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Income Tax Act 2007

Tax credits paid in cash - Terminating provisions

MZ 2: Calculation of child tax credit

You could also call this:

“How to work out your child tax credit”

If you meet the requirements in section MZ 1, you can get a child tax credit. To work out how much you get, you use a special calculation.

The calculation looks like this: $780 times the number of dependent children times the number of days in the entitlement period, divided by 365.

Dependent children are the kids you’re the main caregiver for during the entitlement period.

The entitlement period is the number of days when you and your partner (if you have one) don’t get any social assistance payments and don’t have a suspended entitlement to a main benefit.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1518624.

Topics:
Money and consumer rights > Taxes
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MZ 1: Entitlement to child tax credit, or

“Eligibility for child tax credit for certain parents who can't receive in-work tax credit”

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MZ 3: Exclusions from determination of family scheme income, or

“Money not counted when calculating family tax credits”

Part M Tax credits paid in cash
Terminating provisions

MZ 2Calculation of child tax credit

  1. A person who meets the requirements of section MZ 1 is entitled to a child tax credit calculated using the formula in subsection (2).

  2. The formula is—

    $780 × dependent children × days in entitlement period ÷ 365.

    Where:

    • In the formula,—

    • dependent children is the number of dependent children for whom the person is a principal caregiver during the entitlement period:
      1. days in entitlement period is the number of days in the entitlement period for which the person and their spouse, civil union partner, or de facto partner do not receive a social assistance payment and do not have a suspended entitlement to a main benefit.

        Compare
        Notes
        • Section MZ 2(3)(b): amended, on , by section 141 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
        • Section MZ 2 list of defined terms income-tested benefit: repealed, on , by section 141 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
        • Section MZ 2 list of defined terms main benefit: inserted, on , by section 141 of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).