USC on Income below Exemption Limits

Happy Monday

My parents total income is less than the exemption limit of EUR36,000.

EUR24,000 of this EUR30,000 are state pension receipts.

As a result, they have been de-registered from income tax for the couple of years.

This is fine as no income tax is payable.

However, is USC payable and if so how much and how should this be paid if they are no longer in the income tax net?

They are over 70 and medical card holders.

All help is appreciated.

relax carry on

Happy Monday wrote: »

My parents total income is less than the exemption limit of EUR36,000.

EUR24,000 of this EUR30,000 are state pension receipts.

As a result, they have been de-registered from income tax for the couple of years.

This is fine as no income tax is payable.

However, is USC payable and if so how much and how should this be paid if they are no longer in the income tax net?

They are over 70 and medical card holders.

All help is appreciated.

Answers here.

http://www.revenue.ie/en/tax/usc/index.html

Happy Monday

relax carry on wrote: »

Answers here.

http://www.revenue.ie/en/tax/usc/index.html

I don't understand that to be honest.

Please advise.

barneystinson

Happy Monday wrote: »

I don't understand that to be honest.

Please advise.

Did you read it? It specifies exempt categories of income - payments by social welfare is one of them.

So your parents' income for USC purposes (as distinct from income tax) ignores the 24k of DSP payments and is only 6k.

Now revisit the exemption categories again. People whose income is less than 10,036 are exempt. So they're exempt.

Happy (Mon)days...

namenotavailablE

barneystinson wrote: »

People whose income is less than 10,036 are exempt. So they're exempt.

Happy (Mon)days...

The current exemption is €12,012...even happier (Mon)days

Happy Monday

namenotavailabl wrote: »

The current exemption is €12,012...even happier (Mon)days

Many thanks for the response.

Does this exemption of EUR12,012 apply for one person or can it be applied to two people.

Would this mean that non State Pension monies would have to be EUR24,024 for both my parents combined for USC to become payable?

This is the principle for Income Tax exemption. EUR18,000 per individual or EUR36,000 for a married couple together.

barneystinson

Happy Monday wrote: »

Many thanks for the response.

Does this exemption of EUR12,012 apply for one person or can it be applied to two people.

Would this mean that non State Pension monies would have to be EUR24,024 for both my parents combined for USC to become payable?

This is the principle for Income Tax exemption. EUR18,000 per individual or EUR36,000 for a married couple together.

The USC is a slightly different animal, it is calculated per individual.