Another tax question
Mar 6th 2010, 8:00 am
#1
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Location: Mandurah, WA
Posts: 782
Another tax question
I currently have 2 jobs, but the combined income from both will be around the $6000. Now, I was under the impression that you could earn $6000 before paying any tax, but someone said to me that if you have a second job you HAVE to pay tax on that, whether or not you earn more that $6000.
Does anyone know?
Kx
Does anyone know?
Kx
Mar 6th 2010, 8:06 am
#2
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Joined: Jun 2005
Posts: 9,316
Re: Another tax question
I currently have 2 jobs, but the combined income from both will be around the $6000. Now, I was under the impression that you could earn $6000 before paying any tax, but someone said to me that if you have a second job you HAVE to pay tax on that, whether or not you earn more that $6000.
Does anyone know?
Kx
Does anyone know?
Kx
Mar 6th 2010, 8:14 am
#3
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Joined: Mar 2009
Posts: 1,289
Re: Another tax question
I currently have 2 jobs, but the combined income from both will be around the $6000. Now, I was under the impression that you could earn $6000 before paying any tax, but someone said to me that if you have a second job you HAVE to pay tax on that, whether or not you earn more that $6000.
Here is what should happen: When you start job number 1, the payroll people will give you a form to sign. Amongst other things, the form will have a question whether this is your only job. And at the time you would have ticked "yes". (Your E'er would then have applied the tax-free threshold to that job. And as your earnings are under $6.000 you pay no tax on it.)
When you start job no 2, their payroll people will present you with the same form. This time, you can't tick that this is your only job. But the next question asks you whether you want the tax-free threshold applied to this job or not? If you tick "yes", you will not pay tax on this job (because you said it is under $6,000). But strictly speaking you should only ask one E'er to apply the tax-free threshold. So strictly speaking you should tick "no". Your E'er on this job will then withhold tax from every dollar you earn on this job. BUT: At the end of the tax year, you do your tax return and get it all back (as long as you don't earn over $15,000 in the 2010 tax year, you will get all your tax back).
If the payroll people didn't give you any forms to sign, I wouldn't worry. As long as you earn under $6,000 there is nothing to do really. And even if you earn over $6,000 but under $15,000, you do have to do a tax return at the end of the teax year - but you would not have to pay any tax or Medicare.
Last edited by ozhappy981; Mar 6th 2010 at 8:21 am.
Mar 6th 2010, 8:17 am
#4
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Thread Starter
Joined: Nov 2008
Location: Mandurah, WA
Posts: 782
Re: Another tax question
Your friend got a bit confused ....
Here is what should happen: When you start job number 1, the payroll people will give you a form to sign. Amongst other things, the form will have a question whether this is your only job. And at the time you would have ticked "yes". (Your E'er would then have applied the tax-free threshold to that job. And as your earnings are under $6.000 you pay no tax on it.)
When you start job no 2, their payroll people will present you with the same form. This time, you can't tick that this is your only job. But the next question asks you whether you want the tax-free threshold applied to this job or not? If you tick "yes", you will not pay tax on this job (because you said it is under $6,000). But strictly speaking you should only ask one E'er to apply the tax-free threshold. So strictly speaking you should tick "yes". Your E'er on this job will then withhold tax from every dollar you earn on this job. BUT: At the end of the tax year, you do your tax return and get it all back (as long as you don't earn under $15,000 in the 2010 tax year, you will get all your tax back).
If the payroll people didn't give you any forms to sign, I wouldn't worry. As long as you earn under $6,000 there is nothing to do really. And even if you earn over $6,000 but under $15,000, you do have to do a tax return at the end of the teax year - but you would not have to pay any tax or Medicare.
Here is what should happen: When you start job number 1, the payroll people will give you a form to sign. Amongst other things, the form will have a question whether this is your only job. And at the time you would have ticked "yes". (Your E'er would then have applied the tax-free threshold to that job. And as your earnings are under $6.000 you pay no tax on it.)
When you start job no 2, their payroll people will present you with the same form. This time, you can't tick that this is your only job. But the next question asks you whether you want the tax-free threshold applied to this job or not? If you tick "yes", you will not pay tax on this job (because you said it is under $6,000). But strictly speaking you should only ask one E'er to apply the tax-free threshold. So strictly speaking you should tick "yes". Your E'er on this job will then withhold tax from every dollar you earn on this job. BUT: At the end of the tax year, you do your tax return and get it all back (as long as you don't earn under $15,000 in the 2010 tax year, you will get all your tax back).
If the payroll people didn't give you any forms to sign, I wouldn't worry. As long as you earn under $6,000 there is nothing to do really. And even if you earn over $6,000 but under $15,000, you do have to do a tax return at the end of the teax year - but you would not have to pay any tax or Medicare.
Kx
Mar 7th 2010, 6:46 am
#5
Forum Regular
Joined: Jan 2009
Posts: 140
Re: Another tax question
Hi Ozhappy,
you seem to be a tax agent...aren't you? I am attending H&R Block tax course these days...did you also follow the same course..?
you seem to be a tax agent...aren't you? I am attending H&R Block tax course these days...did you also follow the same course..?
Your friend got a bit confused ....
Here is what should happen: When you start job number 1, the payroll people will give you a form to sign. Amongst other things, the form will have a question whether this is your only job. And at the time you would have ticked "yes". (Your E'er would then have applied the tax-free threshold to that job. And as your earnings are under $6.000 you pay no tax on it.)
When you start job no 2, their payroll people will present you with the same form. This time, you can't tick that this is your only job. But the next question asks you whether you want the tax-free threshold applied to this job or not? If you tick "yes", you will not pay tax on this job (because you said it is under $6,000). But strictly speaking you should only ask one E'er to apply the tax-free threshold. So strictly speaking you should tick "no". Your E'er on this job will then withhold tax from every dollar you earn on this job. BUT: At the end of the tax year, you do your tax return and get it all back (as long as you don't earn over $15,000 in the 2010 tax year, you will get all your tax back).
If the payroll people didn't give you any forms to sign, I wouldn't worry. As long as you earn under $6,000 there is nothing to do really. And even if you earn over $6,000 but under $15,000, you do have to do a tax return at the end of the teax year - but you would not have to pay any tax or Medicare.
Here is what should happen: When you start job number 1, the payroll people will give you a form to sign. Amongst other things, the form will have a question whether this is your only job. And at the time you would have ticked "yes". (Your E'er would then have applied the tax-free threshold to that job. And as your earnings are under $6.000 you pay no tax on it.)
When you start job no 2, their payroll people will present you with the same form. This time, you can't tick that this is your only job. But the next question asks you whether you want the tax-free threshold applied to this job or not? If you tick "yes", you will not pay tax on this job (because you said it is under $6,000). But strictly speaking you should only ask one E'er to apply the tax-free threshold. So strictly speaking you should tick "no". Your E'er on this job will then withhold tax from every dollar you earn on this job. BUT: At the end of the tax year, you do your tax return and get it all back (as long as you don't earn over $15,000 in the 2010 tax year, you will get all your tax back).
If the payroll people didn't give you any forms to sign, I wouldn't worry. As long as you earn under $6,000 there is nothing to do really. And even if you earn over $6,000 but under $15,000, you do have to do a tax return at the end of the teax year - but you would not have to pay any tax or Medicare.
