Do we repay the dole through higher rate of tax?

cmaclo

I'd really like to clarify this subject... I have'nt managed to get accurate info form the social welfare, revenue or google...


A friend of mine was on the dole last year for a few weeks... when she got a job she noticed she was on a a few % more than the usual higher rate of tax after 35K. The tax office confirmed it was because she claimed the dole and would be on a higher rate until it was fully repaid....

This affects my situation as I claimed the dole 4 months ago but found I've work now... when i called to cancel my dole application the lady asked me had i won the lotto.. and couldn't understand why i wouldn't want the money owed to me. I was thinking whats the point when i'll have to pay it back anyway. She denied that it would have to be repaid... she said 'possibly a small percentage through higher tax', but still definitely worth taking my dole money.

Can anyone clarify? cheers

wmpdd3

I've never heard of you having to pay back the dole (or JSB, as you would have gotten).

The tax rates would have gone up since 1st of Jan or sooner if you get paid a different pay period.

You would have claimed your JSB based on the fact that you have previously paid PRSI contributions. You will pay these anyway when you return to work, no more or less than someone who never claimed.

I can't see what the SW worker meant.

Balagan

You don't repay Jobseekers Benefit, just the tax on it. This doesn't apply to Jobseekers Allowance.

Explanation here http://www.revenue.ie/en/tax/it/leaflets/it24.html

cmaclo

Cheers for the input lads... I'm on JSA rather than JSB

was on to revenue again this morning and they reckon that I'll pay back about 40% of the total JSA I received... through the higher rate of tax after anything i earn over 32K, (for the current year only eg. regardless of how much you pay back your rates goes back to normal on Jan 1st) so.. it does'nt seem like a 'repayment' essentially, its more that the JSA will bump me up over the higher tax bracket.

eastbono

cmaclo wrote: »

Cheers for the input lads... I'm on JSA rather than JSB

was on to revenue again this morning and they reckon that I'll pay back about 40% of the total JSA I receive... through a higher rate of tax after anything i earn over 32K, for the current year only eg. regardless of how much you pay back your rates goes back to normal on Jan 1st

I dont understand what you mean. You do not pay back any money you received on JSA.

mrsbyrne

i dont understand either.im afraid i dont accept that this is the actual wording used by a revenue employee. i think it is your interpretation of what the revenue employee said to you. first of all the only relationship between revenue and social protection is that certain social protection payments are taxable. secondly a revenue employee would not comment on the rules and regulations of an unrelated department.the only time jsb/jsa is ever paid back is if there is an overpayment.when certain posters here, including myself, know this to be the absolute truth, then, well, im not a moderator but i dont think this kind of misinformation is fair to posters with genuine queries.

eastbono

If you had been on JSB then a certain amount of this would be taxable but JSA is non taxable.

OP please explain in detail why revenue are re-couping your JSA payments.

cmaclo

Look the whole reason i posted in the first place is because i'm completely confused by the process too! I'm not trying to misinform anyone.
My understanding was that claiming JSA shouldn't affect any tax (or anything) going forward but unfortunetly a number of people have informed me otherwise.

I will know for sure this month when i get my first paycheck. For now.. watch this space, and I will keep everyone informed when its clarified.

(obviously for financial reasons i'm praying it's complete b*llox

mrsbyrne

cmaclo wrote: »

Look the whole reason i posted in the first place is because i'm completely confused by the process too! I'm not trying to misinform anyone.
My understanding was that claiming JSA shouldn't affect any tax (or anything) going forward but unfortunetly a number of people have informed me otherwise.

I will know for sure this month when i get my first paycheck. For now.. watch this space, and I will keep everyone informed when its clarified.

(obviously for financial reasons i'm praying it's complete b*llox

if your paying more tax than you expect to, it wont be because you were in receipt of JSA.

UMMMM

I am not sure about the legislation etc but in 2009 I did claim JSB had full stamps etc.I claimed for only two weeks but my tax credits were reduced for that year by the amount I had claimed thus yes I did pay more tax for the remainder of 2009 hope this helps.

tenchi-fan

You are taxed on all your income, both salary and unemployment benefits.

The income tax is not reduced from your JB payment, instead they adjust your tax credits.

http://www.revenue.ie/en/tax/it/leaflets/it24.pdf

Jesus Shaves

tenchi-fan wrote: »

You are taxed on all your income, both salary and unemployment benefits.

The income tax is not reduced from your JB payment, instead they adjust your tax credits.

http://www.revenue.ie/en/tax/it/leaflets/it24.pdf

benefits being the key word here
JSA would not be taking into consideration in this instance