In- Work Tax Credits:
In-work tax credits is an incentive for people to be in the workforce while caring for their young families.
To entitle for this credit, the person must be 16 or older and the principal caregiver for a child who is financially dependent them (s MD4- MD6). They must be a full-time income earner.
Section MD5 - Age to be 16 or older
Section MD6- A person to have principal care of the dendedent means child is finacially dependent on you.
Section MD7- Either person or child meets the residence requirement.
Section MD8- Person or their spouse on not receiving income tested benefit.
Section MD9- Person or their spouse is a full time earner
Couples must work 30 hours or more and solo parents 20 hours or more a week. The payment amount is $60 per week for families with 1-3 children, with an extra $15 per week for each of the subsequent child.
MD10 ,calculation: The formual is 3120 + (780 x childern-3) x weekly periods /52
Childern is the greater of 3 and the actual number)
weekly periods is the number of weeks as mentioned in MD9(2) a paye income payment is received by the person or their spouse.
Example - Mary and Thomas working 30 hours hours a week between them, they have 4 childern, Calculations would be as follows:
3120+780 = $3900