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Tax for tutoring

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Newbie

Views 2883

Replies 6

Hi, I earn some money tutoring high school students. I am not employed by any business and I get paid in cash. Does this count as assessable income?

1 ACCEPTED SOLUTION

Accepted Solutions
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Best answer

Taxicorn

Replies 5

Yes it does and needs to be declared at item 14 'Personal Service Income'.

 

You will also be able to claim deductions against this income.

 

6 REPLIES 6
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Best answer

Taxicorn

Replies 5

Yes it does and needs to be declared at item 14 'Personal Service Income'.

 

You will also be able to claim deductions against this income.

 

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Newbie

Replies 4

Thank you for your reply! I just came across information on job vs hobby classification and I’m still not sure if it counts as a business because it is very small scale. If I list the money earned as income, are there any penalties for potentially filing incorrectly?
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Community Support

Replies 3

Hi @0123,


Welcome to ATO Community and thanks for your post! We can provide you with general information in this forum. It’s important to understand the differences between a hobby and a business for tax and other purposes.  We have a video that may help you determine if you are in business yet.


As an alternative, you can also submit a request for advice through our early engagement team.

 

I hope this helps, @JodieM

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Newbie

Replies 2

Good question. What is the criteria for deducting tax from the tutoring income? Do we use the data presented in the PAYG withholding weekly tax timetable or the PAYG installment? Is the tax paid weekly or monthly and is this done via Bpay or ATO payment portal?

 

Thanks

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ATO Certified

Community Support

Replies 1

Hi @s2020

 

Thanks for your post.

 

If your scenario is similar to the original poster, whether you will need to start PAYG instalments will depend on your circumstances. If you are required to, the amount you need to pay will also depend on your circumstances.

 

For more information about PAYG instalments and how much you need to pay, you can check out our website.

 

When you lodge your tax return, we may determine that you need to start making PAYG instalments. If so, we will let you know. Alternatively, you can start paying PAYG instalments voluntarily.

 

They are generally paid to us quarterly although you may be able to choose a once or twice a year option. Certain corporate tax entities are required to pay monthly. No matter how often you are required to pay, you have several payment options.

 

For more information about how often you lodge and pay as well as how to pay, once again refer to our website.

 

Hope this helps.

 

Thanks, ChrisR

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Newbie

Replies 0

Dear Chris

 

Thank you for the prompt reply.

 

I have considered all that were mentioned and have already consulted my accountant on the best way forward.

 

Kind regards

s2020