Donations, childcare and housekeeper tax credits (formerly rebates)
If you:
- made financial donations to a donee organisation (see "Note" below), or
- paid for childcare or a housekeeper (in certain situations)
in the last tax year, you can claim part of it back as a tax credit.
You will get a refund, unless you:
- have arrears, or
- you ask for it to be transferred to another account.
Note
A donee organisation is an entity or trust whose activities aren't carried out for the profit of any individual and whose funds are used mainly for charitable, benevolent, philanthropic or cultural purposes in New Zealand. Some of the major donee organisations include churches and social service organisations.
Who can claim?
You can claim a tax credit if you:
- earned taxable income (such as salary or wages, benefit, NZ Super, self-employed income, interest and dividends) during the year you're claiming for
- were resident in New Zealand at any time during that tax year (including non-residents)
- are an individual (not a company, trust or partnership), and
- meet the criteria in the "Do you qualify for a tax credit?" table below.
Note
You'll need to include your receipts with your claim.
Do you qualify for a tax credit?
| You can claim a tax credit for ... |
if ... |
|---|---|
| donations |
you have receipts to show that you donated $5 or more to:
See Donee organisations under "Find out more" below to check whether the organisation you donated to is approved. |
| childcare |
your child was either under 18 or unable to work because of a disability, and:
You also need to have receipts to show that you paid for childcare. Exceptions: |
| a housekeeper | you have receipts to show that you paid for a housekeeper, because you (or your partner) were disabled or physically unable to do housework. |
Maximum claims
The maximum amounts you can claim are not limited by the amount of tax you have paid or are liable to pay. However you are limited by the certain amounts as set out below under "Donations", and "Childcare and housekeeper payments".
Donations
| If donations are made in the tax year ending ... | then you can claim the lesser of ... | Find out more |
|---|---|---|
| 31 March 2009 and future years |
|
See Greater tax incentives for charitable donations for the new thresholds. |
| 31 March 2003 to 31 March 2008 |
|
|
| 31 March 2002 and previous years |
|
Childcare and housekeeper payments (for all tax years)
You can claim the lesser of:
- 33% of the total payments you have made, or
- $310 ($940 x 33%), or
- 33% of your taxable income.
Important - further limitation
The total qualifying donations, childcare and housekeeper payments you can claim can't exceed your taxable income. If you have a spouse or partner, they may claim your excess receipts (see "Sharing receipts" below.)
Otherwise, if your claim does exceed your taxable income, your donations and payments made will need to be proportionately reduced to the level of your taxable income.
Sharing receipts - married couples, civil unions and de facto relationships
If you have a:
- spouse
- civil union partner, or
- de facto partner
who is eligible to make a claim, they can claim the balance of your donation, childcare and housekeeper payments, up to the relevant maximum. This applies whether the receipt is in one person's name or in joint names. If you do share your receipts with your spouse/partner you will need to advise us of their details when you make your claim.
Donations tax credit
The maximum donation tax credits are based on individual claims. If one partner has donated more than the maximum amount, their partner can claim the balance (up to their maximum amount).
Example
Mary and John have donated $50,000 to their child's school for the tax year ending 31 March 2009. The receipt was issued in both names.
Mary's taxable income is $40,000 so she can only claim a maximum of $40,000. The remainder of the donation can be claimed by John.
His taxable income is more than $10,000, so he can claim the donation tax credit for the remaining $10,000
Childcare and housekeeper tax credit
Either partner can claim the maximum amount in full, or both partners can file separate tax credit claim forms, as long as the combined claim isn't more than the maximum amount. For example, if you paid $940 or more, you can split the claim with your partner, provided the combined total of both claims doesn't exceed $310.
Note
There are different rules for the tax year ending 31 March 2007 and previous years. If you were in a de facto relationship, both you and your de facto partner are each able to claim up to $310.
Time limit to make a claim
There is no time limit to send in a claim form. However from the 2004-05 income year, there is a four-year time limit from the end of the tax year in which the claim is received, for us to issue a refund. This time period can be extended for a further four years if the refund arises from a clear mistake or simple oversight of the individual.
Prior to the 2004-05 income year there was an eight-year time limit from the end of the tax year the assessment was made in.
Getting a tax credit claim form
To claim a tax credit you'll need to complete an IR526 claim form after the end of the tax year (31 March). See "Next steps" below for more details about claiming your tax credit.
We'll send you a form automatically in April if you claimed a tax credit last year.
Find out more
Next steps
Date published: 19 Mar 2009
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