Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Tax credits paid in cash - Abating WFF tax credits

MD 6: Second requirement: principal care

You could also call this:

“You must be the main caregiver for a financially dependent child”

To get an in-work tax credit, you need to be the main caregiver for a child who depends on you for money. This is the second requirement you must meet.

The law says a child is financially dependent on you in two situations. First, if you get payments for the child under section 363 of the Oranga Tamariki Act 1989. Second, if you get an orphan’s benefit or an unsupported child’s benefit for the child.

This rule is more important than the continuing requirements in section MC 8. It overrides those requirements.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518526.

Topics:
Money and consumer rights > Taxes
Family and relationships > Children and parenting
Previous

MD 5: First requirement: person’s age, or

“You must be at least 16 years old to qualify for the in-work tax credit”

Next

MD 7: Third requirement: residence, or

“You must meet specific residency requirements to qualify for the in-work tax credit”

Part M Tax credits paid in cash
Abating WFF tax credits

MD 6Second requirement: principal care

  1. The second requirement for an entitlement to an in-work tax credit is that the person referred to in section MD 4 is the principal caregiver for a child who is financially dependent on them.

  2. A child for whom payments are made under section 363 of the Oranga Tamariki Act 1989, or a child for whom an orphan’s benefit or an unsupported child’s benefit is paid, is treated as financially dependent on the person.

  3. Subsection (2) overrides section MC 8 (Continuing requirements).

Compare
Notes
  • Section MD 6(1): amended, on , by section 471(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
  • Section MD 6(2): amended (with effect on 20 April 2020), on , by section 12(1) of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
  • Section MD 6(2): amended, on , by section 459 of the Social Security Act 2018 (2018 No 32).
  • Section MD 6(2): amended, on , by section 149 of the Children, Young Persons, and Their Families (Oranga Tamariki) Legislation Act 2017 (2017 No 31).
  • Section MD 6(3) heading: added (with effect on 1 April 2008), on , by section 358(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section MD 6(3): added (with effect on 1 April 2008), on , by section 358(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section MD 6 list of defined terms in-work payment: repealed, on , by section 471(2)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
  • Section MD 6 list of defined terms in-work tax credit: inserted, on , by section 471(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
  • Section MD 6 list of defined terms orphan’s benefit: inserted (with effect on 20 April 2020), on , by section 12(2) of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).
  • Section MD 6 list of defined terms unsupported child’s benefit: inserted (with effect on 20 April 2020), on , by section 12(2) of the COVID-19 Response (Taxation and Other Regulatory Urgent Measures) Act 2020 (2020 No 10).