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What are Working for Families Tax Credits?

What they are

Working for Families Tax Credits are an entitlement for families with dependent children aged 18 or younger. It includes four different types of payments (tax credits).

Important

The types of payment and the amounts you can get depend on:

  • how many dependent children you care for
  • your total family income
  • where your family income comes from
  • the age of the children in your care, and
  • any children you share care for.

Mp4 video | 2:33 mins

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Who is eligible

All payments are made to an eligible parent to help with the family's day to day living costs.

Who pays it

Work and Income generally pays your family tax credit if you receive an income-tested benefit as your main income.

Inland Revenue pays Working for Families Tax Credits if your main income is from working, a student allowance, NZ Super or ACC.

If you receive an income-tested benefit you can choose to receive your family tax credit from either Work and Income or Inland Revenue.

Important

You can only receive Working for Families Tax Credits from either Work and Income or Inland Revenue.

What payments are available

The table below lists the four types of Working for Families Tax Credits payments and describes them briefly. You can also use the links to find out more about each type.

Important

You may be able to get more than one type of payment.


 

Payment type Description Find out more...
Family tax credit Paid to families with dependent children 18 or younger. About family tax credit
In-work tax credit

Paid to families with dependent children18 or younger who work the required hours each week.


Note

To get this payment, couples must work at least 30 hours a week between them, and single parents must work at least 20 hours a week.

About in-work tax credit
Minimum family tax credit

Paid to ensure that the annual income (after tax) of a family with dependent children18or younger does not fall below $22,776.


Note

To get this payment, couples must work at least 30 hours a week between them, and single parents must work at least 20 hours a week.

About minimum family tax credit
Parental tax credit

Paid to families with a newborn baby for the first 56 days (eight weeks) after the baby is born.


Note

You can't get this payment if you're on paid parental leave or receiving an income-tested benefit.

About parental tax credit

Examples

Example 1

Richard and his wife Susan work full-time and have a total annual family income of $58,000 before tax. They have two school-aged children. They would be entitled to get a family tax credit and an in-work tax credit.


 

Example 2

Melinda is a single mother. She works part-time for 20 hours a week and has a total annual family income that is under $22,724 after tax. She is pregnant with her second child. Melinda would be entitled to get a family tax credit, an in-work tax credit, and a minimum family tax credit. She may also be entitled to get a parental tax credit once her baby is born.

What it is not

The table below lists other entitlements besides Working for Families Tax Credits, and provides links to more information.

Other entitlements Description Find out more...
Paid parental leave A government-funded entitlement for eligible parents when they take parental leave from their job to care for their newborn or adopted child. In the As a parent section
Child support

Money paid by parents who are not living with their children to help financially support their children when:

  • a couple who have children split up, or
  • two people have children and aren't living together.
In the Child support section

Find out more

Next steps

 


Date published: 01 Aug 2014

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