How to Claim Tax-Free Threshold

Embark on a tax journey with WISTAX Mobile Tax and Accounting Services! Whether you’re handling a TFN or ABN, understanding how to claim Tax-Free Threshold is the key. Enjoy up to $18,200 tax-free income annually, but remember, being a tax resident is crucial to avoid higher tax rates.

Rick’s Tax Adventure: ABN and TFN Harmony

Meet Rick, a diligent soul managing both ABN and TFN in Belrose, Northern Beaches. As a full-year resident, Rick embraces the full TFA entitlement. Here’s a glimpse of his earnings:

  • ABN: $15,000
  • TFN: $15,000 (Net Income) with Tax Withheld of $5,000

With a combined income of $30,000, Rick has already paid $5,000 under TFN. Factoring in the TFA, his taxable income shrinks to $11,800 (Total of $30,000 – TFA $18,200).

Crunching Numbers: Tax Liability and Refund Insights

Referring to ATO tax tables, Rick faces a 19% tax on $11,800, resulting in a $2,242 tax liability. Having prepaid $5,000 under TFN, he’s due a refund of $2,758 ($5,000 – $2,242).

Unraveling Tax Nuances for ABN and TFN

Explore the interplay of income and tax liabilities. Tax paid through TFN work is considered when evaluating ABN income. Plus, leverage work-related expenses like courses, gear, and tools to minimize potential tax liabilities.

WISTAX: Your Guide in Northern Beaches

WISTAX Mobile Tax and Accounting Services understand Northern Beaches’ unique challenges. Receive tailored guidance on claiming the tax-free threshold and optimizing your tax position from our expert team.

Confidence in Tax Navigation

In conclusion, understanding how to claim Tax-Free Threshold involves grasping entitlements, assessing combined income, and optimizing your tax stance. WISTAX is your reliable companion for navigating tax intricacies in Northern Beaches.

Unlock Your Tax Benefits Now!

Ready to maximize your tax-free threshold? Connect with WISTAX Mobile Tax and Accounting Services for personalized assistance, ensuring compliance with Australian tax regulations and maximizing your earnings.

All WISTAX today for an initial free 15-minute telephone consultation with John and his team on 1800 841 312 if you want to join our fast growing accounting franchisee business