Independent Earner Tax Credit - A friendly reminder

[Stirts]

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...4a30/ir330.pdf

[Mully]

Well, bollocks to that. I don't get it.

[Stirts]

It really sux arse to say that I do

But yaye for me a whole $10 extra ..... two more bourbons at Drivers

[saul]

It really sux arse to say that I do

But yaye for me a whole $10 extra ..... two more bourbons at Drivers

Cool I is thirsty

[Stirts]

Cool I is thirsty

I'd buy you a water anyday

[Oakie]

I lucky! With the IETC and the shifting of the top level in the tax bracket where you pay 21 cents in the dollar ... from $40k up to $48k I'm $15 and a bit better off a week. A nice bottle of wine a week!

I feel sorry for the guys under $24k though. Their total tax actually goes up as the tax rate doesn't change but the ACC levy does shuffle up a bit. (Only by $2 or $3 dollars though)

And hmmm. KiwiSaver contributions from 2% from 1 April. Be interesting at my work to see how many decrease to 2% and how many new members jump in at 2%.

[slofox]

Anything for the self employed (like me?) Doubt it...

Our local council here just voted themselves a 5% wage increase, which will come from increased rates. I am looking at a 25% decrease in turnover this year. Now THAT'S equitable innit??

[Stirts]

And hmmm. KiwiSaver contributions from 2% from 1 April. Be interesting at my work to see how many decrease to 2% and how many new members jump in at 2%.

KiwiSaver is the one thing I have chosen to ignore for now.....what a joke when it first came out. Our poor Payroll Admins were tearing their hair out!!!

Anything for the self employed (like me?) Doubt it...

"If you are self employed or a contractor you can claim the tax credit for the first time on your IR3 return for the year ending 31 March 2010"

Our local council here just voted themselves a 5% wage increase, which will come from increased rates. I am looking at a 25% decrease in turnover this year. Now THAT'S equitable innit??

Why for you sound surprised? Silly boy....you got sucked into thinking they give a shit about their community!!!

[slofox]

1. "If you are self employed or a contractor you can claim the tax credit for the first time on your IR3 return for the year ending 31 March 2010"



2. Why for you sound surprised? Silly boy....you got sucked into thinking they give a shit about their community!!!

1. Thanks for that info...hope I make it that far.....

2. I'm not surprised - just annoyed...greedy bastards...