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Tax Credits going to Waste

Following on from my blog post last week, Working for Families Tax Credits may be complicated but are still very generous and are going up further as from 1 April 2012:

Qualifying Child

Current Amount

New Amount

First child if under 16 $4,578 $4,822
Second child if under 13 $3,182 $3,351
Second child if 13 – 15 $3,629 $3,822

The current income thresholds below which Working for Families Tax Credits is available are:

Number of Children

Income Threshold

One $74,000
Two $90,500
Three $105,500
Four and more $120,500

With the recession resulting in a wholesale reduction in profits many business owners are entitled to Working for Families Tax Credits for the first time yet despite that, many accountants are still not helping their clients in this area. I have taken over several clients who were advised they were not entitled to Working for Families Tax Credits who were and who subsequently received substantial cheques from the IRD following my intervention. Another client who had never made a profit in his business (even before the recession) was told he couldn’t claim yet I obtained a refund cheque for him in excess of $15,000!

If you need help with your Working for Families Tax Credits or are not getting the advice and help you need from your accountants contact Nick on 0800 ASK NICK or email nick@abac.co.nz.