Independent Earner Tax Credit

ANSWER ID:30883

The tax codes "ME" and "ME SL" are for employees that are eligible for the Independent Earner Tax Credit (IETC). Learn more about this tax credit on the Inland Revenue Website.

This tax credit is available to employees who have an annual income of between $24,000 and $48,000 and meet all other criteria:

• The employee must be a NZ resident for tax purposes.
  
• The employee must not be receiving an income tested benefit or NZ Superannuation.
  
• The employee must not be receiving a Student Allowance.
  
• The employee or their partner must not be receiving Working for families Tax Credits, either during the year or as a lump sum.
  

Employees who earn between $24,000 and $44,000 annually will receive an extra $10 per week.

Employees who earn between $44,001 and $47,999 will receive an abated entitlement. The abatement is $0.13c in each dollar.

Employees can claim the credit by completing a 'Tax Code Declaration' form (IR330) or by notifying their employer in writing of their want to change their tax code to one of the following:

• ME - Main Income with IETC
  
• ME SL - Main Income with student loan and IETC