How to Calculate Your Tax Return

Mar 30, 2021

calculating tax refund

Introduction

Calculating one’s tax returns is something that many people find perplexing, as most aren’t sure what formula to use to compute their returns. Fortunately, the Australian Taxation Office (ATO) has standard guidelines in place to help you calculate your returns quickly and accurately.

Also read: What Documents Are Needed For A Tax Return?

Using the Standard Income Tax Estimator

Calculating your returns via ATO’s standard online tax estimator calls for extensive information. You need to supply data for the following items:

  • Income Year;
  • Resident Status in the specified income year;
  • Marital Status during the specified income year;
  • Declaration of tax adjustments or offsets.

You will need to manually encode information for the following to compute the value of your returns:

  • Total income, as well as any withholding tax and relevant deductions;
  • Income tests;
  • Offsets;
  • Other claimable amounts;
  • Medicare and private health insurance.

Take note that you cannot use this calculator if any of the following conditions applies to you:

  • You’ve only had a spouse for part of the year;
  • You received payment upon termination of employment;
  • You received a lump-sum payment upon retirement;
  • You were under 18 during the stated income year; or
  • You have superannuation concessional contributions.
calculate-tax-refund

Using the Simple Tax Calculator

The simple tax calculator only computes the taxes you owe on your income. Your taxable income and your residency status for the specified income year serve as the basis for this computation.

The following process will only take two to 10 minutes of your time:

  • Specify the income year;
  • Enter the amount of your taxable income;
  • Specify your residency status (and here you must state a specific number of months); and
  • Click SUBMIT to automatically calculate the estimated tax.

Need Help? Call Perth Mobile Tax Today

We provide a better and faster way to do your taxes. Give us a call at 1-300-001-829.

Related Posts:
• What Can You Claim On Your Tax Return?
• How Long Does A Tax Return Take?