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Child Benefit / Working Tax credit equivalent

Child Benefit / Working Tax credit equivalent

Old Oct 29th 2009, 4:44 pm
  #1  
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Default Child Benefit / Working Tax credit equivalent

I have been trying to find this out but not 100% sure of the answer so hoping some people already in NZ can help.

My husband, myself and our ten year old daughter have permanent residency visas. (still in n. ireland - hope to move feb time). My husband will be working first and once we are settled I will look also.

Will we be entitled to child benefit / working tax credit in NZ? And how much is it.

Thanks

Louisa
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Old Oct 29th 2009, 6:04 pm
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Default Re: Child Benefit / Working Tax credit equivalent

Here you go

http://www.ird.govt.nz/wff-tax-credits/

The maximum you would be getting for your circumstances would be $146 per week which would be decreasing according to what your income level is.

Thats based on couple one child (same as us).

http://www.ird.govt.nz/resources/5/5...ir271-2010.pdf

Is the calculation sheet, word to the wise is overestimate your income because at the end of the year they will do a catch up either paying the extra or sending you a bill for over payment.

Last edited by Madmaxdeux; Oct 29th 2009 at 6:07 pm.
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Old Oct 29th 2009, 8:52 pm
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Default Re: Child Benefit / Working Tax credit equivalent

Originally Posted by loui5a View Post
I have been trying to find this out but not 100% sure of the answer so hoping some people already in NZ can help.

My husband, myself and our ten year old daughter have permanent residency visas. (still in n. ireland - hope to move feb time). My husband will be working first and once we are settled I will look also.

Will we be entitled to child benefit / working tax credit in NZ? And how much is it.

Thanks

Louisa
May be wrong but I didn't think you were entitled to any benefits for the first 2 years ....
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Old Oct 29th 2009, 9:57 pm
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Default Re: Child Benefit / Working Tax credit equivalent

Originally Posted by nelsonpom View Post
May be wrong but I didn't think you were entitled to any benefits for the first 2 years ....
I thought it was 6 months BUT apparently you get it from day one. However probably best to check with the IRD.
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Old Oct 29th 2009, 11:15 pm
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Default Re: Child Benefit / Working Tax credit equivalent

Originally Posted by nelsonpom View Post
May be wrong but I didn't think you were entitled to any benefits for the first 2 years ....
Think that is true if you lose your job...no unemployment benefit for first 2 years even with PR but willing to be corrected. The tax relief type benefits are probably only given if you have PR and not given if you just have a work visa maybe?
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Old Oct 29th 2009, 11:26 pm
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Default Re: Child Benefit / Working Tax credit equivalent

Originally Posted by Genesis View Post
I thought it was 6 months BUT apparently you get it from day one. However probably best to check with the IRD.
At the risk of repeating myself, you can't claim them and the IRD 4 year amnesty on *certain* overseas income (such as rental income, share dividend income, etc) for newly arrived and certain returning Kiwis (who have been away a long time).

If you ever claim tax credits you are not allowed to take the 4 years.
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Old Oct 29th 2009, 11:29 pm
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Default Re: Child Benefit / Working Tax credit equivalent

Originally Posted by lardyl View Post
At the risk of repeating myself, you can't claim them and the IRD 4 year amnesty on *certain* overseas income (such as rental income, share dividend income, etc) for newly arrived and certain returning Kiwis (who have been away a long time).

If you ever claim tax credits you are not allowed to take the 4 years.
Cheers Lardyl - we are in the 4 year amnesty period.
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Old Oct 29th 2009, 11:36 pm
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Default Re: Child Benefit / Working Tax credit equivalent

Originally Posted by luvwelly View Post
Cheers Lardyl - we are in the 4 year amnesty period.
thank you - its my most useful posting tidbit - always seem to get a thank you for it or karma, so "thank you".....
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Old Oct 30th 2009, 2:38 am
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Default Re: Child Benefit / Working Tax credit equivalent

Here is what the NZ IRD say about the eligibility.

WORKING FOR FAMILIES TAX CREDITS.

You must meet all four of the eligibility criteria to be entitled to Working for Families Tax Credits. The table below explains each of the criteria in detail.

Dependent child
You can receive Working for Families Tax Credits payments for each "dependent child". Dependent children are all children in your care who are:
  • 18 years or younger, and
  • financially dependent. This means children you support financially who don't:
    • work more than 30 hours a week, or
    • receive a student allowance, a benefit or other government assistance.
Children aged 18 years of age must be attending either secondary school or tertiary education and not financially independent. You will receive payments up to the end of the calendar year (31 December) in which the child turns 18, or the date the child becomes financially independent, whichever is the earlier.

Important

All children for whom you are applying for Working for Families Tax Credits must have an IRD number. If any of your children do not have an IRD number, you must apply for one. Simply download an IR595 - IRD number application - individual form, or call INFOexpress on 0800 257 773 to request a copy. Please have your IRD number handy.


Principal child carer
The principal child carer is the eligible parent or the person responsible for the day to day care of the children. It is not someone who cares for the children part-time or who works as the child minder.

Note

If you're not sure whether you are the principal child carer, please call us on 0800 227 773. You can call us:
  • Monday to Friday from 8am to 8pm, and
  • Saturday from 9am to 1pm.

Your age
You must be aged 16 or older.
Residency
You must meet at least one of the following residency requirements:
  • You are both a New Zealand resident and a New Zealand tax resident and have been in New Zealand continuously for at least 12 months at any time.
  • You are caring for a child who is both present and resident in New Zealand.
Note

If you and your children are in New Zealand unlawfully or hold only a temporary permit or visa, you are not a New Zealand resident for Working for Families Tax Credits purposes. If you're not sure whether you meet the residency requirements, please call us on 0800 227 773. You can call us:
  • Monday to Friday from 8am to 8pm, and
  • Saturday from 9am to 1pm.
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Old Oct 30th 2009, 2:53 am
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Default Re: Child Benefit / Working Tax credit equivalent

Here is what Work and Income writes about unemployment benefit

You may get the Unemployment Benefit if you are not in full-time work.
You must be:
  • available for, and looking for full time work
  • 18 years old or over (or 16-17 if you are married or in a civil union or in a de facto relationship and have one or more children you support).
You must also (unless you are in hardship):
  • be a New Zealand citizen or permanent resident
  • have lived in New Zealand for at least 2 years at any one time since becoming a New Zealand citizen or resident (unless you are a refugee).
You should also normally live in New Zealand and intend to stay here.
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Old Oct 30th 2009, 4:24 am
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Default Re: Child Benefit / Working Tax credit equivalent

Forgive me for misunderstanding but what is this 4 year Tax amnesty that Lardyl refers to?
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Old Oct 30th 2009, 5:57 am
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Default Re: Child Benefit / Working Tax credit equivalent

Temporary tax exemption on foreign income for new migrants and returning New Zealanders



Originally Posted by NZ IRD
Originally Posted by NZ IRD

From 1 April 2006, people becoming tax residents in New Zealand may qualify for a temporary tax exemption on some of their foreign income. This temporary tax exemption is available to those who qualify as a tax resident in New Zealand on or after 1 April 2006 and are new migrants or returning New Zealanders (transitional residents) who have not been resident for tax purposes in New Zealand for at least 10 years prior to their arrival in New Zealand.
The exemption can only be granted once in a lifetime.
The exemption

The temporary tax exemption for foreign income is for four calendar years (up to 49 months). The exemption starts on the first calendar day of the month you qualify as a tax resident in New Zealand and is valid until the last calendar day of that month four years later. For example:
You qualify as a tax resident in New Zealand on 22 April 2006 and have one or more types of foreign income that are temporarily exempt for taxes in New Zealand (see list below). You are eligible for the exemption counting from 1 April 2006 until 30 April 2010, which effectively is 49 months.
Exempt types of foreign income

Types of foreign income which are temporarily exempt from tax in New Zealand:
  • Controlled foreign company income that is attributed under New Zealand's Controlled Foreign Company (CFC) rules
  • Foreign investment fund income that is attributed under New Zealand's Foreign Investment Fund (FIF) rules (including foreign superannuation)
  • Non-resident withholding tax (for example on foreign mortgages)
  • Approved issuer levy (for example on foreign mortgages)
  • Income arising from the exercise of foreign employee share options
  • Accrual income (from foreign financial arrangements)
  • Income from foreign trusts
  • Rental income derived offshore
  • Foreign dividends
  • Foreign interest
  • Royalties derived offshore
  • Income from employment performed overseas before coming to New Zealand, such as bonus payments
  • Gains on sale of property derived offshore (held on revenue account)
  • Offshore business income (that is not related to the performance of services).
When your tax exemption ends after four years (up to 49 months), you must declare all foreign income on your annual income tax return (IR3 for individuals).
These types of foreign income are not tax exempt in New Zealand:
  • Employment income from overseas employment performed while living in New Zealand
  • Business income relating to services performed offshore.
If you have any of these types of income, you must declare them on your annual income tax return (IR3 for individuals) from the date of your arrival in New Zealand.
To be eligible
  • You must have become a tax resident in New Zealand on or after 1 April 2006, and
  • You must not have been a New Zealand tax resident at any time in the past 10 years prior to your arrival date in New Zealand. Read more about tax residency
  • This is a once in a lifetime exemption eg you can't extend your tax exemption or renew it after its expiry date
  • You or your partner cannot receive Working for Families Tax Credits while being tax exempt from foreign income, but will have to determine which is better for your situation, for example:

    You and your partner have $1,000 worth of foreign interest per year, but are eligible for $5,000 per year Working for Families Tax Credits in New Zealand if you do not claim the exemption for foreign income. In this situation, it is in your family's best interest to waive the exemption and pay New Zealand tax on the foreign interest and receive Working for Families Tax Credits. You can inform us of your foreign income on your annual income tax return (IR3 for individuals).

    Read more about Working for Families Tax Credits and how to apply.
Your obligations

The tax exemption is automatically granted if you qualify. You don't have to contact us with your information.
You are required to provide us with accurate information and to notify us of any foreign income that is not tax exempt by filing an IR3 individual income tax return every year as long as you have foreign income. Read about individual income tax.
When your tax exemption expires, you must include all your foreign income when you file your IR3 individual income tax return along with your New Zealand income. You must file an income tax return after the end of your exemption, and every tax year after that as long as you have foreign income, regardless of whether or not you notified us of your foreign income upon your arrival.
Apportion your foreign income in your tax return

If your exemption expires at any time in a tax year other than on the standard balance day of 31 March, you will have to apportion your foreign income in your tax return for that year, for example:
You qualify as a tax resident in New Zealand on 10 September 2006 and have one or more types of foreign income that are temporarily exempt for taxes in New Zealand and fulfil the other eligibility criteria as listed above. In that case, you are eligible for the temporary tax exemption counting from 1 September 2006 until 30 September 2010.
However, September is in the middle of a standard New Zealand tax year that runs from 1 April to 31 March. If you have foreign income after 30 September 2010, you now have to declare the foreign income earned from 1 October 2010 until 31 March 2011 on your income tax return for 2010/2011 eg an IR3 for individual income.
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Old Oct 30th 2009, 7:35 am
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Default Re: Child Benefit / Working Tax credit equivalent

Originally Posted by BEVS View Post
Here is what Work and Income writes about unemployment benefit
Interesting about the 'unless you are in hardship' bit........it won't let me give you any but Karma for posting the actual wording....

Last edited by luvwelly; Oct 30th 2009 at 7:41 am.
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Old Oct 30th 2009, 5:26 pm
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Default Re: Child Benefit / Working Tax credit equivalent

Question

Has any of the responding posters got children or been eligible for Working For Families Tax Credits? And has any of the responding posters had the misfortune and bad luck of not having a job within the first two years of arriving here?
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Old Oct 30th 2009, 7:05 pm
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Default Re: Child Benefit / Working Tax credit equivalent

Originally Posted by Madmaxdeux View Post
Question

Has any of the responding posters got children or been eligible for Working For Families Tax Credits? And has any of the responding posters had the misfortune and bad luck of not having a job within the first two years of arriving here?
Now I'm confused (doesn't take much) What visa category would allow a family to move over with no-one having work or money? And how could you not find work or any kind in 2 years? Even if it's not your chosen career there is always supermarket work, cleaning, dairy/farming, labouring etc. I couldn't find anything to begin with in which to use my quals and experience - it was my OH who had the job offer for us to come here - so I got a night fill job at a local supermarket - I figured any work was better than none, the extra money was much needed and it meant I was home during the day to get kids to/from school and for kids school hols and got me out meeting people.
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