Students’ tax refunds are set to go straight into paying off student loan payments due to IRD’s new ‘automatic tax process’.
The new process means that the normal tax return process will need little to no attention. The system is automatically set to pay off your student loan.
However, this is not outlined in any emails students have received regarding returns.
There are some benefits to an automatic refund; third party companies will not be able to take a slice of your return as they have in the past. These companies often charge people without the know-how to complete their return themselves.
Students who want the refund to go directly into their bank account will have to log in to the IRD website and change some settings.
Log into myIR and head over to your student loan account. Click on the page that says ‘overpayment settings’, then click ‘no’.
Then head over to the drop down menu that lets you select what you want to do with your ‘overpayment’. Click ‘refund to me’.
Students should also check that bank details are up to date and fix any other arrears that may affect potential returns.
IRD could not be reached for comment on this new process.