Issue
The Adjusted Taxable Income (ATI) is showing $464,254, even though the return only reflects Taxable Income of $34,642, and there appears to be no obvious explanation for the higher amount.
Cause
This can occur when a Date of Death has been recorded in the tax return.
In certain circumstances, the Australian Taxation Office (ATO) applies specific rules when calculating Adjusted Taxable Income (ATI), which may result in an amount that differs significantly from the taxable income shown in the return.
Resolution
- Open the tax return and review the taxpayer's details.
- Check whether a Date of Death has been entered.
- Confirm that the date is correct and was intended to be included.
- If the Date of Death is accurate, the ATI calculation may be working as designed according to ATO requirements.
Additional Information
For more information on how the ATO calculates Adjusted Taxable Income, refer to:
ATO – Adjusted Taxable Income for You and Your Dependants (2025)
https://www.ato.gov.au/forms-and-instructions/individual-tax-return-2025-instructions/supporting-information-individual-tax-return-2025/adjusted-taxable-income-for-you-and-your-dependants-2025
Summary
A significantly higher Adjusted Taxable Income is often linked to the presence of a Date of Death in the return. Verify the date recorded and refer to the ATO guidance for further details on ATI calculations.