Work out an estimate of your entitlement to the independent earner tax credit
There is a new independent earner tax credit (IETC) available from 1 April 2009 if you meet certain criteria. The amount you'll receive will depend on your annual income.
From 1 April 2009 if your annual income is between $24,000 and $44,000 inclusive you'll receive a tax credit of $520 which works out to be $10 per week. If you're eligible but earn over $44,000 your annual entitlement to IETC decreases by 13 cents for every additional dollar earned up to $48,000.
Example
Peter meets the criteria for the IETC and has an annual income of $36,000 for the year. He'll receive a weekly credit of $10.
Sarah meets the criteria for the IETC and has an annual income of $47,000. As her income is over $44,000, she receives $2.50 each week.
Next steps
- Go to our "Work out your tax code" decision tree
- Go to our PAYE calculator (see "Work it out") to work out your after tax pay, including your IETC entitlement.
Date published: 17 Jun 2009
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