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Income Tax Act 2007

Tax credits paid in cash - Entitlements under family scheme

MC 7: When spouse or partner entitled under family scheme

You could also call this:

“When you and your partner qualify for family tax credits for different children”

If you have a spouse, civil union partner, or de facto partner for the whole time you’re entitled to family scheme tax credits, this rule applies to you. It’s for when both you and your partner meet the criteria for dependent children, but not all the children are the same for both of you.

In this case, the law treats it as if one of you meets the criteria for all the children, and the other doesn’t meet the criteria for any of them. For most Working for Families tax credits, the Commissioner of Inland Revenue will decide which one of you meets the criteria. However, for the in-work tax credit, this rule doesn’t apply.

Remember, the criteria for these tax credits are explained in sections MC 3 to MC 5. These sections will tell you more about who can get these tax credits and what you need to do to qualify.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518486.

Topics:
Money and consumer rights > Taxes
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MC 6: When person does not qualify, or

“When you might not qualify for tax credits due to other benefits”

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MC 8: Continuing requirements, or

“Ongoing rules for family scheme payments and tax credits”

Part M Tax credits paid in cash
Entitlements under family scheme

MC 7When spouse or partner entitled under family scheme

  1. This section applies when a person has a spouse, civil union partner, or de facto partner throughout an entitlement period, and during the period—

  2. the person meets the criteria in sections MC 3 to MC 5 in relation to 1 or more dependent children; and
    1. the spouse or partner meets the criteria in sections MC 3 to MC 5 in relation to 1 or more dependent children; and
      1. the dependent child, or at least 1 of the dependent children, referred to in paragraph (b) is not a dependent child referred to in paragraph (a).

        1. In the circumstances described in subsection (1),—

        2. this section applies as if—
          1. the person or their spouse or partner meets the qualifying criteria in relation to all those children; and
            1. the other person does not meet the qualifying criteria in relation to any of the children; and
            2. for all WFF tax credits other than the in-work tax credit, the Commissioner must determine which of the persons referred to in paragraph (a) meets the qualifying criteria.

              Compare
              Notes
              • Section MC 7(2)(b): amended, on , by section 461 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).