If you're a New Zealand tax resident and you earn between $24,000 and $48,000 in a tax year, you might be able to get the independent earner tax credit (IETC).
Your type of income counts
You can get the IETC on income from:
- salary or wages
- ACC compensation payments
- paid parental leave
- other types of business income.
You cannot get the IETC if:
- you or your partner are entitled to Working for Families Tax Credits
- you receive an income-tested benefit
- you receive New Zealand Superannuation
- you receive a Veteran’s Pension
- you receive an overseas equivalent of any of the above.
IETC is worked out on whole months. If you receive any of the above payments at any time during a month, you will not be entitled to IETC for that whole month.
How much you can get
If your income (before tax) in the tax year is between:
- $24,000 and $44,000 – you get $10 per week
- $44,001 and $48,000 – your entitlement reduces by 13 cents for every dollar you earn over $44,000.
Your before-tax income does not include any losses you may have brought forward from previous years.