Individual income tax return guide 2011 - Inland Revenue Department
Individual income tax return guide 2011 - Inland Revenue Department
Individual income tax return guide 2011 - Inland Revenue Department
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www.ird.govt.nz<br />
41<br />
Question 32 Independent earner <strong>tax</strong> credit<br />
(IETC)<br />
You can calculate your IETC:<br />
<br />
on our website at “Work it out”<br />
<br />
by using the worksheets provided in this section<br />
<br />
by calling our 0800 self-service line—see page 69.<br />
IETC<br />
The IETC is a <strong>tax</strong> credit for individuals whose annual net <strong>income</strong>* is<br />
between $24,000 and $48,000. Your annual net <strong>income</strong> is shown at<br />
Box 27 “Income after expenses” in your <strong>return</strong>.<br />
If your eligible for IETC, but earn over $44,000, your annual entitlement to<br />
IETC decreases by 13 cents for every dollar earned above $44,000.<br />
For the period 1 April 2010 to 31 March <strong>2011</strong>, you’ll be entitled to IETC<br />
for any months, when:<br />
<br />
<br />
you were a New Zealand <strong>tax</strong> resident<br />
you or your partner weren’t entitled to Working for Families Tax<br />
Credits (or received an overseas equivalent)<br />
and you didn’t receive:<br />
<br />
<br />
<br />
<br />
<br />
an <strong>income</strong>-tested benefit<br />
NZ Super<br />
a veteran’s pension<br />
a foreign pension or benefit, or<br />
an overseas equivalent of any of the above.<br />
You’re a <strong>tax</strong> resident if you lived in New Zealand for more than 183 days<br />
in the last twelve months, or have an enduring relationship with New<br />
Zealand. For more information, read our <strong>guide</strong> New Zealand <strong>tax</strong> residence<br />
(IR 292) at www.ird.govt.nz<br />
To work out the months you’re entitled to this <strong>tax</strong> credit, use the total<br />
number of whole months the above criteria applied to.<br />
If you didn’t meet the above criteria for even one day of any month<br />
you won’t be entitled to IETC at all for that month, so don’t include<br />
it in your calculation.<br />
* Net <strong>income</strong> means your total <strong>income</strong> from all sources less any allowable<br />
deductions or current year losses (not including any losses brought forward).