It's Monday and taxes loom again!
Taxes are such a big thing in the USA.
In Australia you do not pay tax on the first $18,000 of income and, once over 60, you do not pay tax on superannuation income. So I only filled in a tax return to get back the taxes that were taken out of any little bit of casual income I did. It only took about half an hour to do but I got back about $500 each year. The Financial year ended on June 30.
In NZ tax is paid on all income but the banks take it out of any interest automatically and it is also taken out of my government superannuation. The financial year ends on March 31 which I find strange.
The great thing was that, as an immigrant, I did not have to pay tax on my overseas income for the first 4 years so I left most of my savings in Australian banks.
However that came to an end on January 31 so I have been bringng most of my money over to NZ. Fortunately interest rates are going down in Australia but up in NZ.
However the NZ dollar has gone up versus the Aussie so I am not getting as much as when I first came over in 2010 and bought my house, lots of furniture and car. Then it was NZ$1.30 to the Au$ now only about $1.05.
I thought I would have to pay tax on my Aussie private superannuation which is my main source of income and paid an Accountant a lot of money to be given a very complicated statement which was diffcult to understand but agreed I would. I researched online and made an appointment with the Internal Revenue Department. A very nice young lady said she would look into it and finally I received a call to say that, if I could show proof that my superannuation was not taxed in Australia, it would not be taxed in NZ. I sent that document off and received a letter stating it would not be taxable. That has saved me over $2000 per year. So much for expensive accountants.
In NZ you only have to make a tax return if you want a refund or (like me now) have some overseas income. However it is done online and I have less than $200 to declare for 2 months. I will however now claim my church donations. They cannot be claimed in Australia and I do not really believe they should be.