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
- Best Start Tax Credit is payable to parents from the child's birth until he or she turns three. Unlike the other credits this is not income tested in the child's first year.
- 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.