From 1 April 2012
The tax credit for income under $9,880 has been removed from 1 April 2012. So the last time you will be able to claim this tax credit is for the 2012 tax year (1 April 2011 to 31 March 2012).
If you have been using the ML or ML SL tax codes you will need to change this before 1 April 2013.
Prior to 1 April 2012
If your taxable income was under $9,880 then you could claim this tax credit for every week that you were in paid work for 20 hours or more:
- earning salary or wages
- as a shareholder-employee
- as a working partner in a partnership
- as a working owner in a look-through company, or
- in self-employment.
If you would have done 20 or more hours of paid work a week but instead received a community wage for sickness or accident compensation payments, you can still claim this tax credit.
If you were eligible for this tax credit, you may get a tax refund for tax years 2012 (1 April 2011 to 31 March 2012) and prior. These tax credits could have been claimed during the year when you were paid your salary or wage, or by confirming a personal tax summary (PTS) at the end of the year. Depending on your situation you may have needed to file an IR3 individual income tax return.
You can't claim this tax credit if you or your partner were entitled to working for families tax credits during the year.
For the tax years 2012 and prior if you left school during the year you could have claimed either the tax credit for income under $9,880 or the tax credit for children, whichever is larger. You can't claim both.
How to claim this tax credit and get a refund (for 2012 and prior years)
If you were eligible for a tax credit and didn't receive it during the year by using the appropriate tax code, you'll either need to file an IR3 return or receive a PTS to find out if you'll get a refund. See "Find out more" below.
If you file an IR3 return
Your IR3 return for 2012 and prior years includes a tax credit section which will help you to calculate your tax credit. See "Find out more" below for information about who needs to file an IR3 return.
Personal tax summary (PTS)
If you did'nt need to file an IR3 return, use our Personal tax summary calculator under "Work it out" to find out if you'll get a refund and how much it will be.
If you were eligible for a refund, you can Request a personal tax summary under "Get it done online" to make sure your tax credits are added to your PTS. If you've already received a PTS call us on 0800 227 774 and ask for your tax credits to be added onto your PTS. If you were eligible for both the tax credit for children and the tax credit for income under $9,880, we'll calculate which one is better for your situation and add it to your PTS.
Find out more
- Donations, childcare and housekeeper tax credits
- Independent earner tax credit (IETC)
- Payroll giving tax credits
- Tax credit for children
Date published: 24 Sep 2012