirement for the whole year.

Details on who can claim ==> Education ax Refund 2010

The following are eligible education expenses if they relate directly to the education of the student for whom you are claiming the Education Tax Refund:

• laptops, home computers, repair and associated running costs
• computer-related equipment, such as printers, USB flash drives, as well as disability aids to assist in the use of computer equipment for students with special needs, repair and associated running costs
• home internet connection, including the costs of establishing and maintaining it
• computer software, for example, word processing, spreadsheet and presentation software
• school textbooks and other paper-based school learning material, including prescribed textbooks, associated learning materials, study guides and stationery
• tools of trade, such as tools required to complete a school-based apprenticeship.

The following are not eligible expenses for the ETR:

• school fees
• school uniform expenses
• student attendance at school excursions and camps
• tutoring costs
• sporting equipment
• musical instruments
• library book fees
• building levies
• school subject levies
• school photos
• donations
• tuckshop expenses
• waiting list fees
• transport
• membership fees
• computer games and consoles.

You cannot claim for an expense, or that part of an expense:

• that is tax deductible
• that is subject to another tax offset, or
• for which you received or are entitled to receive a reimbursement or payment under a Commonwealth benefit, grant or subsidy.

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Remember, you cannot automatically claim a deduction just because you received an allowance. For a summary of deductions specific to Security Guards see our post ==> Tax Deduction Finder for My Job.
Security guards commonly get the following allowances:

• motor vehicle
• uniforms
• meals
• telephone

If any allowance is shown as a separate amount on your payment summary, include it as income at item 2 on your tax return. You must include the whole amount of any award transport payment you received.

Receipt of an allowance does not automatically mean that a corresponding tax deduction can be claimed, even if your work might be considered unpleasant, special or dangerous.

Remember, you cannot automatically claim a deduction just because you received an allowance. For a summary of deductions specific to Sales Representatives see our post ==> Tax Deduction Finder for My Job.

Sales Representatives commonly get the following types of allowances:

• motor vehicle allowances (based on a cents-per-kilometre basis)
• meal.

If any allowance is shown as a separate amount on your payment summary, include it as income at item 2 on your tax return. You must include the whole amount of any award transport payment you received.

Receipt of an allowance does not automatically mean that a corresponding tax deduction can be claimed, even if your work might be considered unpleasant, special or dangerous.