Mark's taxable income is $45,000. He received a genuine redundancy pay of $90,000 at the age of
Question:
Mark's taxable income is $45,000. He received a genuine redundancy pay of $90,000 at the age of 50, after 10 years of service. What will be his tax outcome?
His payroll will withhold tax at 32% on the taxable portion of the $90,000 and he will receive a tax refund after lodging his tax return.
His payroll will withhold tax at 17% on the taxable portion and no amount will be included in his assessable income as a result of this payment.
He will pay 39% marginal tax rate on his total assessable income of $135,000 as a result of this payment.
He payroll will withhold tax at 32% on the taxable portion of the $90,000, and no amount will be included in his assessable income as a result of this payment.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill