Working for Families Square-Up Calculator
If your actual income for the year was different to what you told IRD, your WFF payments are recalculated at IR3 / auto-assessment time. This calculator estimates the refund or debt before IRD issues it.
The income you told IRD at the start of the year — drives advance WfF payments.
Your total family income for the year as confirmed at filing.
How the WFF square-up works
During the year, IRD pays Working for Families based on the family income you estimated. The Family Tax Credit and In-Work Tax Credit abate by 27 cents per dollar above $42,700, so even a small income change late in the year can change your entitlement.
After you file IR3, or once IRD finalises your auto-assessment, the entitlement is recalculated using your actual income. The difference between what you were paid in advance and what you were entitled to is the square-up:
- Refund — actual income was lower than the estimate, so advance payments were too small. IRD pays the shortfall.
- Debt — actual income was higher than the estimate, so advance payments were too large. IRD asks for the overpayment back, usually via an instalment plan.
- No change — actual income matched the estimate or both incomes fall above the full-abatement point.
Best Start year-one payments are not income-tested and are excluded from the square-up. Years 2–3 of Best Start are reconciled with their own separate abatement.
Frequently asked questions
Why did I get a WFF debt at IR3 time?
Most WFF debts come from earning more than the income estimate IRD used, often because a partner returned to work, a bonus pushed you over the abatement threshold, or self-employed income was higher than projected.
How does IRD recover an overpayment?
IRD usually offers an instalment plan, deducting the debt from future WFF payments or your tax refund. If the debt is large, IRD may set up a direct repayment schedule.
Can I avoid a square-up debt next year?
Yes — update your income estimate in myIR whenever your situation changes (new job, partner income changes, bonuses, self-employed swings). The closer your estimate is to actual, the smaller the square-up.
Does the square-up include Best Start year one?
No. Best Start year-one payments are universal and not income-tested. They are not part of the WFF square-up.
When is the square-up calculated?
When your annual tax assessment finalises — typically July to October for IR3 filers (filing due 7 July) or by mid-year for PAYE-only families on IRD auto-assessment.
Related calculators
Sources
Square-up logic and rates sourced from IRD — Working for Families end-of-year and IRD — WFF rates.