Why is my estimated Tax refund lower when I enter my two incomes (One of which does NOT claim the tax free threshhold?)?
I live and work in AUS:
Income 1: $42310 gross with tax of $9266 so far
Income 2: $11078 gross with tax of $2635
When combined and placed into tax calculator the estimation is that I will receive $2134 back
If I just claim enter them separately, I will receive $3487 if it was just income 1, or $2635 if it were just income 2, this is significantly more. I understand the more you earn, the less you receive, but I figured I would at least be refunded more as my second income is at a high tax rate.
I am absolutely useless at this and would love someone to help explain haha
- StooLv 71 year agoFavourite answer
Your overall tax bill is based on your total income - that determines what tax you owe, and what tax you paid over the year offsets that. If a combination of incomes puts you into a new tax bracket that neither of your jobs could have known about, you'll have to pay more. Either job can only estimate your tax obligations based on what they know and control, which is their salary to you. If you make other income, that's on you to balance off.
- Aussie BattlerLv 71 year ago
They get added together genius.
- PearlLv 71 year ago
you need to ask the place that did your taxes about it