Tax credits - absentees

2010 legislative amendment regarding the child income tax credit, housekeeping tax credit and absentees.

Sections LC 3(1) and LC 6(1) of the Income Tax Act 2007 have been amended to make it easier for taxpayers to understand that neither the child income tax credit (section LC 3) nor the housekeeping tax credit (LC 6) are available for a person who is an absentee for income tax purposes.

To obtain the child income tax credit, the child must be in attendance at school for the tax year, and so this tax credit is inherently not available for an absentee. The amendment to section LC 3 states explicitly that the tax credit is not available for an absentee.

Section 41A of the Tax Administration Act 1994 prevents an absentee from receiving the housekeeper tax credit. The amendment to section LC 6 states explicitly that the tax credit is not available for an absentee.