Stirts
10th March 2009, 12:36
Independent earner tax credit (IETC)
The IETC is for New Zealand tax residents who earn an annual net income of between $24,000 and $48,000 in a tax year (1 April to 31 March) and don't receive:
Working for Families Tax Credits an income tested benefit, including:
domestic purposes benefit
emergency benefit
independent youth benefit
invalids' benefit
sickness benefit
unemployment benefit
widows' benefit
NZ Super
a veteran's pension, or
a foreign equivalent of any of the above.
From 1 April 2009 eligible tax payers earning between $24,000 and $44,000 will be entitled to an extra $10 each week. For eligible tax payers earning over $44,000 the independent earner tax credit decreases by 13 cents for every additional dollar earned.
The IETC will increase to $15 a week from 1 April 2010.
If you work for a salary or wage, you will receive the IETC through your pay
If you will receive the tax credit through your pay after 1 April 2009 you'll need to choose a new tax code: either ME or MESL (if you have a student loan).You'll need to let your employer know by completing a new Tax code declaration (IR330) form. You can only use this new tax code for your main job or source of income. Updated IR330 forms will be available from the start of March 2009.
Linky for form :)
http://www.ird.govt.nz/resources/d/d/dd4499004bbe578db052f0bc87554a30/ir330.pdf
The IETC is for New Zealand tax residents who earn an annual net income of between $24,000 and $48,000 in a tax year (1 April to 31 March) and don't receive:
Working for Families Tax Credits an income tested benefit, including:
domestic purposes benefit
emergency benefit
independent youth benefit
invalids' benefit
sickness benefit
unemployment benefit
widows' benefit
NZ Super
a veteran's pension, or
a foreign equivalent of any of the above.
From 1 April 2009 eligible tax payers earning between $24,000 and $44,000 will be entitled to an extra $10 each week. For eligible tax payers earning over $44,000 the independent earner tax credit decreases by 13 cents for every additional dollar earned.
The IETC will increase to $15 a week from 1 April 2010.
If you work for a salary or wage, you will receive the IETC through your pay
If you will receive the tax credit through your pay after 1 April 2009 you'll need to choose a new tax code: either ME or MESL (if you have a student loan).You'll need to let your employer know by completing a new Tax code declaration (IR330) form. You can only use this new tax code for your main job or source of income. Updated IR330 forms will be available from the start of March 2009.
Linky for form :)
http://www.ird.govt.nz/resources/d/d/dd4499004bbe578db052f0bc87554a30/ir330.pdf