Tax return problem

Gene2

Hello,

I retired early (ill health) a couple of years ago and paye tax is deducted from my pension each month. I also complete a form 11 tax return every year as we have an apartment that we pay tax on the rental earnings for the last few years.

I did some work last year - 2011 -for my old company (semi state) and I will be including these earnings ( about €7k in total) in my 2011 tax return which I hope to complete in the next couple of weeks. This work was all completed in 2011. I sent in an invoice about 5 months ago but I didn't receive payment for the work until last month. One of the reasons I did this work was to get an S stamp for 2011 which should help me to build up my stamps contribution for when I reach 66 years of age in a few years time.

If I just include these extra earnings (the 7k) in the tax return for last year, even though I actually got paid this year, will revenue treat it as earnings for 2011 and deduct prsi etc, which will give me the S stamp for 2011 or is there something else that I would need to do?

These extra earnings were a once off and I won't get this opportunity again so I'm hoping to do this right this time otherwise I think I will miss out potential benefits when I reach 66 (or maybe 67 or older if things change in future budgets!)

This is a bit long winded I know but any advice at all would be most appreciated.:)

Shane732

Gene2 wrote: »

Hello,

I retired early (ill health) a couple of years ago and paye tax is deducted from my pension each month. I also complete a form 11 tax return every year as we have an apartment that we pay tax on the rental earnings for the last few years.

I did some work last year - 2011 -for my old company (semi state) and I will be including these earnings ( about €7k in total) in my 2011 tax return which I hope to complete in the next couple of weeks. This work was all completed in 2011. I sent in an invoice about 5 months ago but I didn't receive payment for the work until last month. One of the reasons I did this work was to get an S stamp for 2011 which should help me to build up my stamps contribution for when I reach 66 years of age in a few years time.

If I just include these extra earnings (the 7k) in the tax return for last year, even though I actually got paid this year, will revenue treat it as earnings for 2011 and deduct prsi etc, which will give me the S stamp for 2011 or is there something else that I would need to do?

These extra earnings were a once off and I won't get this opportunity again so I'm hoping to do this right this time otherwise I think I will miss out potential benefits when I reach 66 (or maybe 67 or older if things change in future budgets!)

This is a bit long winded I know but any advice at all would be most appreciated.:)

The date you raised the invoice is the date your taxable on the income.

You would be incorrect to include the income in 2012. The income should be included in 2011.

Gene2

Hi Shane, Thanks for the quick reply.

Just to be sure I understand you correctly - I was going to return the income for 2011 as you say that would be the correct thing to do. But I invoiced in February, ( 5 months ago), so does that mean it should be returned for 2012?

Tks