Working for Families Tax Credits
Working for Families Tax Credits are entitlements for families with dependent children 18 years or younger. There are four types of payment and you may qualify for one or more, depending on your personal situation.
Family Tax Credit
This provides ongoing financial support for families. You can get it while on a benefit or while you’re working (Inland Revenue pays it if you work).
The other payments have different rules and you can only get them if you’re not on a benefit.
In-Work Tax Credit
This is a payment for working families with dependent children. To get this payment, at least one parent must be working for salary or wages, and normally work for a minimum number of hours each week.
You can get in-work tax credit if you’re self employed. It’s not available to families receiving an income-tested benefit or student allowance.
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.
Parental Tax Credit
This payment helps with the costs of a new baby for eight weeks after your baby is born. The amount you can get depends on your family income and if you received weekly accident compensation payments, an income-tested benefit, a Student Allowance or New Zealand Superannuation during the first eight weeks after your child was born.
