Remember to Claim your Tax Credit

10588 tax credit reminder
10588 tax credit reminder

{1l) The 31st March is the end of the financial year. This means from 1st April you can claim a tax credit for any qualifying donations you have made in the 2013/2014 year.

What you can claim on

As an individual, if you have earned taxable income (including NZ Super), you can claim a tax credit of 33.3 per cent on donations of $5 or more to approved organisations. 

If you haven’t made a claim previously, you’ll need to contact Inland Revenue to obtain the claim form. If you have claimed before, then you should receive a claim form automatically in the mail.

For more information about which donations qualify, the maximum you can claim, and the claim process, go to www.ird.govt.nz/income-tax-individual/tax-credits/dch-taxcredits/

Collating your receipts and tax certificates

To claim your tax credit you will need to send in your donation receipts and/or tax certificates with your claim form to Inland Revenue. If you have made recurring gifts to a charity, the organisation will generally send out your tax certificate in April. The certificate will give a total figure for your donations throughout the year. To avoid postal costs, many charities opt to send their certificates via email, so keep an eye on your inbox. 

Hopefully you have kept any paper receipts for ad hoc donations you have made. It’s best to keep some sort of filing system in both your financial records and your email inbox so you know exactly where to find receipts when it comes time to claim your tax credit. 

If you know you made a donation but have mislaid the receipt, contact the organisation to ask for a copy. Make it easy for them to trace by giving them as much detail as possible – date, amount, method of payment, etc.

Is it worth the effort?

If you have not previously made a claim for a tax credit and the amount you donated is fairly small, you may wonder whether it is worth the time to prepare a claim. However the process is reasonably straight forward. Even if you feel the amount you will receive back is not worth claiming for yourself, remember you can re-donate it. It has to be the ultimate in recycling!

You can read more from Linda Grigg here