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Re: Claiming expenses

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Newbie

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My son is under 18 and has been earning a small amount of money from his casual job this financial year.  He doesn't earn enough to go over the tax free threshold but does have expenses such as uniform, laundry, travel to training courses etc.  Can he do a NIL tax return this year but carry the expenses over until he does go over the tax free threshold and offset them at a later stage ?

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Anonymous

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Generally expenses can only be claimed as a deduction in the financial year that they are incurred and offset against assessable income earnt in that same year and it does not make any difference if someone is under the tax free threshold.

 

If your son completes a tax return, he must disclose all of the income that he has earnt during that financial year as it is assessable income even if it is under the threshold. 

 

Your son can not just lodge a NIL return because he did earn assessable income, and if he did lodge a NIL return just to try and claim expenses in following years then he would be making a false or misleading statement.

 

Just remember its a tax free "threshold", which means assessable income earnt up to $18,200 will not be subject to tax.

 

Some people think tax free "threshold" means that the income earnt up to the $18,200 is not assessable income and does not have to be disclosed in an income tax return but in fact it is assessable income and must be disclosed in an income tax return.

 

For further assistance on this you / your son can contact the ATO on 13 28 61

 

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Megastar

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Hi, 

Firstly, the deductions can't be carried forward.

 

Secondly, self-education expenses (like travel to training courses, course fees, etc) are deductible  only when the course you undertake leads to a formal qualification and meets the following conditions.

The course must have a sufficient connection to your current employment and:

  • maintain or improve the specific skills or knowledge you require in your current employment, or
  • result in, or is likely to result in, an increase in your income from your current employment.

So you may not be claim the training courses travel or tution fees as deduction

 

Hope it helps 

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ATO Certified

Anonymous

Replies 1

Generally expenses can only be claimed as a deduction in the financial year that they are incurred and offset against assessable income earnt in that same year and it does not make any difference if someone is under the tax free threshold.

 

If your son completes a tax return, he must disclose all of the income that he has earnt during that financial year as it is assessable income even if it is under the threshold. 

 

Your son can not just lodge a NIL return because he did earn assessable income, and if he did lodge a NIL return just to try and claim expenses in following years then he would be making a false or misleading statement.

 

Just remember its a tax free "threshold", which means assessable income earnt up to $18,200 will not be subject to tax.

 

Some people think tax free "threshold" means that the income earnt up to the $18,200 is not assessable income and does not have to be disclosed in an income tax return but in fact it is assessable income and must be disclosed in an income tax return.

 

For further assistance on this you / your son can contact the ATO on 13 28 61

 

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Taxicorn

Replies 0

He can do a non-lodgement if he hasn't paid any tax.

(assuming that he is under the threshold from ALL income sources).

 

Expenses can not be claimed.

 

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