The income-dependent combination tax credit (IACK) is a tax benefit for working parents with a child under the age of 12. You are eligible if your child is younger than 12 on January 1st and has been registered at your address for at least 6 months. Additionally, your income must meet certain conditions, and you should not earn more than your fiscal partner (if you have one).
The benefit is that you receive a tax advantage because you have the lower income, and you generally do not need to report this separately, as long as the tax return, which we handle for you, is correct. That’s why it’s important—and exciting—that you update us if you’ve become a parent again and have a fiscal partner. We’ll celebrate the arrival of a new Bookie Baby behind the scenes and make sure everything is processed correctly in your tax return.
After the tax return is filed, the Tax Authorities will process this automatically.