krazyfluke

I am a 15 year old student in Australia and I turn 16 before the end of this financial year.I have earn $5000 this financial year and I have only been working a few months. I have paid $420 in tax.I was told that incomes between $0.00 and $6000.00 per annum you don't have to pay tax. But between $6000.00 and $30,000.00 per annum - 15% for each dollar over $6,000 (maximum tax in this bracket is 15% of $24,000= $3,600) .At the moment I am in the <$6000.00 income bracket. By the end of this financial year I expect I will have earnt $6000 - $8000. So this puts me over.My question is, will I be able to claim all of that $420 I have paid in tax for the first $6000 I have earnt, even if I have earnt $8000. Because it says on the ATO website (Australian Taxation Office website) that you pay 15% of each dollar earnt OVER $6000.If this helps I have never done a Tax Return before. First time I have been employed.Thanks in advance.

Chrish

Hard to say because your laws might not be the same as the US. I wll say though that we do have brackets that are similar to the ones you describe. You have a better understanding of tax brackets than at least 95% of the people I know. I think you are going to do very well!!!

eher1486

Hi there, you will be able to claim all of the $420.00 withholding tax. Although you need to pay tax 15% of each dollar over $6000.00, there is a low income tax offset since your income is less than $30,000.00Hope it helps

albertg2418

If you are under 18 and all your income is from working you are subject to basically the same tax rates as people over 18. With the low income rebate on top of the tax free threshold you can basically earn $10,000 beofre any tax payable kicks in. Therefore if you earn under $10,000 for the year you should get all the tax back that was withheld from your wages. If you have other income from 'passive' sources, such as interest and dividends etc your situation would be different. Best you see a accountant/tax agent to discuss your full circumstances, their fee will be fully tax deductible to you and you will get proper advice for your exact situation.