Working for Families Tax Credits 2019 – 2020
Weekly Payments (1 April 2019 – 31 March 2020)
Family Tax Credit (FTC) and In-Work Tax Credit (IWTC)
Family tax credit is paid regardless of your source of income. In-work tax credit is for families who normally work a minimum number of hours each week.
If you’re receiving a foster care allowance (board payments from Child, Youth and Family) or an orphan’s or unsupported child benefit, the amounts listed in the chart above may not apply to you.
IRD’s calculator “Estimate your Working for Families Tax Credits” in the “Work it out” section, can help you estimate your entitlement. Or you can call IRD on 0800 227 773 for help calculating your entitlement.
Minimum Family Tax Credit
If your family income is below $26,572 a year after tax (or $31,020 before tax), you may also be entitled to this payment.
Best Start credit
These figures below apply to children born on or after 01 April 2019. This is a payment for the first three years of a child’s life. The weekly entitlement rates are:
• $60 per week for one child
• $120 per week for two children
• $180 per week for three children
Payments reduce in the second and third year if your family income is above $79,000. For every dollar over $79,000 your family’s annual entitlement will be reduced by 21 cents.
• The amounts in the charts are estimates only, and are initial payment amounts which may alter if your circumstances change. If your income is above $120,500 or you have more than six children, use IRD’s calculator “Estimate your Working for Families Tax Credits” in the “Work it out” section, can help you estimate your entitlement, or call 0800 227 773.
• To see which payment types you are eligible to receive, go to www.ird.govt.nz (search keywords: understanding wfftc)
• You can’t receive Working for Families Tax Credits (WfFTC) and the independent earner tax credit (IETC) at the same time. If you currently receive the IETC by using the ME or ME SL tax code and are entitled to WfFTC, you must change your tax code with your employer at the same time as you apply for WfFTC.
Further details of these payments can be found here: Inland Revenue Department