NO MORE IR5 TAX RETURNS FOR NON BUSINESS TAXPAYERS- BUT DO THEY HAVE TO FILE INCOME TAX RETURNS
are no more IR5 tax returns to complete for salary and wage earners.
Now that the PAYE (Pay as You Earn) system has become more accurate, most
salary and wages earners and those who receive benefits and pensions are paying
the correct amount of tax
GET THESE THINGS RIGHT
employer needs to have your IRD Number and your correct tax code. This will ensure you are taxed at the right code.
If you’re on the wrong code, IRD will become aware of this and
write to you to get it changed.|
|Ensure your bank has your IRD Number to avoid paying too much tax. If your total income is over $38,000 also make sure they know the rate of tax on interest you want deducted- you can choose a higher rate to ensure you don’t have an end of year tax bill.|
SOME SALARY AND WAGE EARNERS WILL NEED A PERSONAL TAX SUMMARY
Personal Tax Summary shows income and tax deductions for the year.
It also tells you whether you will need to pay tax or if you are due a
refund. Personal Tax
Summaries will automatically be sent in June by the IRD to those people who,
according to information held by
IRD, will need to “catch up” at the end of the tax year.
You’ll get one if you:
Family Assistance from IRD, or|
Family Assistance from Department of Work and Income and earn over $20,000,
a Student Loan and entitled to an interest write off, or|
|Have used a wrong tax code or use a special tax code.|
WHAT IF YOU DON’T GET A PERSONAL TAX SUMMARY
You must request a Personal Tax Summary in July if you:
income between $38,000 and $60,000 with more than $200 of interest taxed at
33% or less, or|
income of over $60,000 with more than $200 of interest or dividends taxed at
less than 39%, or|
more than $200 in dividends or interest (regardless of whether this was
taxed at the right rate) and paid Child Support, or|
|Received more than $200 in dividends or interest (regardless of whether this was taxed at the right rate), have a Student Loan and earned over the repayment threshold of $14,768.|
you’re not automatically sent a Personal Tax Summary, and none of the above
apply, it probably means you’ve paid the right amount of tax, and don’t need
a “catch up”. But if you want
to check, you can request a Personal Tax Summary from July onwards.
WHAT IF YOU GET A PERSONAL TAX SUMMARY THAT IS INCORRECT
you wish to make additions or corrections to your Personal Tax Summary, you can
call IRD and make the changes over the phone or make them directly on the form
and return it to IRD. IRD
will then send you an amended Personal Tax Summary.
HOW DO I KNOW WHAT RATE OF TAX IS BEING DEDUCTED FROM MY INTEREST
you’ve told your bank otherwise, tax on interest will be deducted at 19.5%
(this is the appropriate rate if you earn under $38,000).
If you earn between $38,000 and $60,000, the appropriate rate is 33%.
If you earn over $60,000, the appropriate rate is 39%. If you don’t provide your IRD Number to your bank
you’ll be taxed at 39%.
CAN I CLAIM EXPENSES
there are certain expenses that can be claimed on a Personal Tax Summary, such
as Income Protection Insurance premiums.
WHAT ABOUT CLAIMING THE CHILD REBATE
you’re a school child who worked for salary and wages and paid tax, you can
claim the child rebate by requesting a Personal Tax Summary in July.
SOME PEOPLE WILL STILL GET A TAX PACK
need to file an IR3 if you:
self employed or worked on a contract basis
income from business or rentals
income that is not taxed
will be sent your IR3 tax pack in April.
If you file an IR3 and also receive salary, wages or withholding
payments, a Summary of Earnings will be sent to you by IRD on May.
This Summary of Earnings contains your earnings information that IRD have
received from your employer/s throughout the year.
YOU CAN STILL CLAIM YOUR REBATES
To claim your rebates, use the IR526 Rebate Claim Form. If you claimed for donations, childcare or housekeeper rebates the previous year, IRD will automatically send you a Rebate Claim Form. If you haven’t received a form by the end of April, you can request one by calling IRD INFO Express. Remember to have your IRD Number handy.
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