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Can I claim tax deductions across multiple jobs?

Newbie

Views 215

Replies 3

Sorry if this question has been asked before, I just can't find the answer anywhere.

Suppose I have 2 jobs.

Job A 

Income = 70,000

Deductions = 1000

 

Job B

Income = 1500

Deductions = 6000

 

Since we say total income is 71,500 then can we say total deductions is 7000? i.e. Since job B's deductions exceed income earned, can I use the 4,500 excess deductions from job B to reduce my taxable income from job A? I don't know if it helps any, but know that both jobs are unrelated.

 

Hence:

Total income = 71,500

Less deductions = 7,000

Assessable income = 64,500

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 2

Hi @bemyally

 

Your deductions are processed against your total assessable income, not which job they relate to. You can definitely claim more value in deductions than you earned income from one source. Smiley Happy

3 REPLIES 3

Most helpful response

ATO Community Support

Replies 2

Hi @bemyally

 

Your deductions are processed against your total assessable income, not which job they relate to. You can definitely claim more value in deductions than you earned income from one source. Smiley Happy

Newbie

Replies 1

Thanks a lot! I just had another follow-up question then.

Suppose I salary sacrifice 100% of Job B's income. In that case, can I still claim the deductions from Job B on Job A?

i.e.

Job A

Income = 70,000

Deductions = 1,000

 

Job B

Income = 1500 (salary sacrificed)

Deductions = 6000

 

Total income = 70,000

Less deductions = 7,000

Assessable income = 63,000

ATO Community Support

Replies 0

Hi @bemyally,

 

As @BlakeATO advised, we look at your total income and deductions for the year. If you have assessable income and deductions it just means the assessable income will be reduced by the amount of deductions. If you have salary sacrificed, say into super, that is still reported at Income Tests section of the return. It just means we don't apply tax to that amount.

 

We look at your overall income and deductions when you lodge and the relevant tax will be applied. You can always amend if you need to include extra information, or adjust information already reported.

 

Links-

myTax instructions.

Income tests.

Work related deductions.

 

All the best.