Income tax Dates
2021 and future tax years
If you've included an amount of a contribution from a retirement savings scheme in your individual income tax return (IR3) you can leave it out of your income for Working for Families or student loan.
You'll need to complete an adjustment so the contribution is not included.
2020 and previous tax years
The adjustment is only for Working for Families, the contribution will still be included in your income for your student loan.
Trevor has provided Te Rūnanga o Ngāi Tahu with a tax rate lower than his correct retirement scheme contribution tax (RSCT) rate so the $550 contribution made to his account is taxable income. He includes it in his IR3.
Trevor can exclude the $550 from his income for the calculation of Working for Families. He will need to let us know about this adjustment.