Here are a few tips for reducing your chances of getting an end-of-year income tax, student loan or Working for Families Tax Credits bill.
Salary and wage earners
If you are a salary and wage earner and you want to pay the right amount of tax across your total income you should use the:
- M ("main") tax code (or if your total income from all sources is between $24,000 and $48,000 you can use the ME tax code) with your largest source of income (i.e. your main job, if you have more than one), and
- a secondary tax code with all other employers.
Receiving a benefit?
If you're receiving a benefit from Work and Income and have additional employment, such as a part-time job you should:
- use a secondary tax code for the additional employment, as you will already be using the M code for your benefit.
Receiving the independent earner tax credit (IETC) and using the ME or ME SL tax code?
If are receiving the independent earner tax credit (IETC) and using the ME or ME SL tax code and you have periods where you or your partner receive Working for Families Tax Credits, or you receive a benefit, NZ Super, or veterans pension income you should:
- use the M or M SL tax code during the year, and request a tax square-up at the end of the year.
If you are self-employed and you're required to pay provisional tax (instalments of income tax during the year), you should choose the provisional tax calculation option that best suits your situation, from the:
- standard option
- estimation option, or
- ratio option (available from the 2008 - 09 income year).
Have a student loan?
Receiving Working for Families Tax Credits?
If you're receiving Working for Families Tax Credits and you or your partner have any changes to your income or your family circumstances you should:
- tell us about the changes immediately.
How do I change my tax code?
Use the IR330 Tax code declaration form to change your tax code when your job or situation changes. You need to complete a separate IR330 form for each source of income. Once you've completed and signed the form give it to your employer.
Your employer may have a supply of IR330 forms available or you can:
Date published: 03 Apr 2012
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