An individual with $50,000 or less invested overseas
If you’ve received dividends through Hatch (or any other form of overseas income), you are likely to need to complete an individual tax return by July 7 2019 (unless you have an extension from a tax agent). The IRD has a guide to help you with filling out the IR3 form, the “Overseas income” section on page 19 is relevant to income you’ve received through Hatch.
The numbers you need for income received through Hatch will be on your Tax Statement (we'll email you when this is available). As long as you have no other overseas income, and you’re not investing for a profit, simply add the above numbers into the ‘overseas income’ section of your tax return. This tells the IRD your dividend income and ensures you get a tax credit for up to 15% of the withholding tax you’ve already paid in the US.
We’ve done the calculations for you to ensure you are just claiming a tax credit of up to 15% of the withholding tax you’ve already paid on dividends, but you can get the full breakdown of your dividend transactions on your Tax Statement. You can (and should) use these to ensure your tax is calculated correctly for your situation.
Individuals with over $50,000 invested overseas OR investing on behalf of most trusts
Your overseas income falls under the FIF rules. We’ve provided some general information on how this works on our tax blog, and because everyone is different, we suggest you get an expert to help.
On your Tax Statement in your Hatch account, we provide downloadable spreadsheets that show all of your transactions from the tax year. You can use these transactions to calculate the tax you need to pay using the various FIF calculations.
If you want to do the calculations yourself, Sharesight offer FIF reporting*.
Just sign up to an Expert plan and import your Hatch buy and sell transactions spreadsheet to get started. They do a bunch of magical wizardry to calculate all your dividend payments, withholding tax deducted and corporate actions. You can check these against the spreadsheets we provide and get the results of each of the FIF calculations out the other end. They also provide some helpful advice:
- How to calculate your NZ FIF income
- Calculating taxable gains on share trading in New Zealand
- 5 ways Sharesight helps NZ investors at tax time
*While we think Sharesight are great, we didn't build their tax reports and we don't know your unique tax situation. It's up to you to make sure the tool is right for you and the information you provide to the IRD is accurate.