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withheld tax from childs Bank accout Lock Rss

can anyone tell me how to aviod getting withheld TFN tax from my DD's bank account. Every month they take $4 or $5 out for withheld TFN...

Do I:
A/ get her own TFN???

b/ give them mine????

TIA

Owen 26.2.04 and Hannah 17.9.07


can anyone tell me how to aviod getting withheld TFN tax from my DD's bank account. Every month they take $4 or $5 out for withheld TFN...

Do I:
A/ get her own TFN???

b/ give them mine????

TIA



How old is your DD? If she's a child and the account is in her name she should not be getting taxed? I'd go and have a chat to the staff.

How old is your DD? If she's a child and the account is in her name she should not be getting taxed? I'd go and have a chat to the staff.


she is 3 but the account is in trust with my name too...

Owen 26.2.04 and Hannah 17.9.07

As PP said, if the account is in her name (not in trust with your name attached) she shouldn't need to supply a tax file number, children shouldn't be charged tax.

If it is in trust in your name as well then you will need to declare any interest earned in this account as your own, so then you will need to disclose your personal TFN.

What type of acc is it? I work for a bank and Withholding Tax is usually only charged once a year, not monthly...

she is 3 but the account is in trust with my name too...


Then you will need to disclose your TFN

=)
if the account is in your name then you need to tell the bank your TFN as you are the trustee and your daughter is the beneficiary. that way you dont have to pay tax file number withholding tax. it is actually you that is being charged the TFN withholding and not your daughter.

if you can open a bank account in your daughters name (usually the child is the owner of the account, the parent is the signatory, but the child is not allowed to operate on the account - even once they reach the age that they are able to operate an account on their own the signatory is the one that would need to close the account IYKWIM). those sorts of accounts are childrens accounts and are exempt from tax.

Thanks I might call the bank...

Owen 26.2.04 and Hannah 17.9.07

child accounts can get tax on them if they are an interst bearing account. they have to get a certain amount in them for it to happen,I think bout $420 per year. they then need their own TFN not a parents.
here is the link for the ato. http://www.ato.gov.au/individuals/content.asp?doc=/content/11900.htm

child accounts can get tax on them if they are an interst bearing account. they have to get a certain amount in them for it to happen,I think bout $420 per year. they then need their own TFN not a parents.
here is the link for the ato. http://www.ato.gov.au/individuals/content.asp?doc=/content/11900.htm

wow if i was earning that much interest on my kids account i think i would be employing an accountant to look after my affairs lol

well i called the bank and they said that the kids accounts have a dummy TFN applied to them as they should not have been receiving this Witheld Tax. She has fixed it from their end and I should be refunded the amount that has been taken out over the last 3 months when I do my TAX...

Owen 26.2.04 and Hannah 17.9.07


well i called the bank and they said that the kids accounts have a dummy TFN applied to them as they should not have been receiving this Witheld Tax. She has fixed it from their end and I should be refunded the amount that has been taken out over the last 3 months when I do my TAX...

Hi, as it's the banks error, you can requested that they refund the amount now into your account. You shouldn't have to wait until you do your tax, it is there responsibility to correct this as it is there error and they admitted such. What they have said is true thou, but asking you to fix it yourself at the end of the tax year is fobbing you off.
we had the CBA take withholding tax from our term deposits incorrectly and they told us the same thing, to claim it come tax time.

dh told them to screw that and to put it back into our accounts right away and they did it within the week.
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