Resolutions for the new tax year
The new tax year has begun. This is a good time to take stock of your finances and ensure you have everything in order for the 12 months ahead.
IETC: The Independent Earner Tax Credit is available to people earning between $24,000 and $48,000 a year, who aren’t getting any other form of government assistance. You can get up to $10 a week or $520 a year.
People who have an ME or MESL tax code automatically have the credit calculated in their pay but other workers need to file an income tax return to receive it.
Check for a tax refund: You can file a refund for up to the past five tax years.
To claim, log on to the Inland Revenue site and register for MyIR then use the calculator to work out whether you’re owed money.
A record 342,014 taxpayers applied for refunds last year using the myIR online service.
You’re more likely to be due a refund if you’ve changed jobs during the year, had time out of the workforce or received an extra payment such as redundancy.
Set up a regular donation: Now is a good time to set up a regular donation to charity.
If your employer offers it, you can sign up for payroll giving, donating from your pay and receiving an immediate tax credit in return.
This stops you having to wait until the end of the next tax year to claim your 33 per cent tax credit for donations.
If you’ve been donating to a charity over the past year, file a refund to claim your rebate. You can then choose to donate the rebate, too, should you wish.
KiwiSaver: Are you on track to have contributed at least $1042 of your own money to KiwiSaver by June 30, to get the full government contribution of $521?