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Few questions regarding a Students tax situation

  • 30-04-2011 1:52pm
    #1
    iii Stevo iii
    Registered Users, Registered Users 2 Posts: 285 ✭✭


    I'm doing a 2 year Masters.
    Finishing my 1st year in May.

    Q1.
    If I get summer work, from June-September do I pay tax on my income over these months before I start my second year?

    Q2.
    My 2nd year is full time but no lectures. Just a thesis write up. Students are allowed to get full time work and do the masters with there employer.
    If I got a full time job in the region of 25,000, still registered as a student and doing my thesis, where does that leave me regards tax on my income?


Comments

  • #2
    maddogcollins
    Registered Users, Registered Users 2 Posts: 998 ✭✭✭maddogcollins


    Q1.
    If I get summer work, from June-September do I pay tax on my income over these months before I start my second year?

    This will depend on your income level. Assuming you are single you will be intitled to single person and PAYE tax credits.

    These are currently €1,650 each per annum. This means that you will have credits of €3,300 per annum to use before you start "paying tax".

    Every person pays tax regardless of being a student or not. You will be able to earn up to €16,500 per annum before you will "pay tax", i.e you have a credit to go against it.

    €16,500 * 20% = €3,300 - credit of €3,300 means no tax deducted.


    Q2.
    My 2nd year is full time but no lectures. Just a thesis write up. Students are allowed to get full time work and do the masters with there employer.
    If I got a full time job in the region of 25,000, still registered as a student and doing my thesis, where does that leave me regards tax on my income?

    Again, being a student does not come into play.

    Going on the above credits:

    €25,000 * 20% =€5,000 - €3,300 (credit) = €1,700 tax payable.

    Thus your take home will be €25,000 - €1,700 = €23,300 - USC/PRSI etc...USC will be around €1,000 and PRSI will be around €800.

    Actual take home pay will be circa : €21,500*

    Hope that helps

    * Calculations are estimates


  • #3
    mari2222
    Registered Users, Registered Users 2 Posts: 568 ✭✭✭mari2222


    And just to add that the per annum relates to a calendar year; so each calendar year is a "new" tax year.:)


  • #4
    pigeonbutler
    Registered Users, Registered Users 2 Posts: 666 ✭✭✭pigeonbutler


    Just to add to the very comprehensive response above, one of the greatest urban myths out there is that "Students are exempt from tax". It's been knocking around for years.

    Where it stems from is that students rarely earn enough in the year to use up all their tax credits and find themselves in the tax net and so jump to the conclusion that they're exempt. But one's status as a student as no impact on one's tax liabilities.

    If a student earns income in a year he is taxed just the same as anyone else earning the same amount.


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