Jun
23
2010
Tax Returns
Author: adminMany New Zealand workers are due a Tax Return, and they dont even know it yet. Many dont apply because they arent sure how to do it.
Applying for a tax return is an easy process. Theres plenty of fish in the sea when it comes to tax agents, with lots of different ways in which they help you out.
The IRD, as the official govenrment revenue collector, takes tax off your income at various rates. Its complex what makes up your rate, however your employer is the first step if you wish to know more about your tax situation.
Generally speaking, irregular incomes or secondary incomes attract different and higher rates of tax than others. In this situation, you can be refunded the surplus that exceeds your overall tax rate.
As an idea, you might be currently paying 19% of your income as tax. A bonus might be tax deducted at a much higher rate because it isnt normal income. The rate might be 39% or sometimes close to it. When your tax position is washed up, you might then be due the difference between the 39% and the 19% you should have paid.
Refunds can come about from income rebates or family tax credits. Your employer wont do this, but can advise you if may qualify for these if you ask. You will need to seek specialised advice from the appropriate government agency if you think you qualify for family assistance.
For things like earner credits, your chosen agency can prepare this for you with a minimum of fuss and time.
Should you make a lower income in a year, this is very applicable. Perhaps you are still at school, in which case you might qualify to get all of your income tax back. Its definitely worth your while to check with a tax agent to see if this could apply to you.
When dealing with a tax refund online agent, make sure you know the information you need to give them. This might be items such as photo ID, bank statements, letters addressed to you etc.
Most reputable agents will not file the tax return unless there is a refund for that year. In other words, if you have tax to pay in a given tax year, they will not file it for you. Very handy!
It will then often be around 10-20 days before the IRD can process your refund and send a cheque out to your agent. After deducting their preparation fee, the agent sends the balance out to you, by cheque or direct deposit, and then you can spend you money.
