In- Work Tax Credits:

In-work tax credits is an incentive for people to be in the workforce while caring for their young families.

Requirements:

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.

Calculations

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

Example - Mary and Thomas working 30 hours hours a week between them, they have 4 childern, Calculations would be as follows:

3120+780 = $3900