Help from Inland Revenue
If you have children in your care who are financially dependent on you, and who are 18 years or younger, you may qualify for Working for Families Tax Credits from Inland Revenue.
Working for Families Tax Credits is made up of four types of payments and you may qualify for one or more, depending on your personal situation. If you claim an Unsupported Child's Benefit, Orphan's Benefit or Foster Care Allowance, the only type of Working for Families Tax Credits you may get is in-work tax credit, but you must also work a minimum number of hours each week.
Family tax credit
Inland Revenue pays family tax credit to working families, or when you receive a student allowance or NZ Super.
You cannot claim family tax credit for any children for whom you receive an Unsupported Child’s Benefit or Orphan’s Benefit from Work and Income or Foster Care Allowance from Child, Youth and Family.
In-work tax credit
This is for families who normally work a minimum number of hours each week, as follows:
- a two-parent family where one or both parents between them normally work 30 hours a week;
- a single-parent family normally working 20 hours or more a week.
Provided the working hours condition is met, in-work tax credit is also available when parents are self-employed, receiving NZ Super or a veteran’s pension. It’s not available to families receiving an income-tested benefit or student allowance. In-work tax credit can be paid for children for whom you receive an Unsupported Child’s Benefit or Orphan’s Benefit from Work and Income, or Foster Care Allowance from Child, Youth and Family, but the amount you receive may be lower.
Minimum family tax credit
This payment ensures that the total income for families with dependent children does not fall below a certain amount each year. To get this payment, at least one parent must be working for salary or wages for a minimum number of hours each week.
Minimum family tax credit is not available to families receiving an income-tested benefit or a veteran’s pension. Receiving NZ Super, a student allowance and income from self-employment will affect payments.
You cannot claim minimum family tax credit for any dependent children for whom you receive an Unsupported Child’s Benefit or Orphan’s Benefit from Work and Income or Foster Care Allowance from Child, Youth and Family.
