Individual Tax Return IR3

Filing your IR3 Individual Income Return?

Inland Revenue website provide detailed information on how you can file your IR3 return. You can get information here – IRD website

 

What is an IR3 individual income return?

At the end of each tax year some taxpayers need to confirm the amount of personal income tax to be paid. This is done by filing an Individual income tax return (IR3). This tells us:

  • what your income was during the year
  • how much tax you paid on your income
  • any business expenses you claimed
  • whether you’ll get a refund or have tax to pay.

 

Do you need to file an IR3 return?

You need to file an IR3 return if you earned income other than salary, wages, interest, dividends, and/or taxable Māori authority distributions. Other income includes:

  • rental income
  • income from a taxable property sale
  • self-employed or business income
  • overseas income
  • income from cash jobs or “under the table” payments
  • income from an illegal enterprise
  • royalties
  • more than $200 of schedular payments (formerly withholding payments)
  • estate, trust or partnership income
  • distribution of income/loss from a look-through company (LTC)
  • over $200 of overseas interest and dividends that did have tax deducted
  • overseas interest and dividends that didn’t have tax deducted
  • income without PAYE deducted, such as shareholder-employee salary or a claim received under a taxable loss of earnings policy
  • allocated income from a portfolio investment entity that was taxed at a zero rate
  • received portable superannuation or Veteran’s Pension (note that due to this late change the requirement to file an IR3 return is not shown in the 2010 IR3 return guide).

You’ll also need to file an IR3 return if you:

  • have losses to claim or brought forward from the previous year
  • have excess imputation credits brought forward from the previous year
  • left or arrived in New Zealand part-way through the year
  • are filing a return for a deceased person to the date of death (if there is a requirement to file a return for the income year)
  • were declared bankrupt part-way through the year (if there is a requirement to file a return for the income year)
  • changed your balance date part-way through the year
  • received allocated income from a portfolio investment entity that was taxed at a rate lower than your correct rate
  • choose to include dividends received from a portfolio investment entity listed on the New Zealand Stock exchange, in order to claim imputation credits.

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