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Income Tax Act 2007

Tax credits paid in cash - Entitlements under family scheme

MC 8: Continuing requirements

You could also call this:

“Ongoing rules for family scheme payments and tax credits”

If you want to get money and tax credits from the family scheme, you need to meet certain rules. These rules apply for the whole time you’re getting the benefits.

You must meet the qualifying rules set out in sections MC 3 to MC 7 every day. Your relationship status can’t change during this time. This means no one can become or stop being your spouse, civil union partner, or de facto partner.

You can’t start or stop being the main caregiver of a dependent child, except on the first or last day of the period. A child you’re caring for can’t stop being a dependent child, except on the first or last day.

The makeup of your WFF tax credit can’t change, except on the first or last day. You also can’t start or stop getting protected family tax credit, except on the first or last day.

There’s a special rule for the in-work tax credit. Section MD 6(2) about being the principal caregiver is more important than these rules for that credit.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518488.

Topics:
Money and consumer rights > Taxes
Family and relationships > Children and parenting
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MC 7: When spouse or partner entitled under family scheme, or

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

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MC 9: Credits for person aged 18, or

“Tax credits available for dependent 18-year-olds in education”

Part M Tax credits paid in cash
Entitlements under family scheme

MC 8Continuing requirements

  1. To receive entitlements and tax credits under the family scheme, a person who meets the qualifying criteria set out in sections MC 3 to MC 7 must also meet the following requirements throughout the entitlement period:

  2. the person meets the qualifying criteria on each day of the period; and
    1. another person does not on any day start or stop being a spouse, civil union partner, or de facto partner of the person; and
      1. the person does not start or stop being the principal caregiver of a dependent child other than on the first or, as applicable, the last day; and
        1. a child for whom the person is the principal caregiver does not stop being a dependent child other than on the first or, as applicable, the last day; and
          1. the composition of a WFF tax credit does not change, other than on the first, or as applicable, the last day; and
            1. the person does not start or stop being a person receiving protected family tax credit, other than on the first, or as applicable, the last day.

              1. Section MD 6(2) (Second requirement: principal care) overrides this section in relation to the in-work tax credit.

              Compare
              • 2004 No 35 s OB 1 eligible period
              Notes
              • Section MC 8(1) heading: inserted (with effect on 1 April 2008), on , by section 356(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section MC 8(e): amended, on , by section 462(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
              • Section MC 8(f): amended, on , by section 462(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
              • Section MC 8(2) heading: added (with effect on 1 April 2008), on , by section 356(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section MC 8(2): added (with effect on 1 April 2008), on , by section 356(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section MC 8 list of defined terms family assistance credit: repealed, on , by section 462(3)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
              • Section MC 8 list of defined terms in-work tax credit: inserted (with effect on 1 April 2008), on , by section 356(3) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
              • Section MC 8 list of defined terms protected family support: repealed, on , by section 462(3)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
              • Section MC 8 list of defined terms protected family tax credit: inserted, on , by section 462(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
              • Section MC 8 list of defined terms WFF tax credit: inserted, on , by section 462(3)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).