Forum Home
PC World Chat
 
Thread ID: 109964 2010-05-29 09:19:00 IRD don't make information easy to find Greven (91) PC World Chat
Post ID Timestamp Content User
889173 2010-05-29 09:19:00 I just found out that anyone with income protection insurance can claim the tax back on it. I had to specifically search for income protection to find a page confirming it, and I still can't find an official IRD page on what counts as "allowable expenses" for a salary or wage earner. :badpc:

I went for Mortgage Repayment Insurance instead of Income Protection Insurance & it appears that isn't an allowable expense. I thought they were similar enough that if one qualified the other would too.
Greven (91)
889174 2010-05-29 09:23:00 At one time if you work from home you could claim part of the mortgage as an expense. Sweep (90)
889175 2010-05-29 09:36:00 To claim Mortgage payment insurance you would have to go to whomever you insured the house with.
After my husband died, I had a phonecall from State to say that they owed me $1200 as a payment for mortgage repayment on our house that he had taken out, and would I like a cheque or have it paid direct credit? That was such a nice surprise!

LL
lakewoodlady (103)
889176 2010-05-29 18:00:00 The guide to filling out your ID3 / IR 5 taxpack tends to be fairly good at outlining the allowable expenses, although it's as boring as reading a dictionary, and full of just as many words that you can't understand.

Yes, there are some bits of IRD info that seem impossible to obtain. Some years ago I was setting up an LAQC, and the paperwork made reference to a formula, the formula was to be found in a specific IR document.

I went to the local office - no copies of it. I ordered it - it never arrived. I eventually was able to determine that in my case the formula would give a total of zero, and was able to proceed with things, but they certianly do leave a minefield of traps for those unfamiliar with their processes and their jargon.

Even though I've been qualifying for refunds for years, I still freakin hate tax time, and consider tax returns to be a dreadful form of self abuse.
Paul.Cov (425)
889177 2010-05-29 18:05:00 By the way, there's still one further complication for you... you can only claim the tax back on your income replacement insurance if it is a type that produces income that IRD in turn is able to tax you for. It suggests there are some other forms of income replacement that are not taxable, and these insurance expenses cannot be claimed.

I think half the time the tax system works on making stuff so confusing that folks don't know what they can and can't claim, so they opt for the safe and simple option of not claiming anything that they are elligible for.
Paul.Cov (425)
889178 2010-05-29 22:43:00 Mortgage repayment insurance is not related to the income earning process and hence will not be claimable.

Those who have taken out income protection insurance should receive a letter from their advisor setting out the amounts that are generally deductible in their tax return.

If you are on salary and wages the deductions you are allowed to claim are very limited and you shouldn't need to complete an IR3 as you can claim these expenses in the personal tax summary.

If you are self employed or have rental or investment income then you really should get an accountant to do this for you.
looseleaf (10866)
889179 2010-05-29 22:55:00 By coincidence there's a Kiwi made movie on TV tonight that deals with a man vs the IRD.

Channel 3:-

We're Here To Help
Sun-30-May 22:25

DURATION: 105

GENRE: Movies And Features

RATING: PGR
DESCRIPTION: A Kafkaesque New Zealand comedy based on the true story of one man's David-and-Goliath battle with the IRD. Erik Thomson, Miriama Smith, and Michael Hurst.
Sweep (90)
889180 2010-05-30 04:24:00 By coincidence there's a Kiwi made movie on TV tonight that deals with a man vs the IRD.

Channel 3:-

We're Here To Help
Sun-30-May 22:25

DURATION: 105

GENRE: Movies And Features

RATING: PGR
DESCRIPTION: A Kafkaesque New Zealand comedy based on the true story of one man's David-and-Goliath battle with the IRD. Erik Thomson, Miriama Smith, and Michael Hurst.

Isn't he bankrupt again now?
Greven (91)
889181 2010-05-30 05:39:00 Isn't he bankrupt again now?

I don't know and admit that I don't care.
Sweep (90)
889182 2010-05-30 07:49:00 Isn't he bankrupt again now?

Yeah, the receivers are trying to grab his stuff. Meanwhile he has his lawyers blocking them.

I suspect, much like his wingless MIG jet, he'll never be a high flyer again.
Paul.Cov (425)
1 2