Educational TAX refund

freemoneyhunter on 30/03/2013 - 18:22

I started working in IT this year, after I got my job I decided to pay for education related to my job which is $3000. I will only earn 22k this financial year, I also should receive 1.5k low income tax refund. In effect I will not pay any tax but I have 3k of educational expenses I want to claim.

Can I hold onto the educational receipts and use them in next years tax return? I also am going to ask my employer to pay out my holidays and I will take non leave absence next fy to bump my pay up abit, but still will fall far short.

What should I do I? What is the best way to go about this? ideally I would have liked to claimed the educational expenses because then I could get 1.5k off my tax if I paid enough tax.

Help would be appreciated.

Financial

Comments

  • chloden on 30/03/2013 - 18:26

    There is no longer an Education Tax refund, whereas you make a direct claim in your tax return. It has been replaced with the School Kids Bonus.

  • freemoneyhunter on 30/03/2013 - 18:31

    I thought you get a refund of 1/2 the amount you paid if the education is used to improve yourself in your current employment.

  • chloden on 30/03/2013 - 19:04

    Not anymore. Google it and you will see that they have changed it. You do still get the money, you just don't have to spend the money first, so it is kind of better.

    • KD3735 on 30/03/2013 - 20:18
      +4

      I don't think you two (freemoneyhunter & cholden) are on the same page here.
      freemoneyhunter is talking about education refund for himself which is for work purpose.
      cholden, you are talking money that help families with school costs

  • freemoneyhunter on 30/03/2013 - 20:33

    Yeah KD3735, I want to defer the TAX write off to next financial year if possible. Can it be done?

    • strangeloops66 on 30/03/2013 - 22:00

      No. If you use this year's receipts next year, and you are audited, you face penalties, even if their inclusion does not result in a shortfall amount.

  • FromAtoZ on 31/03/2013 - 04:40
    -2

    Please correct me on this.

    1. Education tax refund is removed. You are no longer able to claim it.

    2. You can claim as education self expense
      http://www.ato.gov.au/individuals/content.aspx?menuid=0&doc=…

    3. Yes u are probably able to use the receipt next year if :

    - you dont do tax return for 2012-2013
    - in 2014, you log the tax, using a tax agent, and request them to do tax return for two years, 2012-13, 13-14.

    Cheers.

  • squeeb on 31/03/2013 - 09:19
    +1

    The tax free threshold for 2013 is $18,200. The low income tax offset has been reduced to $445.

    1. You are still required to lodge your 2013 tax return.
    2. If you paid for the education expenses prior to 30 June 2013, it must be claimed in your 2013 return. There is no provision to hold over receipts to the next financial year. Tax years are discrete.
    3. On your income the maximum you could get back is 19% (your marginal tax rate).
    4. Depending on the course, it would can be claimed as a self-education expense or perhaps a work related expense. See your accountant for guidance.
    5. The education tax refund has been abolished.
  • freemoneyhunter on 31/03/2013 - 09:42

    low income offset been reduced from 1,500 to $445, that is not so bad then. So 1.5k study expenses I can get back + $445 low income offset, + $150 clothing and $100 for CC interest, what else can be claimed in general? Will I have to pay Medicare levy? ATM my income will be 23000 so my taxable income will be $912, my calculations I have $2195 worth of deductions (including low income offset).

    What is the best way to handle this situation?

    I am just editing this post, from what I understood, self education for example fees, you could only claim 1/2 the cost, but it looks like now, you can claim the entire cost minus $250. Is that correct?

    I used the calculator here.
    http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=…

    • goyourself on 31/03/2013 - 17:40

      if you travel in your vehicle from work to your study institution you can claim the mileage, same with the parking. If you use the internet for your study you can claim a %, same with the computer you use, if you purchased a comp exclusively for study you could claim a high majority of the outlay, if you go to a tax accountant they can work this all out for you. You can also claim your accountant expense for the next fy. If your course goes over into the next FY and you pay at the end of it, its a possibility you could claim it for that FY

  • dealman on 31/03/2013 - 11:34

    I decided to pay for education related to my job which is $3000.>>

    Can you postpone the payment to the next financial year? The only alternative to this is , and speak to your accountant on this before doing anything.

    I think if you register for an ABN you can carry forward losses from one financial year to the next.

  • freemoneyhunter on 31/03/2013 - 12:13

    Thanks dealman, I don't think I will bother with an ABN.

  • freemoneyhunter on 31/03/2013 - 19:21

    gofvkyourself, Yes the course goes for a year, 3k first and 3k second 1/2 of year.

    dealman, no I can not defer the payment.

  • al2011 on 31/03/2013 - 20:17

    Is the 3k course fees or stuff like a laptop or goods purchases over $300.
    I think - and correct me if I'm wrong here - that you can depreciate goods costing more than $300 over a few years depending on their useable life expectancy eg you may claim 25% of the cost for four years if it has a life expectancy of four year

  • freemoneyhunter on 01/04/2013 - 06:21

    no 3k is course fees

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