Not sure I should be taxed

alexlyons

I'm a student working about 32 hours a week in summer, about 14 in winter earning €9.50 an hour. There was a guy there last year, who if I could contact I'd ask him, who didn't pay a cent of tax, PRSI or anything, not even income levy.

It was all legal and done through the books, I remember hearing something about how there was a loop hole for being a student and not paying it. Obviously I'm not trying to break the law, but in this day and age, every cent counts. I used to not pay anything, but I think that was due to not earning enough and it was also in a different job.

Any thoughts on this??

sealgaire

Dunno, I always had to pay tax while working part time in college

alexlyons

Ye most people do, but AFAIK there is a loop hole that I'm hoping some tax genius can point out, as this guy always got exactly his hours times his wage!

jockey#1

To pay tax you need to earn over €18,300 this year provided you are entitled to the personal credit and PAYE credit. Based on your wages details you provided you will earn €304 p.w. Your credits cover this.

You will not be exempt from the income levy if your income exceeds €15,028 this year.

Lucky you to have a job :P

alexlyons

Thats pretty helpful. I am getting taxed the income levy, and I most definitely will not exceed €15028 this year. SO whats the best way to get that back? Do I have to wait to get an audit done? And any idea with PRSI?

jockey#1

Come the end of the tax year i.e. 31st Dec fill out the income levy refund claim form which is readily available on the Revenue website www.revenue.ie.

Regarding PRSI you should not be paying any once you stay under €352 in any given week. If you do go over this amount in any week there is no way of getting it back. If you are looking at your payslip and you see that PRSI is being deducted make sure you are not getting confused between your employers PRSI contribution and yours.

Legend100

The "students don't pay tax" think is a myth Alexlyons, it is just that they usually don't earn enough working part time to pay tax so they think they are not obliged to pay it.


As jockey said, on the wage details you gave, you will be deducted the income levy as you are earning over 290 a week. You can calim a refund at the end of the year. Some payroll packages actually will refund it to you if it is due in the last payroll week of the year, providing you are still working for the same employer.

You shouldn't be paying PRSI as jockey said. As regards tax, make sure to check your tax credit cert you got in the post from revenue that you have a personal credit of 1830 and a paye credit of 1830.

Manofthewest

Your paying the Income Levy cause your earning over €289 per week. At the end of the year if you have not exceeded €15,028 in the year you can be refunded the Income Levy about. If you have been with the same employer all year. They can make the adjustment and refund it to you or you can get the refund directly from the Revenue as mentioned above.