[barryp]

This is a tip for those of you who have been employees here in NZ for less than an entire fiscal year (begins April 1 annually).

Normally there is no need for an ordinary employee who works all year to file a tax return; PAYE deducts the appropriate amount of tax with every paycheck such that the total withheld covers the tax bill closely. The IRD notices most exceptions and automatically notifies them, e.g. fulltime students with employment, family support, etc.

But if you work here for less than one year, you'll be withheld assuming you've been here all year. So you will be overwithheld, and it is WELL WORTH your time to file an IR3 return. You'll be taxed in a lower bracket (unless your annual salary would have been entirely in the lowest bracket).

The IR3 form asks you to give a reason for filing and to state your arrival date in NZ. In my case, we arrived only one week before I started to work, so I assumed the IRD would prorate the tax bill based on my actual number of days here and the refund would be negligible. (IRD asks for your dates within NZ; you don't do any calculations.) It was a decent amount of money, in fact.

I presume the same applies to people who LEAVE the country before working a full tax year, given how the form reads, but that's not my particular situation.

So again, if you've worked here as an employee for less than the full April-March tax year, even with more than one employer, it's well worth the effort to file an IR3. :D

[willsken]

Thanks Barry, did try to rep you but it wouldn't let me! :D

[steviec]

Thanks Barryp.
will make a mental note of that.

[Anita & Marco]

As far as I am aware you should also mention the amount of money you earned during the NZ fiscal year from overseas employment. We filed the return for 2005/2006, since we only arrived in November 2005 and got the amazing amount of $1.81 returned.

But of course, different people, different salaries, different periods, different returns.

We have now been here another full fiscal year and have visited an accountant who does the process for us. Would be interesting to see what this will bring us. Seems like we can get an amount in return since we have rented out part of our house.

Cheers,
Anita

[constablechuck]

My wife only worked for part of the year and ended up getting a refund, all new migrants will get an IR3 the first year they work in NZ, when she got the IR3 she just called IRD and they asked her some questions and then told her she didn't need to file an IR3, they sent her a Personal Tax summary instead and she still got her refund.
She was told that the only time you need to do an IR3 is if you received "untaxed" income, otherwise you can just call and ask for a personal tax summary which lets you know if you get a refund or a bill.
New migrants are automatically entitled to a temporary exemption on foreign income, but if you use the exemption then you can't get any family tax credits until the exemption expires, I know someone who has two kids, works full time and gets about $150 a week in family tax credit payments from IRD, so for some it pays not to use that temporary exemption on foreign income, my advice is to call IRD and ask them what your entitled to.

[liamnrach]

Barry

Top bit of gen, I have put that in my 'useful stuff to keep' file:D

I've rep'd you too old bean:nice1

Cheers

Liam

[barryp]

She was told that the only time you need to do an IR3 is if you received "untaxed" income, otherwise you can just call and ask for a personal tax summary which lets you know if you get a refund or a bill.

That's not correct, according to the written documentation IRD provided me. You get the Personal Tax Summary first, then you'll see an annotation on page 3 telling you to file an IR3 to deal with this dates issue, regardless.

That someone on the phone said otherwise is not at all surprising, part of the No Worries culture. My point in posting this tip is that, if you think an IR3 isn't necessary, file it anyway and (a) you'll have a more easily verified paper trail for future reference and (b) you might get a pleasant financial surprise.

Your point about family tax credits is well taken and correct; I tried to mention that in my initial post but did a poor job. Also if you're self-employed, the game is rather more complicated. My situation: employee, straight salary income (with maybe $40 in bank interest), no family tax credits, no special tax classification but DEFINITELY using that foreign income exemption.

[katandbob]

I just filled in the errant sons IR3 - double checked with a nice gal called Rebecca at IRD, and hes entitled to $184 back - since he's no longer here I am transfering it to his Brothers Student loan (you have a list of different ways to get it refunded and you can transfer it to a relatives tax or Student loan) He only worked for 10wks, and was here 5 mths.

only 3 more forms to go LOL

Kat

[Brad77]

I worked Feb and March this year, filed a tax return and got $95 back yesterday. I am happy! Every bit helps.

[zardell]

Cheers Barry - I'll look into that.

Julie

xx

[nippa&pippa]

Net Losses for question 28...
anyone can explain this?

My husband have tried to call them several times but he cannot be on phone for more than 15mins waiting for to be connect, so he gave up. So we can't get info on net losses. I have tried to use email but not available because risk of sercurity??
Do we need net losses? are there is other ways we can get it? we just arrived last oct 31st 2006.