Income tax Dates
FEB 7End-of-year income tax and Working for Families bills are due, unless you have an extension of time to file your income tax return.
FEB 28Provisional tax payments are due if you have a March balance date and use the ratio option.
MAR 31Income tax returns are due if you have an extension of time
If you have a dependent child who receives more than $500 a year from passive income, the amount over $500 is treated as income for Working for Families.
What passive income is
Passive income includes:
- amounts such as interest, dividends, a taxable Māori authority distribution (but not retirement savings scheme contributions) and replacement payments under a share-lending arrangement
- beneficiary income from a trust (but not beneficiary income that is excluded under the minor beneficiary rule, for example income from a parent’s estate left in trust)
- distributions from a listed PIE
- attributed income from a PIE that is not a superannuation fund or retirement savings scheme.
You need to include the amount over $500 for each child who receives it. If you share the care of a child or children, divide the amount over $500 equally between the principal caregivers.
Curtis is a child in the care of his mother Kim. Kim receives Working for Families for him.
Curtis is gifted $15,000 from his grandmother in April. This money is invested in term deposits.
At the end of the tax year Curtis receives a letter from the bank showing he earned $600 interest. As the total interest earned by him is over $500, Kim will need to include the amount over $500 (ie, $100) as part of the family income for Working for Families purposes.
Mary is the principal caregiver for 2 children, Josie and Max, and receives Working for Families.
Josie receives $900 interest and Max receives $200 interest.
Mary will have to add the amount over $500 ($400) of Josie's interest to her family income for Working for Families. Max's interest is under $500 so Mary does not need to tell us about it.