Overview

When preparing an individual tax return in LodgeiT, you may notice that a pre-filled Taxable Payments Annual Report (TPAR) amount from the ATO Portal is not included in taxable income until you enter the details in the Business tab under Personal Services Income (PSI). However, entering the amount manually may cause the income to be counted twice.

This guide explains why this happens and how to ensure the income is included in the tax return only once.

Why does the income double up?

When you link the tax return to the ATO Portal, pre-filled TPAR information may be available in the Taxable Payments and Grants section.

When you assign the pre-filled payment a Type of income of Personal services income (PSI), the system transfers the amount to the Business/PSI section.

If you also manually enter the same amount in the Business tab, the income may be counted twice.

Example:

  • Pre-filled TPAR amount: $160
  • Manually entered PSI income: $160
  • Total income recorded: $320

Deleting the Business/PSI information entirely may also prevent the return from validating because the transferred income requires the relevant business details to be completed.

How to fix the issue

Choose one of the following methods, depending on how you want to report the income.

Method 1: Use the automatic transfer (recommended)

Use this method if you want LodgeiT to transfer the pre-filled TPAR amount automatically.

  1. Open the individual tax return.
  2. Navigate to the Taxable Payments and Grants / TPAR section.
  3. Locate the pre-filled payment of $160.
  4. Set the Type of income to Personal services income (PSI).
  5. Navigate to the Business tab and open the relevant business/PSI details.
  6. Complete the required business information and any applicable expenses.
  7. Do not manually enter the same $160 again in the gross income field if the amount has already been transferred.
  8. Validate the tax return and check that the income is included only once.

Method 2: Enter the income manually

Use this method if you prefer to declare the income directly in the Business/PSI section.

  1. Open the Taxable Payments and Grants / TPAR section.
  2. Locate the pre-filled payment of $160.
  3. Change its Type of income to Other income to prevent it from transferring a second copy into the Business/PSI income labels.
  4. Navigate to the Business tab.
  5. Enter the $160 in the appropriate gross income field under the relevant business/PSI schedule.
  6. Complete the required business information and any applicable expenses.
  7. Validate the tax return and confirm that the income has not been duplicated.

Important: Ensure the income is reported under the correct tax treatment. Selecting Other income is intended to prevent the automatic PSI transfer; it does not, by itself, determine the correct tax treatment of the payment.

Final checks

Before completing the tax return, confirm that:

  • The $160 income is included only once.
  • The TPAR information and Business/PSI schedule are consistent.
  • All required business details have been completed.
  • The return validates successfully.
  • The income classification reflects the client's actual circumstances.

If the issue persists, review the TPAR entry and Business/PSI schedule to identify any duplicate amounts before lodging the return.