Pensioners Income Limit Exemption €36,000

Jimmy Bottles

Where a coupe (who are pensioners) have total income below €36,000 for the year, they are exempt from both Tax and USC (and obviously PRSI).

However, what is the situation where one of the couple isn't a pensioner ? Can they still avail of the €36,000 limit if they are taxed under joint assessment ?

Geuze

Whether they are receiving pensions or not is not relevant.

It's their age that matters, only the age.

http://www.revenue.ie/en/tax/it/leaflets/it1.html#section2

65 or over, that is the issue.

Geuze

USC - there is no automatic exemption from the USC for those over 65.

http://www.revenue.ie/en/tax/it/leaflets/it1.html#section18

There may be a lower rate of USC, yes, but not an automatic exemption.

Geuze

Example - couple over 65, known to me.

Six incomes, of which three pensions.

They do pay USC.

If their combined income was under 36k, then tax = zero.

Jimmy Bottles

I think you might have misunderstood.

My question has nothing to do with people actually receiving a pension, more about people of pensionable age.

I'm wondering if one person in the couple is over 65 and one is under 65, can both of them available of €36,000 exemption limit as part of joint assessment. (Both are not self assessed by the way).

Citizenpain

I believe its is the age of the older person that dictates whether the exemption applies so as long as 1 is over 65 the 36k exemption for PAYE applies



http://www.revenue.ie/en/tax/it/leaflets/it8.html



USC might still have to be paid

Jimmy Bottles

Citizenpain wrote: »

I believe its is the age of the older person that dictates whether the exemption applies so as long as 1 is over 65 the 36k exemption for PAYE applies



http://www.revenue.ie/en/tax/it/leaflets/it8.html



USC might still have to be paid

There's no USC on the State Pension right ? So in addition to the couples state pension, if both of their other incomes are below €10,000 each, there's no USC ?

ceekay74

Jimmy Bottles wrote: »

There's no USC on the State Pension right ? So in addition to the couples state pension, if both of their other incomes are below €10,000 each, there's no USC ?

Yes.

USC is dealt with seperately for each individual.

If one of them has €9000 income (not including State Pension) = No USC

If the other has €10,500 income (not including State Pension) = USC to be paid

State pension is included in the €36,000 exemption limit for PAYE purposes.

allthedoyles

Citizenpain wrote: »

I believe its is the age of the older person that dictates whether the exemption applies so as long as 1 is over 65 the 36k exemption for PAYE applies

This is correct in that as long as one of them is over 65 and they are been assessed as a married couple or civil partnership .

Then full exemption of 36k applies