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Child support Turuki Tamariki

How to estimate your taxable income

You can estimate your income by calling us on 0800 221 221, through your myIR Secure Online Services account, or by completing the Estimate of income for child support assessment (IR104) form for the relevant child support year.

 

Note

Your estimate must be received before the end of the child support year that you're estimating for.

Find out how to estimate if you're living overseas

What information you need to give us

If you estimate before the start of the child support year or during April of the child support year you need to tell us what you expect to earn from 1 April to 31 March (ie, for the whole 12 months).

If you're estimating any time from 1 May you need to tell us:

  • your year-to-date income (this is any actual income you've earned from 1 April to the end of the month before the month you're completing your estimate in), and
  • how much you expect to earn from the start of the month in which you estimated until the end of the child support year (31 March) - the election period.

We may ask you to provide proof to support your estimation, eg, payslips, bank records, or if you're self-employed, a letter from your accountant or tax agent if you have one. You need to be able to supply this if we ask for it.

Example

Chris changes jobs in October and her income reduces. She is assessed using an original adjusted taxable income of $50,000 and decides to estimate. She needs to earn $42,500 or less for the year to be able to estimate.

Chris tells us that her year-to-date income for 1 April to 30 September is $20,000 and she expects to earn a further $17,000 from 1 October to 31 March.

$20,000 + $17,000 = $37,000. As this is below $42,500 she may be able to estimate.

Chris's annualised estimated taxable income for 1 October to 31 March (182 days, the election period), also needs to be less than the original adjusted taxable income used in her assessment before she can estimate.

The annualisation formula

a ÷ b x 365 = annualised estimated taxable income

a is the estimated taxable income for the election period
b is the number of days in the election period
365 is the number of days in a year

$17,000 ÷ 182 x 365 = $34,093.41

Chris' annualised estimated taxable income of $34,093.41 is less than her original adjusted taxable income of $50,000 so she can estimate.


 

Note

If you decide to estimate your income you are responsible for getting it right. Please contact us if your income changes after you've estimated or you've made a mistake in your estimate.

What happens when you estimate

If we accept your estimate, your child support will be reassessed for the period you've estimated ie, the election period, using your annualised estimated taxable income. The reassessment will apply from:

  • the 1st day of the month in which the election period begins, or
  • 1 April if the estimate will apply to the whole child support year.
Example

Chris tells us that her year-to-date income for 1 April to 30 September is $35,000. She estimates from 1 October to 31 March (182 days, the election period) she will earn $26,500.

We annualise her estimated taxable income as $26,500 ÷ 182 x 365 = $53,145.60.

We'll use an income of $53,145.60 in Chris's assessment from 1 October to 31 March.

We'll send you and any other parent or carer a notice showing the amended child support assessment.

Note

All estimations end on 31 March unless you cancel it earlier. If the formula assessment ends, this is the date the estimation ends.