Last year the IRD had $180m in overpaid tax, so if you’re one of the ones who overpaid now is your time to claim it back.
EnableMe's Hannah McQueen joined Weekend Life with Carly Flynn with everything you need to know about tax returns.
Some people may have overpaid their tax this year but don’t even know it. Ms McQueen had some simple tips for knowing when you may be entitled to a refund:
If you only worked part of the year.
If you received a bonus.
If you changed jobs or positions.
The payroll system always assumes that you’ve earned on the higher income for the whole year and deducts income based on that rate.
If you’ve been on a lower pay rate at any point of the year then the deduction was likely too much.
There are some things to be aware of when filing a tax refund, first and foremost that you may be charged up to 20% of your refund by companies such as MyTax and Woohoo.
- Earning more is not the answer to your money woes
- Bouncing back after a major financial setback
- Just 1 in 4 know KiwiSaver is fair game in divorce
If you file for a tax refund and are found owing money you will have to pay the tax owed as well as any fees relating to the process - so be sure you know whether you're owed money before filing!
Compulsory returns ended in the 1990s so there is no obligation for you to file a tax return.
From from the middle of June you can request your Personal Tax Summary and get the ball rolling on getting some money back.
Listen to the full interview with Hannah McQueen above.