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Income Tax Act 2007

Tax credits paid in cash - Payment of credits

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

You could also call this:

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

You can calculate the amount of tax credit instalments from 1 July 2021 to 31 March 2022 using a special formula. This formula is (prescribed amount - net family scheme income) × weekly periods ÷ 52.

In this formula, the prescribed amount is $31,096. The net family scheme income is calculated using a formula from another part of the law. It can be for you, your partner, or both of you together. Weekly periods means the number of weeks in the entitlement period where you are a full-time earner.

This calculation helps figure out how much money you might get as a tax credit during this specific time period. It’s part of something called the Minimum Family Tax Credit.

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 It might be out of date or be missing some parts.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=LMS500007.

Topics:
Money and consumer rights > Taxes
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MF 4H: Calculation of instalments: 1 April 2021 to 30 June 2021, or

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

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MF 4J: Calculation of instalments: 1 April 2024 to 30 July 2024, or

“How to work out your tax credit payments from April to July 2024”

Part M Tax credits paid in cash
Payment of credits

MF 4ICalculation of instalments: 1 July 2021 to 31 March 2022

  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 July 2021 and finishing on 31 March 2022.

  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 $31,096:
      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 4I: inserted (with effect on 1 April 2021), on , by section 6 of the Taxation (Budget 2021 and Remedial Measures) Act 2021 (2021 No 19).