Skip to Content
MenuClose

myIR, payments and more

Income types and adjustments for Working for Families Tax Credits and student loans

Find out about income types and adjustments so that you receive the correct amount of Working for Families Tax Credits (WfFTC) and make correct student loan repayments.

On this page:

Income we use to calculate your entitlements

We use the income that is included in your personal tax summary (PTS) or Individual income tax return (IR3) to calculate your Working for Families Tax Credit entitlement and your student loan obligation.

However, there are some other income types and adjustments we need to know about.

Income types and adjustments

We need to know about the following income types and adjustments:

Note

This information is for the tax year ending 31 March 2015 and future years. For tax years 2014 and earlier please read here.

 

Income type Working for Families Tax Credit Student loan
Salary exchanged for private use of an employer-provided motor vehicle
Yes
Yes
Vouchers and other short-term charge facilities
Yes
Yes
Non-locked in PIE income
Yes
Yes
Certain pensions and annuities
Yes
Yes
Distributions from retirement savings schemes
Yes
Yes
Distributions from superannuation schemes
Yes
Yes
Tax-exempt overseas pensions
Yes
Yes
Tax-exempt salary or wages
Yes
Yes
Other payments
Yes
No
Passive income of children
Yes
No
Income of your non-resident spouse or partner
Yes
No
Distributions from a trust that is not beneficiary income
No
Yes
Non-resident borrowers foreign-sourced income
No
Yes

Income types and adjustments that can apply to specific people or activities such as self-employment, investment, rental or you are a settlor of a trust

Income type Working for Families Tax Credit Student loan
Losses
Yes
Yes
Attributable trustee income
Yes
Yes
Attributable fringe benefits
Yes
Yes
Major shareholder in a close company
Yes
Yes
Main income equalisation scheme deposits
Yes
Yes

Income types and adjustments that can be excluded from your income if you've included them in your IR3 or PTS

Income type Working for Families Tax Credit Student loan
Retirement scheme contributions
Yes
No
Income from a retirement savings or superannuation scheme PIE
Yes
Yes
Main income equalisation scheme refunds
Yes
Yes
Depreciation recovered on sale of a building
Yes
No

Tell us about your income types and adjustments

If you receive Working for Families Tax Credits, both you and your partner must tell us about your income types and adjustments.

If you also have a student loan and your income exceeds the threshold you will need to tell us about your income types and adjustments.

  • If you receive Working for Families Tax Credit payments weekly or fortnightly
    Call us on 0800 227 773 and tell us about any other income and adjustments so we can make sure you're paid the correct amount.
  • If you receive an annual lump sum Working for Families Tax Credit payment
    Tell us your other income types and adjustments by completing an Adjust your income service form. This needs to be completed before you receive your personal tax summary or file your IR3, which is usually by 7 July. If a tax agent or accountant helps you prepare your income tax returns, make sure you tell them they will need to complete an IR215 form for you.

If you have a student loan

If you receive income that does not have automatic student loan deductions, you may want to make voluntary repayments or set aside money for an end-of-year repayment.

If you make interim payments you may need to re-estimate your income. You can do this by completing a Student loan interim payment estimate form (SL3E).

You need to include the new income types and adjustments when making the estimate of your income. This will help you avoid a student loan bill

Read more information about estimating interim payments or call us on 0800 377 774.

Related products