In-work tax credit (previously called in-work payment)
What it is
In-work tax credit (previously called in-work payment) is a payment for families who work a minimum number of hours each week, either as an employee or in self-employment.
Important
If you are coming off an income-tested benefit to start work you may be eligible for in-work tax credit. You need to confirm your working hours with us before we can start paying you that portion of your entitlement. Call us on 0800 227 773.
How much you can get
How much you can get depends on:
- your total annual family income before tax
- the number of dependent children in your care, and
- the age of these children.
The table below shows how much in-work tax credit (previously called in-work payment) you can get depending on the number of dependent children in your care.
| If you have... | then you can get... |
|---|---|
|
1, 2 or 3 children |
|
|
more than 3 children |
for each additional child:
|
Who can get it
You can get in-work tax credit (previously called in-work payment) if you work for at least:
- 30 hours each week as a couple, or
- 20 hours each week as a sole parent.
As long as you work the minimum hour requirement as an employee or in self-employment you are still eligible if your income includes:
- NZ Super
- a veteran's pension
- parental tax credit or paid parental leave if you worked the required hours before taking parental leave, or
- foster care allowance, orphan's benefit or unsupported child's benefit, for one or more children, if this is the only benefit you receive from Work and Income.
Example
Adam and Linda are a married couple with three adult children who have left their care, and three school-aged foster children. Adam receives NZ Super and Linda works full-time as a florist. They receive a foster care allowance from Work and Income, and at the same time they can apply for in-work tax credit (previously called in-work payment) from us.
Note
If you and/or your spouse or partner would normally work the required weekly hours but are injured and paid accident compensation instead, you can still get in-work tax credit (previously called in-work payment).
Who can't get it
You can't get an in-work tax credit (previously called in-work payment) if you receive:
- an income-tested benefit
- a student allowance, or
- a parent's allowance.
Example
Stu is a single dad who shares the care for his son Dan. He's unemployed and receives unemployment benefit from Work and Income. He's also got a part-time job as pizza deliverer for 10 to 15 hours a week. Stu can't apply for an in-work tax credit (previously called in-work payment) because he receives an income-tested benefit and also does not work enough hours a week.
Next steps
Check whether you can get any of the other Working for Families Tax Credits payments:
Then when you know what type of payment you might receive:
Date published: 09 Mar 2007
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