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Re: How to claim back TFN withholding tax on bank accounts for under 18 years old

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Hi, as a student with no income if the bank charges me withholding tax for not having my own TFN noted on my bank account what do I do. They said I would have to file a Tax Return for 2017. If I don't have any other income other than bank interest my question is on the tax return question A1 for under 18 year olds at J do I enter "0" or the amount of interest earned for the year. I have read the instructions and don't think any points apply to me unless bank interest is regarded as income from investment of amounts referred to in Question 2 in A1 instructions. If someone can clarify and let me know then I can file the return. Thanks.

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Hi @Rose5,

 

Welcome to our Community - @smouldery had provided some very useful information for you. As mentioned it is recommended to apply for a TFN to make this easier for you in the future.

 

If you've received interest in your bank account during the financial year, you need to work out if this is considered to be excepted income. If you have access to the bank account and you only deposit money from pocket money, birthday or Christmas presents, this may not be considered excepted income and you'll have to pay tax on this interest at the higher rate.  

 

If you don't have a TFN you'll need to complete a paper tax return. The due date for lodgment is the 31st October so if you won't be able to submit your tax return by the due date, you can phone us to request an extension of time.

 

You can find helpful information on how to complete this section, including step by step instructions on our website. Alternatively, you need further advice completing your tax return you can phone us on 13 28 61, between 8am - 6pm, (AEDT), Monday to Friday to speak with an operator.

 

Hope this helps.

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First off i'd reccomend that you get a TFN so that this doesn't happen in the future - it's free and the application process is pretty easy, and by the sounds of it it'll save you a lot of hassle in the future.

 

In terms of completing the return, the relevant instructions page states to:

"Add up any of the following income amounts which you have shown on your tax return:

  • employment income
  • taxable pensions or payments from Centrelink or the Department of Veterans' Affairs
  • compensation, superannuation or pension fund benefits
  • income from a deceased person's estate
    • as a result of another's death or family breakdown, or
    • to satisfy a claim for damages for an injury you sufferedincome from property transferred to you 
  • income from your own business
  • income from a partnership in which you were an active partner
  • net capital gains from the disposal of any of the property or investments referred to above
  • income from investment of amounts referred to above.(Emphasis mine)

This would indicate to me that the only bank interest you would include here would be the interest resulting from the investment of money from another item on this list.

 

If, for example, $5000 of employment income was placed in a bank account, the interested generated from that $5000 would likely be included here. However, money placed into the account that was not from one of the sources on the above list, it would seem that any interest derived would not be included here.

 

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This is my personal view; I’m an ATO employee who chooses to help out here in my own time.

 

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Hi @Rose5,

 

Welcome to our Community - @smouldery had provided some very useful information for you. As mentioned it is recommended to apply for a TFN to make this easier for you in the future.

 

If you've received interest in your bank account during the financial year, you need to work out if this is considered to be excepted income. If you have access to the bank account and you only deposit money from pocket money, birthday or Christmas presents, this may not be considered excepted income and you'll have to pay tax on this interest at the higher rate.  

 

If you don't have a TFN you'll need to complete a paper tax return. The due date for lodgment is the 31st October so if you won't be able to submit your tax return by the due date, you can phone us to request an extension of time.

 

You can find helpful information on how to complete this section, including step by step instructions on our website. Alternatively, you need further advice completing your tax return you can phone us on 13 28 61, between 8am - 6pm, (AEDT), Monday to Friday to speak with an operator.

 

Hope this helps.

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