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TAX •  18 FEBRUARY 2021 • 5 MIN READ

What is independent earner tax credit and how do I get it?

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What is Independent Earner Tax Credit?

Independent Earner Tax Credit (IETC) is a tax credit you can get if you earn between $24,000 and $48,000 per annum and are not claiming a Working for Families Tax Credit.  It is a tax credit of up to $520 so if you’ve paid more than this in tax, you can receive this back as a tax refund.​

Who is eligible to claim Independent Earner Tax Credit?

You can get IETC if you meet the following conditions: 

  • You are an NZ tax resident and your income is between $24,000 and $48,000
  • You or your partner 
  • Are not entitled to Working for Families Tax Credit, and 
  • Don't receive an oversea equivalent of Working for Families Tax Credit 
  • You are not receiving
    • An income-tested benefit 
    • NZ superannuation
    • Veteran’s pension
    • An oversea equivalent of any of the above 

Use this tool provided by IRD to check if you’re eligible for IETC. 

How do I get Independent Earner Tax Credit?

If you’re a Beany client, you don’t have to do anything as we claim it for you whilst we’re doing your tax returns. If you’re not a Beany client, then you can file a return online at the IRD and claim it, or become a client (register with us today so you don’t miss out IETC).​ You can see more information on Independent Earner Tax Credit on IRD’s website.

Call us on 0800 755 333 or contact support@beany.com for more information on this or any other tax query.​

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How much can I get?

If your pre-tax income is between $24,000 and $44,000 per annum, you can get $10 per week; if your annual pre-tax income is between $44,001 and $48,000, IETC reduces by $0.13 for every dollar exceeds $44,000.

Who are Beany?

We’re an online accounting firm that is always right here for you, your accounting pain relief. The most advanced technology lets us work way more closely with you than a normal accountant would. 

We have a dedicated team of remote accountants to take care of your business no matter where you are, so you can focus on growing your business. We take out the ‘fluff’, break down the barriers and get things done. Looking out for you is what we are all about. Get started for free today.  

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Sue de Bièvre

Beany Founder

Beany CEO and Chartered Account. An intrepid entrepreneur and feminist with a penchant for disruption; spotting problems and rolling her sleeves up to fix them makes Sue tick.

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