In-work tax credit (IWTC) is an entitlement for families who are in paid work. You need to tell us how many weeks you qualify for the in-work tax credit.
To qualify for in-work tax credit you must be in paid work for at least:
You must receive one of the following types of qualifying income from that work:
You can't get in-work tax credit if you receive:
You must "normally" work the required hours. If you work less than the required hours for a short period of time, you may still receive in-work tax credit.
If you're not sure your situation qualifies as "normally" working the required hours, please contact us on 0800 227 773.
If you work the required hours, and receive qualifying income, you are still eligible if your income includes the following:
1The date of incapacity (being the inability to physically work) can be later than the date of the injury. If you suffered an injury before 1 January 2006, but did not become incapacitated until on or after 1 January 2006, you may be eligible for IWTC. If you consider you have previously been given incorrect information or advice regarding your eligibility for IWTC, please contact Inland Revenue.
Adam and Linda have three school-aged foster children in their care. Adam receives NZ Superannuation and Linda works 35 hours per week. They receive a foster care allowance from Work and Income, so they can only receive in-work tax credit from us.
If you occasionally work the required hours, you’ll need to let us know which weeks you qualify for in-work tax credit. You can:
The type of self-employed income you receive may affect whether you can receive in-work tax credit. Please check with us on 0800 227 773 if you have any of the following:
Stu is a single dad who shares the care for his son Dan. He's unemployed and receives sole parent support from Work and Income. He's also got a part-time job as a pizza deliverer for 22 hours a week. Stu doesn’t qualify for in-work tax credit because he receives an income-tested benefit .
Dale is a single parent who works as a teacher aide for 22 hours a week. She's contracted to work for the school from February to December although she doesn’t work during the term holidays. She's entitled to receive in-work tax credit from February until December because she normally works the required hours and receives income during that period. Dale can’t receive in-work tax credit during the summer holidays because she’s not contracted to work for that period.
Diane is a single parent, who works 25 hours a week for wages. One week she is sick, and can only work 15 hours. Because she normally works 25 hours, she's still entitled to in-work tax credit for the week she is sick.
Rob worked 40 hours a week as a salesperson. He got a new job as a store manager, also working 40 hours a week. He resigned from his sales job, but had two weeks after he finished before his new job started. He couldn’t receive in-work tax credit for the two weeks while he was between jobs, because he wasn’t working at all.
Chris is a single parent who works 15 hours a week as a receptionist. Occasionally she works for six hours on a Saturday for another employer selling takeaways.Chris only qualifies for in-work tax credit for the weeks she works 21 hours.
The amount of in-work tax credit depends on:
If you have 1, 2 or 3 children the maximum you can receive is:
If you have more than 3 children, for each additional child a further:
If you're coming off a benefit to start work you may be eligible for in-work tax credit. You need to confirm your working hours with Work and Income as you cancel your benefit or with us after your benefit has cancelled.
To make sure you receive all your entitlements, see Coming off a benefit.
Our online calculator helps you estimate your Working for Families entitlement:
Enter the required information and the calculator will estimate your entitlement. The help text will guide you as you work through the calculator, which will take about 10 minutes to complete.
The calculator will not provide an accurate result if:
Check whether you can get any of the other Working for Families Tax Credits payments: