Download - Inland Revenue Department

FamiliesNgā WhanāuAD 70 | June 2011Earthquake – if your income is affectedAfter an earthquake you’ll have a lot on your mind. Your income may be affected because youor your employer are unable to operate the business. Your family situation may have changedand you could now qualify for Working for Families Tax Credits or you may need to update yourincome estimate.Redundancy tax creditIf you receive a redundancy payment before 30 September2011 you may be able to claim a redundancy tax credit.Redundancy payments received on or after 1 October2011 aren’t entitled to this credit.You’ll need to complete a Redundancy tax credit (IR 524)form. The redundancy tax credit is paid at the rate of6 cents in the dollar to a maximum of $3,600.If you have been made redundant or are strugglingfinancially contact Work and Income on 0800 559 009 orvisit www.workandincome.govt.nz There is a range offinancial assistance you may be eligible to receive.Working for Families Tax Credits(WfFTC)This is a tax credit that’s paid weekly or fortnightly tofamilies based on your estimated annual family income andthe number of children in your family. It’s also available asa lump sum at the end of the tax year. You can qualify ifyou’re on salary or wages or are self-employed.Your entitlement may change if your family income hasbeen affected by an earthquake. You can update yourestimated family income at www.ird.govt.nz “Secureonline services” or call us on 0800 227 773.There are four payment types and you may qualify forone or more, depending on your personal situation.Family tax creditThis is paid to families with dependent children 18 oryounger.In-work tax credit (IWTC)This is paid to families who work the required number ofhours each week and have dependent children who are 18or younger.Minimum family tax credit (MFTC)This is paid to ensure that the annual income (after tax)of a family with dependent children 18 or younger doesn’tfall below $20,800. The Minimum Family Tax Credit ispayable to families working for salary or wages.To get either the IWTC or MFTC payment, couples mustnormally work at least 30 hours a week between them,and single parents must work at least 20 hours a week.If, because of an earthquake, you don’t work these hours,you may still receive the in-work tax credit.If you’re not sure if your circumstances qualify you as“normally” working the required hours, please contact uson 0800 227 773.Parental tax creditThis is paid to families with a newborn baby for the first56 days (eight weeks) after the baby is born.You can’t get this payment if you’re on paid parental leaveor receiving an income-tested benefit.Payments that you receive as a result of being adverselyaffected by a Commissioner declared emergency eventsuch as the Christchurch earthquake may not need to beincluded as income for Working for Families Tax Credits.For more information go to www.ird.govt.nz (keywords:adjustments family income).Child supportIf you have trouble making child support payments pleasecall us on 0800 221 221.EstimationsIf your income has changed because of the earthquake,you may need to re-estimate the amount of child supportyou pay. You can estimate your income if you expect toearn at least 15% less than the income we’ve used towork out your child support.For example, if we’ve worked out your child support on$30,000, your estimate of income needs to be no morethan $25,500.To estimate, you can write to us or complete the Estimateof income for child support assessment (IR 104) form.The information in this document was current at the time of publication.Please refer to our website for the most up-to-date information.www.ird.govt.nz/childsupport 0800 221 221www.ird.govt.nz/wff-tax-credits/ 0800 227 773

You need to estimate how much you expect to earn forthe whole child support year and evidence to support yourestimation, for example, payslips or, if self-employed, aletter from your accountant.Please call us on 0800 221 221 if you want moreinformation.Administrative reviewsIf you’re unable to estimate but believe you have specialcircumstances, you may be able to apply for a review.You have to show you have grounds for a review.For more information about child support reviews, go towww.ird.govt.nz/childsupport/paying-parents or call us on0800 371 333.KiwiSaverYou may want to consider some options if you haveKiwiSaver savings.Contributions holidayIf you’re an employee, once you’ve been a member for12 months you can take a break from saving—this iscalled a contributions holiday. There is also the optionof applying for an early contributions holiday if you havebeen a KiwiSaver member for less than 12 months butare experiencing financial hardship.To apply for a contributions holiday or an earlycontributions holiday you can:• apply online if you’re registered for My KiwiSaver, or• print off and complete a Contributions holiday request(KS 6) and post it to Inland Revenue (address detailsare on the form), or• call us on 0800 549 472 (0800 KIWISAVER), or04 978 0800 if calling from a cellphone.The contributions holiday can last from three months tofive years.You’ll need to contact your KiwiSaver provider directly.You may have to:• show that reasonable alternative sources of fundinghave been explored• complete a statutory declaration about your assets andliabilities• provide other documents or information to supportyour application.Community RelationshipsIf you’d like someone to speak to your communityorganisation, school, workplace, government department,youth or specialist group about WfFTC, child support,KiwiSaver, student loans or paid parental leave call0800 473 566 and ask to speak to the CommunityRelationships representative in your region.Donations to the CanterburyEarthquake AppealYou can claim a tax credit for donations of $5 or moremade to approved donee organisations such as theNew Zealand Red Cross and the Salvation Army.To claim the credit you’ll need to keep your donationreceipts and complete a Tax credit claim form (IR 526)after April 2011. Call us on 0800 257 773 to order theIR 526 or download it from www.ird.govt.nz “Forms andguides”.Significant financial hardshipIf you can provide evidence that you’re sufferingsignificant financial hardship, you may be able towithdraw some of your KiwiSaver savings.www.ird.govt.nzGo to our website for information, services and tools.• Secure online services – login to check your account information, file an employerschedule, confirm personal tax summaries and update your family details and income.• Get it done online – complete and send us forms and returns, make payments, makean appointment to see us and give us feedback.• Work it out – use our calculators, worksheets and tools to help you manage your taxbusiness like checking your tax code, or your filing and payment dates.• Forms and guides – download our guides, and print forms to post to us.• Contact us – for full details of phone numbers, addresses and contact options.You can also subscribe to our newsletters, go to www.ird.govt.nz/subscribeVISIT US ON FACEBOOKOR TWITTERFor more information and tofind out where we are in yourcommunity, go towww.facebook.com/ircanterburyrecoveryor follow us on Twittertwitter.com/NZInlandRevenueThe information in this document was current at the time of publication. Please refer to our website for the most up-to-date information.www.ird.govt.nz