Tax credits can be claimed by individuals (not companies, trusts or partnerships) who:
- Earned taxable income during the period being claimed for; and
- Were in New Zealand at any time during the tax year (including non-residents)
You may qualify for a tax credit for:
- Donations made of $5 or more to an approved charity
- Donations made of $5 or more to state and state integrated schools (note donations do not include tuition fees, payment for voluntary school activities, payments for classes where there is a take-home component or payments for transport to or from school activities)
The tax credit able to be claimed is up to the lesser of 33.33% of the total donation or 33.33% of your taxable income and will require valid receipts. Tax credits for payments for childcare or a housekeeper have been removed from 1 April 2012.
For further information regarding tax credits, visit the tax credits section of the IRD website.
If you claimed a tax credit in the prior year, the IRD will automatically send you a Tax Credit Claim Form in April each year. Otherwise, click here for the latest version of the IRD 526 Tax Credit Claim Form.
This information relates solely to individuals and individual income tax. Donations are claimable by companies under the ordinary deduction rules limited to taxable income. There are other tax credits which have been introduced. Please contact our office for more information on these.
Working for Families Tax Credits
Working for Families tax credits are available to families with dependent children aged 18 years or younger. These are refundable, meaning that if the credits exceed the person’s income tax liability they are able to be refunded to the taxpayer.
The Working for Families tax credits are made up of the following:
- family tax credit – credits of tax paid for each dependent child
- in-work tax credit – available to couples who work at least 30 hours a week between them and to sole parents who work at least 20 hours a week
- parental tax credit – available to working families with a newborn child who do not receive paid parental leave or income-tested benefits
- minimum family tax credit – this credit ensures a minimum annual family income for those families falling below the threshold
Inland Revenue administer the Working for Families tax credits, however taxpayers who receive an income-tested benefit will receive payments from Work and Income.
For more information just give us a call or visit the IRD website.