Individual income tax return guide 2011 - Inland Revenue Department

66
IR 3 INDIVIDUAL RETURN GUIDE
Question 26 Expenses and deductions
If you’ve kept some of the income
To help determine your allowable deduction, you’ll first need to
determine your caregiver’s gross payments. Complete worksheets 1 to 3
and include the amount from Box 5 at Box 26 of your IR 3 return.
Please attach a copy of the payments you made to your caregiver(s) with
your IR 3.
Calculating your deduction
Worksheet 1. Calculating the gross payments you have passed to your
caregiver that had 11.5% deducted
Print in Box 1 the total amount you paid to
your caregiver that had 11.5% tax deducted.
1
Divide Box 1 by 0.885.
Print the answer in Box 2. This is the gross payment you made to your caregiver.
2
If any of your payments had the 25.5% no-notification tax rate applied
you’ll need to complete the following worksheet.
Worksheet 2. Calculating the gross payments you have passed to
your caregiver that had 25.5% tax deducted
Print in Box 3 the total amount you paid to
your caregiver that had 25.5% deducted.
3
Divide Box 3 by 0.745.
Print the answer in Box 4. This is the gross payment you made to your caregiver.
4
Your allowable deduction
Worksheet 3. Calculating your allowable deduction
Add Boxes 2 and 4 together and print the
answer in Box 5.
5
This is the allowable deduction. Include this amount in Box 26 of your
return.
Please attach a copy of the payments you made to your caregiver(s) with
your IR 3.
Please use worksheet 1 on page 67 to calculate the tax deducted, which
you’ll need to include at Question 12A.