Why you may have a tax bill if you get the independent earner tax credit
There are some circumstances where you may have tax to pay at the end of the year due to the independent earner tax credit (IETC).
| If you... | then ... |
|---|---|
| have claimed the IETC during the year through your wages when you weren't entitled to it |
you may have tax to pay at the end of the year. |
| have used more than one ME or ME SL tax code at the same time during the year |
you'll have received more of the IETC than you were entitled to and this means you may have tax to pay. Use our work out your tax code decision tree to determine the correct code. |
| have received an increase in income during the year which means your annual income is over $44,000 |
you may have been overpaid earlier in the year and could end up with a tax to pay for the difference. The IETC you're entitled to is reduced by 13 cents for every dollar you earn over $44,000. |
| have received an increase in income during the year which means your annual net income is over $48,000 | you'll no longer be entitled to the IETC for that year and any entitlement already received could result in tax to pay for that amount. |
| have an annual income of less than $24,000 and have claimed the IETC through your wages | you may have received IETC when you weren't entitled to it. This means you may have tax to pay. |
Date published: 06 Mar 2009
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