Tax Questions (1 Viewer)

[notnownotever]

HI, I'M DOING TAX, AND I NEED TO KNOW WHAT TO DO. OK LETS GO.


Taxable income= $38958.29 TOTAL EARNINGS=$51200 AND TAXABLE GROSS=$50800
OK HOW DO I WORK OUT EVERYTHING.
Tax on this income

$0 – $6,000
Nil

$6,001 – $21,600
15c for each $1 over $6,000

$21,601 – $63,000
$2,340 plus 30c for each $1 over $21,600

$63,001 – $95,000
$14,760 plus 42c for each $1 over $63,000

Over $95,000
$28,200 plus 47c for each $1 over $95,000
SO US WORKING AND EVERYTHING

 

[redruM]

This is moronic. 1 thread would be enough.

 

[PC]

Can you check your question? I'm a bit confused when your say you have a taxable income of $38958.29 and then a "taxable gross". The two words do not usually appear together.

In any case, income tax is worked out on one's annual taxable income, and the amount is always rounded down to the nearest dollar. Then we simply use the tax table to calculate the tax.

Let's say the taxable income is $38958.29. This is rounded down to $38958.
Now this amount lies in the 3rd row of your tax table.
The rule says $2,340 plus 30c for each $1 over $21,600
So, income tax = 2340 + 0.30 x (38958 – 21600) = $7547.40

Hope this helps.

 

[Forbidden.]

The table of taxable income changes every year, it should not be memorised, but you will need to remember how to work out your net income after it has been deducted by tax ..

 

[PC]

Trial papers tend to use the relevant tax table for each financial year, so for this year's exam they might use the 2005-06 tax table, because it is the one that people will use to work out their tax!

Of course, a really nasty teacher might throw in the tax table from New Zealand or Liechtenstein or where ever, or even just make one up.

So it's better to understand HOW to use any tax table - pretty easy - just read the instructions!