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Adhoc income received for acting and modelling work

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Hello everyone.

I am retired and over 65. I have investment income which I lodge each year as PAYG person estimate about $70k pa

I have been doing some adhoc acting modelling work  through an acting agent and some freelance work.

I registered an ABN in 2017 as some companies will not give me work without it.

Prevously I have added this "extra" income into my usual tax return. 

This year (2018/19)I have generated about $10k in income from my acting work. I have deductions I wish to claim  eg agents commission and costs of talent web sites as well.

Most of the clients I provided ABN but have not held back Tax so I have included this extra income in my usual return.

 

My questions:

The tax return is complicated and asks if this is service income.

The form is confusing to say the least.

My interpretation is  yes it is but could also be counted as a income as a sole trader and I should lodge a separate return for the $10k which will be below the tax threshhold and not taxed. 

I note when I included the extra income in my PAYG income it does not allow me to claim the deductions for agents commission, which is one of the main expenses I have in the acting part of my income.

So I am confused what to do with this additional income. This is not a regular income and fluctates over the year.

HELP PLEASE!

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Most helpful response

Anonymous

Replies 0

Hi @dirkn 

 

Taxable income is based on assessable income from all sources (including income as sole trader) less allowable deductions, and all this goes on the one tax return but under different sections of the return, just follow the tax return instructions.   

 

Every taxpayer is entitled to one tax free threshold for their total taxable income, and not against seperate types of income earnt and this means the $10,000 business income is not treated seperately for tax free threshold purposes and you will be taxed on your total taxable income which will include the $10,000 business income. 

 

If you find all this very confusing it might be time to see a tax professional (tax agent) at least for this year and then you will know how to fill in the tax return in future years, or if you like give the ATO a call and have them walk you through the tax return.

2 REPLIES 2

Champion

Replies 0

Hi @dirkn 

 

You'd be best to treat the acting income as business income and then offsetting it with any costs involved - all under the business section of the tax return.

More on lodging tax online 

Most helpful response

Anonymous

Replies 0

Hi @dirkn 

 

Taxable income is based on assessable income from all sources (including income as sole trader) less allowable deductions, and all this goes on the one tax return but under different sections of the return, just follow the tax return instructions.   

 

Every taxpayer is entitled to one tax free threshold for their total taxable income, and not against seperate types of income earnt and this means the $10,000 business income is not treated seperately for tax free threshold purposes and you will be taxed on your total taxable income which will include the $10,000 business income. 

 

If you find all this very confusing it might be time to see a tax professional (tax agent) at least for this year and then you will know how to fill in the tax return in future years, or if you like give the ATO a call and have them walk you through the tax return.