Section LC 13 — Income Tax Act 2007: Tax credits for independent earners

LC 13 Tax credits for independent earners When this section applies (1) This section applies for a natural person, for a period (the credit period ) in a tax year when the person–– (a) is not receiving an income-tested benefit; and (b) is not receiving a veteran's pension; and (c) is not receiving New Zealand superannuation; and (d) is not entitled to a WFF tax credit; and (e) is not the spouse, civil union partner, or de facto partner of a person who is entitled to a WFF tax credit; and (f) is not receiving an amount that is— (i) granted outside New Zealand; and (ii) in the nature of, and paid for similar purposes as, a benefit, pension, superannuation payment, or tax credit described in paragraphs (a) to (d); and (g) is not the spouse, civil union partner, or de facto partner of a person who receives an amount that is— (i) granted outside New Zealand; and (ii) in the nature of, and paid for similar purposes as, a tax credit described in paragraph (d); and (h) is resident in New Zealand. Amount of credit (2) For the credit period, the person has a tax credit equal to the positive amount calculated using the formula–– (person's credit − full year abatement) × credit period months / 12. Definition of items in formula (3) The items in the formula are defined in subsections (4) to (6). Person's credit (4) Person's credit is, if the person's net income for the tax year is equal to or more than $24,000, $780. Otherwise it is zero. Full year abatement (5) Full year abatement is, if the person's net income is greater than $44,000 for the tax year, 13 cents for each complete dollar of the excess. Credit period months (6) Credit period months is the number of whole months in the credit period. Defined in this Act: amount , civil union partner , de facto partner , income-tested benefit , net income , New Zealand superannuation , resident in New Zealand , tax credit , tax year , veteran's pension , WFF tax credit Section LC 13: added, on 1 April 2009, by section 31 of the Taxation (Urgent Measures and Annual Rates) Act 2008 (2008 No 105).