What Is Family Tax Credit

By | March 25, 2018

A family tax credit is a payment you receive for each child you have in your care. However, there are some conditions you need to fulfill to cash in those checks.

First of all, you can get a family tax credit if you have an income counting as a salary or wages, are self-employed, or receive a student allowance, NZ Superannuation or Veteran’s Pension or have any other proven income.

A dependent child will not bring family tax credit if you already receive foster care allowance, orphan’s benefit or unsupported child’s benefit for. Additionally, the child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister or a descendant of any of these individuals, including a grandchild, niece or nephew.

Finally, the child must take the Citizenship Test, meaning that he or she must be a U.S. citizen, U.S. national, or U.S. resident alien.

The amount you receive depends on three variables: your annual family income, the number of dependent children in your care and on the age of these children. You can receive a higher rate with your first child if their ages are 16 or older.

Category: tax

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