? a tax question

[Cougar]

ok here goes i have a couple of questions here

well this year i havnt paid any tax, actaully im on parenting payment partnered and single..i have been paid about $8000 this financial year.

i was paid a lump sum payment this financial year, it was my husbands superanution, and life insurance, i was paid this in december.

i have earned about $1000 in interest since december.

i have had lots of dental work, around $10000, and the receptionist said i can claim money back at tax time, anything over 1500 per financial year.

i have also bought a computer and laptop, and am going to claim the education (cant remeber what its called) but i know i can claim that buying computer needs etc for the kids schooling, and i know i can claim this if i dont need to put a tax return in. as i can just fill in a seperate claim form

ok my questions are

1. can i claim my dental work ? i havent paid any tax? this might be a really silly question.
2. do i have to pay tax on the lump sum i received?

thanks in advance

[Visitor7]

Check out this link chrissy, it should help you work out if are required to pay tax on the Super payout you received.
http://www.ato.gov.au/content/downlo...81-05-2007.pdf

Not sure about claiming medical expenses though. I'll have to think a little more about that one.

[infinity]

Hi Chrissy,

The medical expenses rebate is a tax offset - this means that it can only offset amounts of tax you have paid. It cannot create a refund.

For example, if you paid tax during the year of $100, and you work your medical rebate out to be $200 then the rebate offsets the tax payable to $0 - but you do not get the excess $100 refunded.

I hope this makes sense. The medical rebate itself is 20% of net medical expenses over $1500. Net medical expenses being your out of pocket medical cost - what you paid less any rebates from medicare or private health insurance.

As you say you haven't paid any tax then you will not be refunded anything for your medical expenses.

Hope I've been of some help

[Cougar]

Thanks infinity, i thought that would be the case, no tax paid so no refund..bugger

Thanks also jodi, checked the website, still alittle confused, but i think maybe not.

[infinity]

Hi Chrissy,

I just noticed that you are still a bit confused so sorry for not replying sooner.

Lump sum superannuation death benefit's are tax free when paid to a dependant. (Which I assume you are)
Life insurance payouts are also tax free.

Parenting Payment (Single) is assessable income and to be included in a tax return - you are entitled to a pensioner tax offset for this income - which will offset any tax payble for you on this payment.

The $1000 interest is also assessable income. Have the bank withheld withholding tax on this interest (they will if you did not provide a tax file number for this account)? If there is withholding tax on this interest, declare it in your tax return and in your case you will get it refunded.

From the information you give your taxable income is about $9,000, of which you will receive a tax offset for the parenting payment amount and you will also be entitled to a low income offset of $1200.

Basically given what you've told me you will not have any tax to pay. If the bank have withheld tax on the interest they paid you you will get this refunded - but no other amounts are refundable.

(I'm an accountant (tax) by the way)

Hope this helps, I suggest just taking everything you have to an accountant after 30 June and getting your return prepared - shouldn't cost you much as it's not a labour intensive type of return and then you dont have to worry about getting it right.

[Cougar]

thanks infinity again, i appreciate it.....

[mum3girls]

i have also bought a computer and laptop, and am going to claim the education (cant remeber what its called) but i know i can claim that buying computer needs etc for the kids schooling, and i know i can claim this if i dont need to put a tax return in. as i can just fill in a seperate claim form

Chrissy - Make sure you claim your internet cost as well, and if you kept your receipts from buying the kids' school supplies, you can claim those as well