Paying extra tax

Answered 5 years ago

Has anyone opted to pay extra tax, and get it back at tax time in a lump sum, to help you save money?

In theory I thought this idea sounded okay, and forced me to budget more effectively. Need to know from other people if it was worth it, and that you definitely get it back!

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ANSWER

5 years ago

We tried and backfired on us spectacularly. I guess it would only work if you got the same pay each week, not a good idea if you eb and flow.

2 Reply

5 years ago

Can you tell me how it backfired?

0 Reply

5 years ago

I usually work 36 hours a week, but occasionally ill do 38-40 hours.
Did it fail due to not getting tax back or due to income you received being greatly reduced

0 Reply

5 years ago

I don't understand how it worked but we ended up owing $200 at tax time. Now that might not seem a lot but it's $200 more out of our pocket. I think a lot also had to do with overtime and going into another pay bracket, plus some back pay which did the same thing so I'd be having a real good look into it. What we do now is really over estimate with Centrelink FTB to get that payment back.

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5 years ago

that really does not sound right!!

Did you do your tax online? I once did mine online, said I owed $7000, cancelled that and went into accountant, only owed $400!!

0 Reply

5 years ago

In this case you clearly didn't pay extra tax you just screwed up your math.

4 Reply

ANSWER

5 years ago

I do it every year and we pay for a little overseas family holiday with it 😊 I usually get an 8k return

2 Reply

ANSWER

5 years ago

I used to do this when I was working and my husband does it still. It is an excellent way to save, as come tax time I always know we get a really nice return. Our accountant agrees that for us it is a good way to save. Both of us salary workers.

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ANSWER

5 years ago

When I was younger I was working two jobs and couldnt save a milky way bar in the fridge. I was bloody hopeless. I forgot to tick the tax three threshold box for my main job so received about $15,000 back one year. I actually opened an online business with it (before every man and his dog with a computer did) and then I sold that business for $800,000 in 2015 so it was probably the best mistake I've ever made. I'd never have saved that much otherwise, of course your money would be better in high interest savings but if you're terrible at saving go for it.

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