All Topics / Legal & Accounting / Am I allowed to ask a tax question?

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of not_so_luckynot_so_lucky
    Member
    @not_so_lucky
    Join Date: 2008
    Post Count: 121

    Hi all

    I am doing my girlfriend's and my tax return.
    Her gross income this year was
    $51,000 (with no Medicare surcharge)
    and mine was
    $56,000 (with $560 for Medicare surcharge)

    We have been living together for over three years, so we qualify as "de facto". Would we benefit by declaring eachother's income in our tax returns? Would they average out our income so that it comes to $53,500 each? And then we would pay less in Medicare surcharge?

    I hope this question is allowed here. If not, feel free to delete it :(

    Profile photo of Mr5o1Mr5o1
    Participant
    @mr5o1
    Join Date: 2010
    Post Count: 107

    Hi Not so lucky..

    In your case it will make absolutely no difference to the results of your tax return. Joint income is used for only a few calculations, medicare levy surcharge being one of them, but your both under the threshold for that whether you lodge as individuals or defacto.

    Profile photo of not_so_luckynot_so_lucky
    Member
    @not_so_lucky
    Join Date: 2008
    Post Count: 121

    Thanks for that Mr5o1.
    Does that mean I should not have been charged $560 for Medicare surcharge?

    Profile photo of Mr5o1Mr5o1
    Participant
    @mr5o1
    Join Date: 2010
    Post Count: 107

    thats right.. currently, your not liable for the MC Levy Surcharge till your income is > $75k as an individual or joint income > $150k as a couple. in `08 and before the thresholds were $50k and $100k respectively.

    Medicare Levy is a different storty, but the $560 amount looks like MCLS.

    Profile photo of not_so_luckynot_so_lucky
    Member
    @not_so_lucky
    Join Date: 2008
    Post Count: 121

    Thanks so much for that. I must have ticked something wrong when filling out my tax return. Will go over it tonight again. Luckily I hadn't submitted it yet :)

    Profile photo of Grow SMSFGrow SMSF
    Participant
    @evolve
    Join Date: 2009
    Post Count: 66

    Yeah – you pay the 1.5% medicare levy – which is different to the medicare levy surcharge which is on top of that.

    As per Mr5o1

    Cheers
    Evolve

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Viewing 6 posts - 1 through 6 (of 6 total)

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