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Based on illustrations 01 and 02 on child benefit, I have done this:
illustration 01: Catherine
Child benefit 1056
ANI 54000
less: income limit (50000)
excess 4000
% restriction: 4000/100=40
so, restriction (1056*40%) (422)
so, child benefit 634illustration 02: Victoria
Child benefit 3147
ANI 77000
Income limit: (60000)
so, child benefit NILIs this right?
I have a feeling that there is something wrong. If so, then where and what?
And what, then, is right?We are not concerned with computing the net amount of child benefit retained by the taxpayer, which is what you are calculating, we need to compute any child benefit CHARGE that we must then include in our calculation of the Income Tax Liability of the taxpayer as per the examples in the course notes.
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