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Did you know that if you are self-employed or earn income from other sources that you need to make your own student loan repayments?
Not only that, but the amount of your repayments will also depend on your total and adjusted net income says Kelly Tutbury, Accountant and Managing Director at Tutbury & Associates Limited.
Firstly you will need to declare your adjusted net income. At the end of your tax year you may need to file a tax return. This tax return will hinge on where your adjusted net income comes from. Losses should not be included when working out your adjusted net income.
The end-of-year repayment is 12% for every dollar you earn over the annual repayment threshold ($19,448).
If your end-of-year repayment obligation is $1,000 or more, you will need to make an interim payment obligation for the next tax year. “This interim payment will be added to the following year's end of year repayment obligation,” advises Kelly.
You must estimate your total adjusted net income. This estimate is based on what you expect to earn, including all other income types and adjustments.
Once you've made your estimate you can't change back to the standard option for the rest of the year. But, you can re-estimate as many times as you like up to your final interim payment date.
“It's always best to sort out your payment as soon as you can. And if you need assistance, we can help! Our friendly team of experts will be happy to guide you through the process,” adds Kelly.
About Tutbury & Associates Limited.
Tutbury & Associates Limited has worked hard to build their reputation of excellent customer service by working interactively with their clients and making sure that their clients get value for money. They are ideal for ideal for trades people, or anyone who wants to grow their business.
Contact Tutbury & Associates Limited:
Phone: 07 576 2194
Address: 23 Myres Street Tauranga
Phone: 0274 587 724