LC 13Tax credits for independent earners

1. This section applies for a natural person, for a period (the credit period) in a tax year when the person—

2. is not receiving a main benefit; and
3. is not receiving a veteran's pension; and
4. is not receiving New Zealand superannuation; and
5. is not entitled to or is not receiving a WFF tax credit; and
6. is not the spouse, civil union partner, or de facto partner of a person who is entitled to and is receiving a WFF tax credit; and
7. is not receiving an amount that is—
   1. granted outside New Zealand; and
   2. in the nature of, and paid for similar purposes as, a benefit, pension, superannuation payment, or tax credit described in paragraphs (a) to (d); and
8. is not the spouse, civil union partner, or de facto partner of a person who receives an amount that is—
   1. granted outside New Zealand; and
   2. in the nature of, and paid for similar purposes as, a tax credit described in paragraph (d); and
9. is resident in New Zealand.

10. For the credit period, the person has a tax credit equal to the positive amount calculated using the formula—

    $(person\text{'}s\; credit\; -\; full\; year\; abatement)\; \times \; credit\; period\; months\; ÷\; 12.$

    Where:

11. The items in the formula are defined in subsections (4) to (6).

12. Person's credit is, if the person's net income for the tax year is equal to or more than $24,000, $520. Otherwise it is zero.

13. Full year abatement is, if the person's net income is greater than $66,000 for the tax year, 13 cents for each complete dollar of the excess.

14. Credit period months is the number of whole months in the credit period.