One of your taxation clients, Ms Carly Benicio, has brought in her taxation records for the current financial year. You have reconciled this information and have determined her taxable income to be $80,000, PAYG withholding from her salary during the year was $19,800 and no tax offsets were available. Prior to finalising these records you receive a telephone call from Carly saying that she is also entitled to an additional claim for an outgoing of $2,000 in the current financial year, however she is not sure whether this amount is to be included in her taxation return as an allowable deduction or a taxation offset.
Explain to Carly using the tax rates in the textbook, the incremental benefit in her current year taxation return of the amount being available as a taxation offset rather than as an allowable deduction.

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The Answer of One of your taxation clients, Ms Carly Benicio, has brought in her taxation records for the current financial year. You have reconciled this information and have determined her taxable income to be $80,000, PAYG withholding from her salary during the year was $19,800 and no tax offsets were available. Prior to finalising these records you receive a telephone call from Carly saying that she is also entitled to an additional claim for an outgoing of $2,000 in the current financial year, however she is not sure whether this amount is to be included in her taxation return as an allowable deduction or a taxation offset.
Explain to Carly using the tax rates in the textbook, the incremental benefit in her current year taxation return of the amount being available as a taxation offset rather than as an allowable deduction.

One of Your Taxation Clients, Ms Carly Benicio, Has Brought