Donations: IR526 Claiming them back

Format Introduction What can I claim against Who can claim / who should claim Which tax year am I claiming against? Filling out the form General tips and tricks

Introduction and getting started My information Sources: Tax form IRD Website My background What this is (guidance), What this is not (financial advice or tax advice) My overall impression the process - Its fast and easy for the average human. No really! Is it worth it? Yes, you get 33 cents back on the dollar for very little effort (that’s $33 for every $100) What do I need to start? Print the IR526 form (search the IRD website for “IR526” then select the link to the required tax year) You have received all of your receipts for the tax year you are claiming. Tip! file them in a box or folder as you obtain them. Spreadsheet or calculator Scanner or photocopier (optional, recommended)

What can I claim against? Includes Excludes St Anthony’s school! St Anthony’s Church (and other New Zealand religious organisations) Kindergartens (state run, excludes private kindergartens or other early childcare fees) Medical research schools and universities Approved overseas aid funds Other approved donee organisations (you can look these up on the IRD website, search “Donee organisations”) Donations under $5 Word “Donations” is not written on the receipt Non residents need not apply Tuition, exam or tertiary educational institution fees Payroll giving donations you made through your salary and wages. You received these tax credits at the time of your donation If you are still not sure you can always contact the IRD

Who can claim? Who should claim? Individuals To claim you must have earned taxable income (such as salary or wages, benefit, NZ Super, self-employed income, interest and dividends) during the year you're claiming for The total donations you claim can't be more than your taxable income for the year. They check against your IR3 personal tax return, so will wait until this is filed. Note however the form allows for you to include your spouse/partner (combining your taxable income when determining the limit) Sharing receipts: married couples, civil unions and de facto relationships Great news, couples don’t have to fill out separate tax forms Tip! Its easiest to apply under the “earner” if one person is not earning taxable income and/or filling out an IR3. If donations receipts are shared across you and your spouse/partner you'll need to advise them of their details when you make your claim eg receipts are under spouse/partner’s name

Which year do I claim against The tax year is 31st March to 1 April eg the IR526 Tax credit claim form for: 2016 is 1 April 2015 to 31 March 2016 2017 is 1 April 2016 to 31 March 2017 The date of the receipt determines which tax year to claim it The IRD website states “From 1 April 2014 you can only claim donation tax credits within a period of four years, following the year in which the gift was made” If you are making regular payments then use the financial period (if stated) otherwise use the receipt date for each payment (see examples next slide)

Examples of applying receipt dates 2017 IR526 (1/4/16 to 31/3/17) 2016 IR526

Filling out the form – Part1

Filling out the form – Part 2

Filling out the form – Part 3

Finally Make copies of everything (including the completed form) Attach your original receipts Post the form and receipts to the IRD address on the form

Tips and Tricks Be honest Take copies of everything, including the form you send In case the IRD lose the application So you can copy what you did next year So you can see what you’ve claimed in the past (don’t double up) Good practice: Obtain receipts either: in the both of the couple’s names; or in the name of the person completing the form Feel free to add additional information to support your claim. It doesn’t hurt to also provide a copy of the donations invoice stating the donation information if you have it (especially when making partial payments). Eg old St Anthony’s fees which contained a mix of donations and non donations. No longer an issue! I have a donations invoice but no receipt (but the amount isn’t worth chasing up a replacement receipt)?

The End