Automatic write-offs

When we calculate your income tax assessment, you may end up with tax to pay.

In the situations shown below, we'll write off your tax automatically, unless:

• you file an IR3 income tax return – IR3 filers cannot get a write-off
• your income is not confirmed – we only write off tax for confirmed assessments.

Tax to pay of $50 or under

We'll write off your tax to pay if it's $50 or less.

Income-tested benefit, education grant, New Zealand Superannuation or a veteran's pension

We’ll write off your full tax bill of any size if all of the following apply.

• Your income is from an income-tested benefit, education grant, New Zealand Superannuation or a veteran’s pension.
• You have no more than $200 of other income.
• You did not use a tailored tax code during the year.
• You did not have a Working for Families entitlement at any point during the year.

When you cannot get a write-off

You cannot get a write-off if any of the following apply.

• You were the primary caregiver and were entitled to Working for Families at any time during the year.
• You used a tailored tax code during the year.
• Your tax code or tax rate was wrong.

Tax codes for individuals

Extra pay periods

We may write off your full tax bill if you only got it because you had an extra pay period during the year. For example, 27 fortnightly pays rather than 26, or 53 weekly payments instead of 52. This depends on how much the tax bill is and other factors.

If your income is no more than $180,000

You cannot get a write-off for an extra pay period in these situations.

• You were paid weekly and your tax to pay is more than $230.
• You were paid fortnightly and your tax to pay is more than $380.
• You were paid 4-weekly and your tax to pay is more than $720.

If your income is over $180,000

From the 2022 tax year onwards, you cannot get a write-off for an extra pay period in these situations.

• You were paid weekly and your tax to pay is more than $440.
• You were paid fortnightly and your tax to pay is more than $800.
• You were paid 4-weekly and your tax to pay is more than $1,550.

When we write off your tax

If you can get one of these write-offs, we’ll write off your tax to pay when we send you your income tax assessment.

If we send you a letter asking for more information about your income, and if you can get one of these write-offs, we’ll only write off your tax once you’ve confirmed your income details with us. Then we’ll send you a new assessment letter showing the tax write-off.