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Tax Calculation Thread

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  • Registered Users Posts: 1,939 ✭✭✭Citizenpain


    You mean....75% of the mortgage INTEREST is allowed against the rent if prtb registered . The capital repayments are not allowed

    http://www.revenue.ie/en/tax/it/leaflets/it70.html


  • Registered Users Posts: 12,693 ✭✭✭✭Snake Plisken


    Folks just looking for advice on how to submit these claims on via the PAYE Anytime online service, I have both Med 2 forms filled out which I don't have to send in, the root canal cost me 770 with an Endodontist, a few months later I had a crown fitted which cost 850.

    So I click on the 2013 tab and click the Health Expenses tab and click on the non-routine dental expenses, now do I put in the total amount for the two med 2 forms which is 1620 or do I need to put it in as two separate claims?

    Thanks


  • Registered Users Posts: 1,939 ✭✭✭Citizenpain


    Total is fine as long as they are in the same calendar year . Keep the med2s in case of audit


  • Registered Users Posts: 9 ABCCBA


    Hi everyone, Could anyone give me some advises to complete this question?
    thank you!

    Tom Jones, aged 60, has been running his business for many years. He has decided to take early retirement. His daughter, Sonya, has been working in the business for the last 5 years. Tom would like to transfer the business to Sonya.

    Alternatively, a local businessman has made an offer to buy the business for 850,000.

    REQUIRED:
    (a) Advise Tom of any capital gains tax liability that he might have
    (i) on the transfer of the business to his daughter
    (ii) on the sale of the business to the local businessman.
    (b) Recommend which course of action he should take in order to minimise his tax liabilities.

    Note: Marks will be awarded for numerical examples used to support your advice


  • Registered Users Posts: 16 morningperson


    I am a PAYE worker and I started maternity leave a few weeks ago. I am receiving maternity benefit payments of 230 euro per week, paid directly into my bank account. My employer let me know they will deduct 920 a month from my salary (or 230 a week for 26 weeks).
    I am wondering if this is correct, or if an element of the 230 is related to the tax on materity benefit and will be automatically be deducted via tax credit changes.
    So if my employer deducts the full 230 per week am I paying the taxed part of my maternity benefit twice?


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  • Registered Users Posts: 68,317 ✭✭✭✭seamus


    No, your employer is making sure you don't pay extra tax.

    Example 1 here is exactly what they're doing:
    http://www.citizensinformation.ie/en/reference/case_studies/case_study_taxation_of_maternity_benefit.html


  • Registered Users Posts: 2 Verdure


    Suppose one returns to Ireland after an absence of six months or more, with enough money to buy a suburban house. What taxes would that lump sum be subject to?


  • Registered Users Posts: 9,798 ✭✭✭Mr. Incognito


    Sorry.

    Do your own homework.

    I'll dump it in the calculation thread and someone who has time might decided to give you a hand


  • Registered Users Posts: 16 morningperson


    Maternity benefit taxation query
    ___________________________

    I'm drawing a blank attempting to put it all together. But say for example:

    I receive 920 euro maternity benefit per month paid directly to me.
    My employer deducts 920 from my gross monthly salary.
    Revenue reduce my Standard rate cutoff point to recoup the tax on maternity benefit 920 from my salary. This is because the 920 was deducted from my gross salary so I haven't already paid tax on it.

    Is this what should happen?

    However...since my original post I have now been paid and my employer doesn't seem to have deducted the 920 euro as we agreed they would.
    Do I need to ensure that the deduction of maternity benefit from my salary takes place in the same months that Revenue have reduced the standard rate cutoff point. Otherwise I think I would end up paying more tax than I should if the months are mismatched?


  • Registered Users Posts: 6,893 ✭✭✭allthedoyles


    Maternity benefit taxation query
    ___________________________

    I'm drawing a blank attempting to put it all together. But say for example:

    I receive 920 euro maternity benefit per month paid directly to me.
    My employer deducts 920 from my gross monthly salary.
    Revenue reduce my Standard rate cutoff point to recoup the tax on maternity benefit 920 from my salary. This is because the 920 was deducted from my gross salary so I haven't already paid tax on it.

    Is this what should happen?

    However...since my original post I have now been paid and my employer doesn't seem to have deducted the 920 euro as we agreed they would.
    Do I need to ensure that the deduction of maternity benefit from my salary takes place in the same months that Revenue have reduced the standard rate cutoff point. Otherwise I think I would end up paying more tax than I should if the months are mismatched?

    Your first paragraph is wrong or would have been wrong if your employer had to do this .

    But your employer was correct including the Maternity Benefit in your gross pay.

    Revenue don't need to mess with your tax credits / SRCOP , and you will now pay the correct amount of tax on MB

    When you receive P60 , you will now have two income figures :
    1. Gross income including taxable benefit
    2. Total amount of taxable benefit included in above figure


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  • Registered Users Posts: 415 ✭✭milhous


    My wife will be going on mat leave in July, I'm not working so she has my tax credits. As per her contract she is not entitled to any mat leave from work, so it will just be the €230 a week from the government. As I understand that €230 is taxable. Does this mean we would have to wait until the end of the year to claim any tax back?

    Also as we are trying to figure out how much we have to keep us going until Jan. If I went to a tax calc, and got the tax for gross salary for the year, then did the same with the 7 months she's actually worked and take one away from the other? Would that give an indication of how much we'd be owed or is that completely wrong?

    Thanks in advance


  • Closed Accounts Posts: 1,476 ✭✭✭2rkehij30qtza5


    Hi, I know there are a few threads on bonuses here but it still doesn't make sense to me. Can someone please explain.

    If you earn say, €50,000 per year and then you get a bonus of say €10,000 once a year...do you pay the higher rate of tax on this bonus because you pay the higher rate of tax on your salary?

    I have read some threads here that say you only get 40% of the bonus into your head. So, if someone is on the higher rate of tax, gets a €10k bonus...that means they get €4k into their hand and €6k goes to the taxman? I know you can put it into pensions and all that but if you didn't you are basically taxed 60% of your bonus??


  • Registered Users Posts: 193 ✭✭Ardeehey


    yup, at those numbers you pay the higher rate of Income tax plus PRSI plus USC...prob works out about 49% tax or something like that


  • Registered Users Posts: 250 ✭✭AlexisM


    The total marginal tax rate is 52% (unless you're self-employed when it's 55%) - so you'll pay 52% on your 10K - and receive 48% (€4,800).

    UNLESS, your employer takes the view that 10K is an all-in bonus amount that they are willing to pay, including employers PRSI - which would mean they will net off the 10.75% employers PRSI. That would make your effective overall taxrate 56.7% leaving you with 43.3% (€4,334).


  • Registered Users Posts: 11,205 ✭✭✭✭hmmm


    but if you didn't you are basically taxed 60% of your bonus??
    Welcome to the world of "de rich" according to certain political parties.

    Bonuses are simply income and are taxed as such.


  • Registered Users Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Hi, I know there are a few threads on bonuses here but it still doesn't make sense to me. Can someone please explain.

    If you earn say, €50,000 per year and then you get a bonus of say €10,000 once a year...do you pay the higher rate of tax on this bonus because you pay the higher rate of tax on your salary?

    I have read some threads here that say you only get 40% of the bonus into your head. So, if someone is on the higher rate of tax, gets a €10k bonus...that means they get €4k into their hand and €6k goes to the taxman? I know you can put it into pensions and all that but if you didn't you are basically taxed 60% of your bonus??

    41% tax 7% USC and 4% PRSI

    So 52% total tax

    It sucks but thats the way things work once you are on the higher rate.

    Someone I know recently asked for a few days extra holidays rather than a pay rise because the tax on the extra pay would be so high.


  • Registered Users Posts: 487 ✭✭stuba


    I submitted my Med 1 form for 2013 a couple of months ago, and received a payment of little over 20 Euro in my bank account today. I payed over 1000 Euro in medical expenses in 2013 and was expecting around 20% of this as relief. Does this sound right and did I misinterperate the relief?


  • Registered Users Posts: 4,079 ✭✭✭relax carry on


    stuba wrote: »
    I submitted my Med 1 form for 2013 a couple of months ago, and received a payment of little over 20 Euro in my bank account today. I payed over 1000 Euro in medical expenses in 2013 and was expecting around 20% of this as relief. Does this sound right and did I misinterperate the relief?

    The relief is granted at the standard rate (20%) Since it's a tax relief, it's dependant on how much tax you paid in the claim year. If you paid more than 20 euro Paye for the claim year, contact Revenue to see why more was not refunded if you cannot see the answer on your P21.


  • Registered Users Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    stuba wrote: »
    I submitted my Med 1 form for 2013 a couple of months ago, and received a payment of little over 20 Euro in my bank account today. I payed over 1000 Euro in medical expenses in 2013 and was expecting around 20% of this as relief. Does this sound right and did I misinterperate the relief?

    You should have gotten upto 20% of the amount spent assuming that you paid enough taxes. However when you request refund they do a full P21 so perhaps you underpaid tax at somepoint during the year.


  • Registered Users Posts: 36,167 ✭✭✭✭ED E


    Hi all,

    Slight discrepancy between my P21 and P60 I'd like to clear up.

    P60 for year end 31st Dec 2013:
    Tax Credit 3010
    P21 for year end 31st Dec 2013:
    1,650.00 Personal Tax Cr
    372.80 PAYE Tax Credit

    As Im a full time student my income is low enough, so are they only applying the necessary proportion of the credits I have for the year, or is the P60 incorrect?

    Filling in the Form12 now and it'd just be handy to know for this time next year as my income will hopefully be a bit higher.

    Thanks,
    ED-E


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  • Registered Users Posts: 6,893 ✭✭✭allthedoyles


    ED E wrote: »
    Hi all,

    Slight discrepancy between my P21 and P60 I'd like to clear up.

    P60 for year end 31st Dec 2013:
    Tax Credit 3010
    P21 for year end 31st Dec 2013:
    1,650.00 Personal Tax Cr
    372.80 PAYE Tax Credit

    As Im a full time student my income is low enough, so are they only applying the necessary proportion of the credits I have for the year, or is the P60 incorrect?

    Filling in the Form12 now and it'd just be handy to know for this time next year as my income will hopefully be a bit higher.

    Thanks,
    ED-E

    Theres a discrepancy of €100 above -

    The PAYE tax credit is normally reduced to balance your P21 .

    Could the paye figure be 272.80 by any chance ?


  • Registered Users Posts: 1,323 ✭✭✭brophs


    Hi,

    This might be a daft question, but in paying Preliminary Tax, can I reduce the payment due by the amount of the PSWT?

    By that I mean say I'm due to pay €10k in Preliminary Tax for 2014. I have just received an F45 for, say, €1k. Do I now reduce my declaration of Preliminary Tax to be paid to €9k or is it only taken account of in my Income Tax return for 2014? I presume the former but just wanted to confirm.

    Ta.


  • Registered Users Posts: 824 ✭✭✭magicmushroom


    Hi all

    I'm looking for some help in calculating a new salary
    I am useless with numbers and all things tax just go over my head! :confused:

    Basically I want to work out how much I will be deducted on a 34k salary and on a 32k salary.

    Am I right that I will be taxed the lower rate of 21% on the first €32,800 and then pay a higher rate of 41% on the rest?

    And what is the % for USC and PRSI?
    I get tax credits of 3300 so 275 per month.

    Would I be better off earning the 32,800 or the 34k due to the higher tax etc I will pay?

    All help appreciated thank you


  • Registered Users Posts: 59,610 ✭✭✭✭namenotavailablE


    Assuming you're not paying into a pension or VHI etc, not receiving any non-cash benefit in kind here are the figures:

    €32000= net per month of €2172
    €34000= net per month of €2266

    USC is at 7% on the excess over €16016 per year (2% on the first €10036, 4% on the next €5980) and PRSI is at 4%.

    I've uploaded an Excel spreadsheet calculator (see the link in my signature below or in the 'About me' section of my profile) which you can download for such queries.


  • Registered Users Posts: 67 ✭✭kim_possible


    Hi I wasnt sure if I should start a separate thread for this query.

    I am currently working and living in Dublin, paying tax etc on a salary of 50,000 euros.

    I am considering moving home to northern Ireland and commute to Dublin several times per week for work in my current role. Essentially a cross boarder worker.

    If I reside in Northern Ireland and work in Ireland, how will this change my contributions, can anyone clarify?
    TIA


  • Registered Users Posts: 325 ✭✭igorbiscan


    Hey all,
    Just wondering if I took an extra two-three weeks off in the year without pay,what would be the tax effect on a 35k p.a. wage.Thanks in advance.


  • Registered Users Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    igorbiscan wrote: »
    Hey all,
    Just wondering if I took an extra two-three weeks off in the year without pay,what would be the tax effect on a 35k p.a. wage.Thanks in advance.

    depends on your circumstances wrt to marriage assessment and the split of tax credits/bands


  • Registered Users Posts: 325 ✭✭igorbiscan


    depends on your circumstances wrt to marriage assessment and the split of tax credits/bands

    I'm not married,in long term relationship,have joint mortgage on a house.Don't know if that makes any diff.
    Thanks Ciaran.


  • Registered Users Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    Taking some unpaid leave will result in some form of refund. The unpaid leave will reduce the amount you pay at 41% over the course of the year.


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  • Registered Users Posts: 8 chelseaj


    Completely confused.. Sal is currently 33k paid weekly and paid door to door so accumulate a fair bit of overtime no less than 10hr per week..
    Put payslips seem all over the place - take last week I had done 13 hours in over time but came out with around same if I had done 10 two weeks ago.. and this week done 12 and came out Wi less than ever before


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