For many people, the answer is – Yes. Not because their tax officers are sneaking in a little more compensation for their work, but simply because some of us have overpaid our taxes. Thankfully, there is an easy way to get our money back – this is called a tax refund.
But what exactly is a tax refund? It is a refund on your income tax if you have paid too much. In New Zealand, income tax is usually handled by employers with the PAYE (Pay As You Earn) system. Under this system, income earners can still have their amount of taxes underpaid or overpaid. If you are in the situation where you have overpaid income tax, then you can claim a tax refund.
However not everyone will have overpaid taxes. But it is prudent to check your employer is deducting the correct amount of tax. Particularly people who are earning little income, still studying, or only work part-time as these are more likely to get a refund. You are also likely to get a refund are if you have received a lump sum payment (e.g bonus), had more than one employer that year, have expenses to claim or made a donation. But all salary and wages earners have nothing to lose by using a service like that of My Refund, they charge a fee but that fee is tax deductible the following year.
If you contact IR (Inland Revenue) directly, there is a chance you may find out that you have underpaid taxes. You are going to end up with a tax bill instead of a refund. But if you go through a tax agent, any refund you may have will be processed by the agent and transferred to you for a service fee. If they find that you have taxes owing instead, they will not proceed with that particular year.
So if you find yourself in need of more money, remember there’s a chance the government might owe you a bit. The tax refund process with My Refund is quick and simple, which is also Risk Free with their No Refund- No Fee policy. So don’t wait, contact us today to find out if you are owed a tax refund!
