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Income Tax Act 2007

Tax credits paid in cash - Payment of credits

MF 4H: Calculation of instalments: 1 April 2021 to 30 June 2021

You could also call this:

“How to calculate your minimum family tax credit instalments for April to June 2021”

You need to know how to work out your tax credit instalments from 1 April 2021 to 30 June 2021. This is for the minimum family tax credit.

To figure out your instalments, you use a special formula. The formula is: (30,576 - your net family income) × how many weeks you worked full-time ÷ 52.

Your net family income includes money you and your partner (if you have one) earned during this time. You can find out how to calculate this in section ME 3.

The number of weeks you worked full-time is important for this calculation. Make sure you count these correctly.

This method helps work out how much tax credit you should get each week during this specific time period.

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 It might be out of date or be missing some parts.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=LMS499983.

Topics:
Money and consumer rights > Taxes
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MF 4G: Calculation of instalments: 1 July 2018 to 31 March 2019, or

“How tax credit instalments were calculated from July 2018 to March 2019 (now outdated)”

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MF 4I: Calculation of instalments: 1 July 2021 to 31 March 2022, or

“How to work out your Minimum Family Tax Credit payments from July 2021 to March 2022”

Part M Tax credits paid in cash
Payment of credits

MF 4HCalculation of instalments: 1 April 2021 to 30 June 2021

  1. This section applies for calculating the amount of an instalment by way of tax credit under section ME 1 (Minimum family tax credit) for the period starting on 1 April 2021 and finishing on 30 June 2021.

  2. The instalments for the tax credit under section ME 1 are calculated using the formula—

    (prescribed amount − net family scheme income) × weekly periods ÷ 52.

    Where:

    • In the formula,—

    • prescribed amount is $30,576:
      1. net family scheme income is the net family scheme income, calculated using the formula in section ME 3 (Meaning of net family scheme income), for a relationship period containing the entitlement period, of—
        1. the person; or
          1. their spouse, civil union partner, or de facto partner; or
            1. the person and their spouse, civil union partner, or de facto partner:
            2. weekly periods is the number of periods of 1 week in the entitlement period for which the person is a full-time earner.

              Notes
              • Section MF 4H: inserted (with effect on 1 April 2021), on , by section 6 of the Taxation (Budget 2021 and Remedial Measures) Act 2021 (2021 No 19).