JMcKie Posted July 10 Share Posted July 10 Hi All, I was just wondering if anyone could clear up something for me. I was made redundant during the last financial year (2023-2024) ending in June. I was given an amount that is categorised under Lump Sum D. However, my tax return estimate is showing that I potentially owe money. I am certain this is due to my redundancy payment as that is the only difference to the previous financial year (2022-2023). After doing some reading up on the relevant categories, I am of the knowledge that I was paid tax free. Is this a common scenario where it can be repayable to a certain extent at tax time? Thanks in advance. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 10 Share Posted July 10 17 hours ago, JMcKie said: Hi All, I was just wondering if anyone could clear up something for me. I was made redundant during the last financial year (2023-2024) ending in June. I was given an amount that is categorised under Lump Sum D. However, my tax return estimate is showing that I potentially owe money. I am certain this is due to my redundancy payment as that is the only difference to the previous financial year (2022-2023). After doing some reading up on the relevant categories, I am of the knowledge that I was paid tax free. Is this a common scenario where it can be repayable to a certain extent at tax time? Thanks in advance. Are you in Australia? If so, it's not going to cost much to go to a tax agent like H & R Block to get confirmation. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted July 11 Share Posted July 11 Maybe check with your former employer's payroll department to make sure the sum has been reported correctly to the ATO? Best regards. Quote Link to comment Share on other sites More sharing options...
Alan Collett Posted July 11 Share Posted July 11 Also: https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/engaging-a-worker/in-detail/taxation-of-termination-payments/redundancy-and-early-retirement#ato-Workingoutandreportingthetaxfreeamount Note that it is possible not all of your redundancy payment was tax free ... Best regards. Quote Link to comment Share on other sites More sharing options...
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