For individuals & families: As a parent

Common questions and answers on working for families tax credits

• qualifying for working for families tax credits
• family tax credit
• in-work tax credit
• minimum family tax credit
• parental tax credit
• working for families tax credits payments
• working for families tax credits when your circumstances change
• independent earner tax credit (IETC)
• contacting Inland Revenue

Qualifying for working for families tax credits

How do I find out if I can get working for families tax credits?

Use our online calculator Estimate your working for families tax credits (under "Work it out" ) to find out what working for families tax credits you may be entitled to. Alternatively you can call INFOexpress, our automated phone service, on 0800 257 477.

I have dependent children and am receiving a surviving spouse's pension from Work and Income. Can I claim working for families tax credits?

You may qualify for a parent's allowance, which means you cannot claim working for families tax credits. Call Work and Income or check out their website under 'Related websites'

How do I register additional children for working for families tax credits?

If you are already registered with us for working for families tax credits, you don't need to fill out another working for families tax credits registration form for your new child. All you need to do is:

• call us on 0800 227 773 to give us the child's details so we can update our records, and
• apply for an IRD number for your child (if they don't already have one), using an IR595 - IRD number application - individual form. You can get an IR595 from 'Forms and guides', or call INFOexpress on 0800 257 733 to request a copy. You need to send us your child's IRD number application form within eight weeks.

Family tax credit

I get family tax credit through Work and Income but now I've also got a part-time job. Can I claim family tax credit through you as well?

No, you can only claim family tax credit through one source. Work and Income will continue to pay it to you while you are receiving an income-tested benefit.

I've found a full-time job. Can I still keep family tax credit?

Yes, if you still qualify with your new level of income. When you or your spouse or partner gets a job, you may qualify for more family tax credit. Your case manager will discuss this with you and the action you need to take for us to continue paying your family tax credit.

I'm on NZ Super and I'm looking after two school-age children. Can I get working for families tax credits?

If you are the principal child carer you should apply to us working for families tax credits, so we can work out your entitlement.

To apply for family support complete the working for families tax credits registration form (under 'Get it done online').

In-work tax credit

How much is in-work tax credit?

In-work tax credit will pay up to $60 a week per family with one, two or three children, with an extra $15 per child for the fourth and subsequent children.

If I don't qualify for in-work tax credit, can I still receive the child tax credit?

If you don't qualify for in-work tax credit you'll still receive the child tax credit (if you received this payment before 1 April 2006). However, once you stop qualifying for the child tax credit (for example, you start receiving a benefit from Work and Income, or you start working the required hours for in-work tax credit), you won't be able to receive it again.

Can I qualify for in-worktax credit if I receive paid parental leave or parental tax credit?

Yes, if you receive paid parental leave or parental tax credit, and worked the required hours for in-work tax credit prior to taking time off for the birth of your baby, you can receive in-work tax creditfor the period that you're receiving paid parental leave or parental tax credit.

Can I qualify for in-worktax credit if I'm receiving NZ Super, veteran's pension, accident compensation, or a foster, orphan's or unsupported child's benefit?

Yes, provided you work the required hours for in-work tax credit. If you started receiving weekly ACC compensation on or after 1 January 2006 due to a personal injury caused by an accident you can still qualify for in-work tax credit if you worked the required hours prior to your accident.

Can I qualify for in-work tax credit if I'm receiving an income-tested benefit or a student allowance?

No, you don't qualify for in-work tax credit for the weeks when your family income includes an income-tested benefit or a student allowance.

Minimum family tax credit

At present I'm on accident compensation. Can I still receive minimum family tax credit?

Yes, if you normally work the required hours and meet the other requirements to qualify for minimum family tax credit, you are entitled to receive it while you are on accident compensation.

At present I'm on leave without pay. Can I still receive minimum family tax credit?

No, you do not qualify for minimum family tax credit.

Work and Income told me they will transfer my details to you because I am receiving a benefit as well as working part-time. Can I claim the minimum family tax credit?

No. As long as you receive a benefit you cannot claim the minimum family tax credit.

Parental tax credit

How do I apply for parental tax credit if I'm currently receiving working for families tax credits

To apply for parental tax credit if you're currently receiving working for families tax credits:

• call us on0800 227 773 and tell us the birth date of your child or children (which must be on or after 1 October 1999) and,

• apply for an IRD number for your child or children (if they don't already have one).

To apply for an IRD number, complete an IRD number application - children (IR594) form and include a copy of your child's birth certificate or other identification.You can get an IR594 from 'Forms and guides'.

You need to send us your child's IRD number application form within eight weeks of applying for parental tax credit.

How do I apply for parental tax credit if I'm not receiving working for families tax credits?

To apply for parental tax credit if you're not receiving working for families tax credits complete the working for families tax credits registration form (under 'Get it done online'). You also need to apply for an IRD number for your child (if they don't already have one).

To apply for an IRD number, complete an IRD number application - children (IR594) form and include a copy of your child's birth certificate or other identification. You can get an IR594 from 'Forms and guides'.

You need to send us your child's IRD number application form within eight weeks of applying for parental tax credit.

My child was born near the end of the income tax year. Do I have to apply twice for parental tax credit?

No, you only have to apply once. Payments will continue from one tax year to the next and they may vary depending on the level of your family income.

Can I register now just for parental tax credit payments, then receive other working for families tax credits entitlements at the end of the year?

No. After you send us your working for families tax credits registration (FS1) form, you will get all working for families tax credits entitlements, based on your estimate of your income. But you can arrange to receive parental tax credit as a lump sum, and the rest of your payments weekly or fortnightly.

What income is my parental tax credit based on?

It depends on the payment option you choose.

• If you are paid weekly or fortnightly, it's based on your family income for the tax year or years that you get your payments in.
• If you are paid a lump sum it's based on your family income for the tax year your baby is born.

My baby is adopted. Does parental tax credit apply from the date of birth or from the date of adoption?

Parental tax credit is paid to the principal child carer in the first eight weeks from the date of birth. If you adopt at birth, you receive parental tax credit. If you adopt after the baby's first eight weeks, the credit goes to the birth mother. If you adopt during these eight weeks, the payment is split between you and the birth mother.

My baby is in a neonatal unit. Does this still count as being in my care?

If your baby is in a neonatal unit during the first eight weeks after your baby's birth, this still counts as being in your care.

Is parental tax credit still paid if a baby dies?

If a baby dies during the first eight weeks after the baby's birth, we still pay the full amount of parental tax credit to the principal child carer.

Working for families tax credits payments

When should I receive my working for families tax credits payments from you rather than from Work and Income?

We pay working for families tax credits to families whose main income is from working, student allowance or NZ Super. If you get an income-tested benefit, you'll get your family tax credit from Work and Income. When you stop your benefit, Work and Income will transfer your details to us to ensure your family tax credit payments continue. You won't need to fill in a working for families tax credits registration form (FS1) to register.

I was expecting to receive a lump sum payment. Where is it?

You receive your lump sum payment after the end of the tax year (after 31 March), when we work out how much working for families tax credits you are entitled to receive based on your income for the tax year. This means you usually receive the payment around July of each year.

How do I avoid being paid too much working for families tax credits?

When you register for working for families tax credits, you give us details of your family circumstances and income, which we use to calculate how much working for families tax credits you are entitled to receive. To avoid getting into debt, please tell us as soon as possible if any of these details change (for example, one of your children leaves home or your income increases). If you help us to keep our records up-to-date, we can make sure we pay you the correct amount.

Call us on 0800 227 773 to make any changes.

What if I already have a bill?

If you received too much working for families tax credits during the year, you will have to pay some of it back. Please call us on 0800 227 771 so that we can arrange for you to pay it back in instalments, or to discuss other options. If you make an arrangement with us, penalties will be significantly reduced.

Working for families tax credits when your circumstances change

Since I registered for working for families tax credits, my income has changed. What should I do?

Please call us immediately on 0800 227 773 or, if you and/or your spouse or partner are in business, call us on 0800 377 774.

I'm about to come off a benefit from Work and Income. How long will it take to get working for families tax credits from you?

When you come off the benefit, your case manager will discuss with you your transfer to us. You will receive a letter from us advising you what action to take. If you get extension payments from Work and Income after your benefit has been cancelled you won't miss any payments while we are updating your details.

I've been receiving working for families tax credits and have just been declared bankrupt. What do I need to do?

We will issue you with a new IRD number and transfer your working for families tax credits information across. Payments will continue as they were prior to the bankruptcy, providing your family circumstances and income haven't changed. If there are any changes, please call us on 0800 227 773 straightaway so we can make sure y ou aren't paid too much working for families tax credits.

Independent earner tax credit (IETC)

Now that I receive working for families tax credits can I still claim the independent earner tax credit (IETC)?

No, part of the criteria to receive the IETC is that you or your partner cannot be eligible for working for families tax credits at the same time. If you have been using an ME or ME SL tax code with your employer you will need to change your tax code.

Use our decision tree to work out your correct tax code.

Contacting us

How do I contact you to ask about working for families tax credits (including family tax credit, in-work tax credit, minimum family tax credit and parental tax credit)?

Please call us on 0800 227 773 or, if you and/or your spouse or partner are in business, 0800 377 774. Our hours are 8am to 8pm weekdays, and 9am to 1pm Saturdays.

Do you have an information line that I can call?

Yes.You can call INFOexpress on 0800 257 477 to estimate your working for families tax credits and request a working for families tax credits registration (IR200) pack. INFOexpress is available from 6am to 12 midnight, 7 days a week. Please have your IRD number handy when you call.

 

 

Date published: 24 Mar 2009

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