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Minimum family tax credit

The annual rate minimum family tax credit (MFTC) threshold will increase from $27,768 to $29,432 for the 2020-2021 tax year and subsequent years which is a maximum of $32 per week extra. To get this payment customers must work for salary or wages and not be self-employed.

IRD began paying the higher rate in weekly or fortnightly payments from late December 2020 to customers who receive payments throughout the year. All MFTC customers will have any unpaid increase from 1 April 2020 included as part of their end of year square up. IRD willl send a Notice of Assessment after the end of the tax year, around June/July 2021. That Notice of Assessment will indicate if the customer has an overall refund or bill once everything is taken into account.


Source: www.ird.govt.nz


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