# nz child support



## exhausted

Hello there can anyone give me the low down on the taxing structure in terms of child support in NZ. Being from the UK its very different here and (no surprise) the IRD website tells you nothing.

I want to know is the money the non-custodial parent pays in child support taxed?

If yes, my understanding in both america and UK that child support can only be taxed once, in that IF the giver is being taxed, then the recipient should not be.

I ask because for two years, Ive been receiving a domestic purposes benefit and a Temporary additional supplementary support benefit for two years a total of 550 dollars per week. Im a women (46) and my son is 5. My husband left two years ago for another women, (who has two kids), and I was left with the massive mortgage, no nz qualifications, but as of two days ago I got a job offer... YIPeee!

So I went on the IRD website using their "calculators" based in the input data on my gross salary, to work out my tax payment, but also what my family credit/in work tax credit would be which was as follows: Net income 385p/w, tax credits 189 p/w. But when I spoke to IRD they said that the 129 a week child maintenance I would get from my ex, is considered income, so my tax credits is reduced by 37 dollars a week, so that tells me, that money is subject to deductions, (taxed it maybe a stealth tax but its reduced all the same).

Im also told I have to wait 6 weeks to get any child support. So when I start work, I will be paying petrol, after school care (even though its subsidised its still a cost), and my income, while Im waiting to get child maintenance that my ex husband has paid but IRD are hanging onto for 6 weeks, will be less than what I was getting on the two benefits!

So I was considering a private arrangement, in terms of child maintenance, thinking that will give me MY child support, now when I need it... but according to the IRD website you need to fill in a form that goes through them also and they require bank account details of where the money is to be paid etc., which tells me the money is still being handled by them?

Can anyone clarify please, what aspects are taxed, and is it possible to circumnavigate the IRD even if Im declaring it as (child support income).

Regards

Lorna


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## jenswaters

exhausted said:


> Hello there can anyone give me the low down on the taxing structure in terms of child support in NZ. Being from the UK its very different here and (no surprise) the IRD website tells you nothing.
> 
> I want to know is the money the non-custodial parent pays in child support taxed?
> 
> If yes, my understanding in both america and UK that child support can only be taxed once, in that IF the giver is being taxed, then the recipient should not be.
> 
> I ask because for two years, Ive been receiving a domestic purposes benefit and a Temporary additional supplementary support benefit for two years a total of 550 dollars per week. Im a women (46) and my son is 5. My husband left two years ago for another women, (who has two kids), and I was left with the massive mortgage, no nz qualifications, but as of two days ago I got a job offer... YIPeee!
> 
> So I went on the IRD website using their "calculators" based in the input data on my gross salary, to work out my tax payment, but also what my family credit/in work tax credit would be which was as follows: Net income 385p/w, tax credits 189 p/w. But when I spoke to IRD they said that the 129 a week child maintenance I would get from my ex, is considered income, so my tax credits is reduced by 37 dollars a week, so that tells me, that money is subject to deductions, (taxed it maybe a stealth tax but its reduced all the same).
> 
> Im also told I have to wait 6 weeks to get any child support. So when I start work, I will be paying petrol, after school care (even though its subsidised its still a cost), and my income, while Im waiting to get child maintenance that my ex husband has paid but IRD are hanging onto for 6 weeks, will be less than what I was getting on the two benefits!
> 
> So I was considering a private arrangement, in terms of child maintenance, thinking that will give me MY child support, now when I need it... but according to the IRD website you need to fill in a form that goes through them also and they require bank account details of where the money is to be paid etc., which tells me the money is still being handled by them?
> 
> Can anyone clarify please, what aspects are taxed, and is it possible to circumnavigate the IRD even if Im declaring it as (child support income).
> 
> Regards
> 
> Lorna


Wow, Lorna, this sounds like a very confusing nightmare. I'm sorry, I really don't have any answers as to how this works. Have you tried contacting someone who may be able to give family law advice? They may have an alternative, or some clarification. 
Wish I could give more advice or help. Good luck


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## walshdon

Have you tried www.cab.org.nz. It is the citizen advice here.


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## NaeTeaspoon

exhausted said:


> Hello there can anyone give me the low down on the taxing structure in terms of child support in NZ. Being from the UK its very different here and (no surprise) the IRD website tells you nothing.
> 
> I want to know is the money the non-custodial parent pays in child support taxed?
> 
> If yes, my understanding in both america and UK that child support can only be taxed once, in that IF the giver is being taxed, then the recipient should not be.
> 
> I ask because for two years, Ive been receiving a domestic purposes benefit and a Temporary additional supplementary support benefit for two years a total of 550 dollars per week. Im a women (46) and my son is 5. My husband left two years ago for another women, (who has two kids), and I was left with the massive mortgage, no nz qualifications, but as of two days ago I got a job offer... YIPeee!
> 
> So I went on the IRD website using their "calculators" based in the input data on my gross salary, to work out my tax payment, but also what my family credit/in work tax credit would be which was as follows: Net income 385p/w, tax credits 189 p/w. But when I spoke to IRD they said that the 129 a week child maintenance I would get from my ex, is considered income, so my tax credits is reduced by 37 dollars a week, so that tells me, that money is subject to deductions, (taxed it maybe a stealth tax but its reduced all the same).
> 
> Im also told I have to wait 6 weeks to get any child support. So when I start work, I will be paying petrol, after school care (even though its subsidised its still a cost), and my income, while Im waiting to get child maintenance that my ex husband has paid but IRD are hanging onto for 6 weeks, will be less than what I was getting on the two benefits!
> 
> So I was considering a private arrangement, in terms of child maintenance, thinking that will give me MY child support, now when I need it... but according to the IRD website you need to fill in a form that goes through them also and they require bank account details of where the money is to be paid etc., which tells me the money is still being handled by them?
> 
> Can anyone clarify please, what aspects are taxed, and is it possible to circumnavigate the IRD even if Im declaring it as (child support income).
> 
> Regards
> 
> Lorna


Hi Lorna,
The CS payment is only taxed once (before it is given to the custodial parent) but for the purposes of 'Working for Families' it is your total income that is used (included any child support paid to you).
Once you are off the benefit you can opt to have a completely private arrangement (that that IRD has nothing to do with except knowing how much is paid for the purposes of calculating your Working for Families entitlement) - however you cant organise this until you are completely off the benefit.
Hope this helps.


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## kiwi ken

exhausted said:


> Hello there can anyone give me the low down on the taxing structure in terms of child support in NZ. Being from the UK its very different here and (no surprise) the IRD website tells you nothing.
> 
> I want to know is the money the non-custodial parent pays in child support taxed?
> 
> If yes, my understanding in both america and UK that child support can only be taxed once, in that IF the giver is being taxed, then the recipient should not be.
> 
> I ask because for two years, Ive been receiving a domestic purposes benefit and a Temporary additional supplementary support benefit for two years a total of 550 dollars per week. Im a women (46) and my son is 5. My husband left two years ago for another women, (who has two kids), and I was left with the massive mortgage, no nz qualifications, but as of two days ago I got a job offer... YIPeee!
> 
> So I went on the IRD website using their "calculators" based in the input data on my gross salary, to work out my tax payment, but also what my family credit/in work tax credit would be which was as follows: Net income 385p/w, tax credits 189 p/w. But when I spoke to IRD they said that the 129 a week child maintenance I would get from my ex, is considered income, so my tax credits is reduced by 37 dollars a week, so that tells me, that money is subject to deductions, (taxed it maybe a stealth tax but its reduced all the same).
> 
> Im also told I have to wait 6 weeks to get any child support. So when I start work, I will be paying petrol, after school care (even though its subsidised its still a cost), and my income, while Im waiting to get child maintenance that my ex husband has paid but IRD are hanging onto for 6 weeks, will be less than what I was getting on the two benefits!
> 
> So I was considering a private arrangement, in terms of child maintenance, thinking that will give me MY child support, now when I need it... but according to the IRD website you need to fill in a form that goes through them also and they require bank account details of where the money is to be paid etc., which tells me the money is still being handled by them?
> 
> Can anyone clarify please, what aspects are taxed, and is it possible to circumnavigate the IRD even if Im declaring it as (child support income).
> 
> Regards
> 
> Lorna


Hi Loma -hope you are enjoying your new life in NZ - best advise is that you start a private arrangement with your ex- payment can be made by him to you without going through IRD . The only time that the child support payments need to through IRD is when you are in receipt of any form of benefit- you could also get your ex to pay dirrect to an account held by your child/children .
Good luck.


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