Aussies stunned after finding out they OWE the ATO money when going to lodge their tax returns - here's what to look out for
- Many people owe the ATO money this year
- Thousands have already lodged their tax returns
- READ MORE: Federal government proposes sugar tax
A number of frustrated Aussies have gone to lodge their tax return only to learn they owe money - including one worker who was left with a $7,000 bill.
The young woman, from Western Australia and who works as both a disability support worker and foodcourt assistant, found out this week she owes the Australian Taxation Office $7,118.
She said she works seven days a week and has no idea as to why she owes the ATO so much, instead believing she would receive some of her tax back.
'I work 7 days a week, working in my 2 jobs a day most of the week, and that is what I get,' she said in a TikTok which has been viewed more than 200,000 times.
While she initially believed she may have claimed the tax-free threshold on both jobs, she has since confirmed this was not the case.
The young worker is now planning to see an accountant to figure out why she owes so much.
If a person claims the tax-free threshold on two jobs, it means the second job is taxed at a higher rate.
Residents can claim the tax-free threshold on the first $18,200 they earn, but only from one job, and usually the employer that pays the higher wage.
The young woman, from Western Australia and who works as both a disability support worker and foodcourt assistant, found out this week she owes the Australian Taxation Office $7,118
'I want to cry so bad,' the woman wrote.
Others shared their similarly unpleasant experiences with the ATO this week.
'Literally everyone this year,' someone commented.
'I work two jobs and only claimed the threshold on one of them and I still owe $9,000,' another woman wrote.
'Same, I make barely anything as an 18-year-old but I owe them $3,500,' one said.
'I feel you, I'm already paying off one debt of $3,700 and I expect to owe another two-to-three thousand this year,' a fourth added.
'Can we all cry about our debt?'
One woman confessed that her 'toxic trait' was planning out how to spend the money from an expected tax return before finding out that she actually owed money instead
Another woman who uploaded a similar video showed her ATO tax calculator estimated that she owed the government $4,326.
'My toxic trait is thinking I was going to get money back and be able to go on a holiday,' she wrote.
Another reason people might owe money to the ATO is if they have HECS-HELP repayments.
Some employers do not automatically deduct these repayments from each paycheck which can result in a huge debt from the ATO at tax time.
According to ATO assistant commissioner Rob Thomson, people should avoid rushing to lodge their tax returns in early July.
Mr Thomson said people who lodged their return in early July were twice as likely to make a mistake in their tax return, especially people who received income from multiple sources.
From late July, most information from employers, banks, government agencies and health funds will be automatically loaded into your tax return, regardless of whether you use a registered tax agent or lodge your own return.
'Tax time is not a race, and there is a much higher chance that your return will be missing important information if you lodge in early July,' he said.
'We see lots of mistakes where people who rush to lodge early have forgotten to include interest from banks, dividend income, payments from government agencies and private health insurance details.'
Tax returns must be completed each year by October 31 either online through mygov or the ATO app.
Tax returns can also be lodged in paper forms or by requesting a registered tax agent to file the paperwork on your behalf.
Anyone lodging a tax return needs to make sure they have all the relevant financial information available.
This includes an income statement or payment summary, receipts and/or payments for expenses that will be claimed as deductions, and a private health insurance statement.
Salaried employees will need to wait until their employers mark their income as tax ready before they complete their tax returns.
