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|List of income tax words and terms|
|Main source of income||Tax code|
|Net income||Tax credits|
|New Zealand tax resident||Tax year|
|PAYE||Working for Families Tax Credits|
|Salary or wages|
For tax purposes, income-tested benefit means one of the following:
The highest source of income you receive, which includes income such as salary, wages, a benefit, weekly accident compensation payments, New Zealand Superannuation, or a student allowance. If you receive an income-tested benefit (other than New Zealand Superannuation) this will be treated as your highest source of income.
Net income means your total income from all sources less any allowable deductions or current year losses (but not including any losses brought forward).
If your only income is from your salary or wages (and you don't have any allowable expenses, for example income protection insurance) your net income will be your annual salary or wages before tax.
The tax laws state who is a New Zealand resident for tax purposes.
PAYE is an amount your employer deducts from your salary and wages. It includes:
A payment made to a person in connection with their employment.
A person who works for themselves. This person controls, manages and owns the business.
A code you give to your employer to help them determine the correct amount of tax and other payments to deduct from your salary or wages.
An amount you can claim that reduces the tax you would otherwise have to pay on your income.
The year that starts on 1 April and ends on 31 March (although some people may have arranged to use different dates).
Working for Families Tax Credits are an entitlement for families with dependent children aged 18 or younger.