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Independent Earner Tax Credit

 
Grange Associates Ltd - 18 April 2012

The Independent Earner Tax Credit is a credit of up to $10 per week for individuals who meet the following criteria:

- You are a New Zealand tax resident, and
- Your annual income is between $24,000 and $48,000, and
- You or your partner:
   -
are not entitled to Working for Families Tax Credits, and
   -
do not receive an overseas equivalent of Working for Families Tax
     Credits, and
- You are not receiving any of the following:
   - An income-tested benefit
   - NZ Super
   - Veteran’s Pension
   - An overseas equivalent of the above.

From 1 April 2009, if your annual income is between $24,000 and $44,000 you will receive a tax credit of $520 ($10 per week).

If your annual income is between $44,001 and $48,000 your annual entitlement to the tax credit decreases by 13 cents for every dollar earned over $44,000.

If you believe you are entitled to the Independent Earner Tax Credit and receive PAYE wages or salary, check that your PAYE tax code is correctly noted as “ME”, rather than “M” so the credit is automatically applied to your PAYE wages.

If we prepare your tax return for you, we will ensure your entitlement to the Independent Earner Tax Credit is assessed correctly.

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All information is correct at the date of article publication. Please note we provide the information as a service only. Accordingly, the contents are not intended as a substitute for specific professional advice and should not be relied upon for that purpose.   


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