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Tax on large sum of overtime

  • 30-07-2019 11:44am
    #1
    Etnies
    Registered Users, Registered Users 2 Posts: 1,151 ✭✭✭


    Could someone clarify this for me as I've heard two different answers,

    I submitted OT for 2 months in work which brought my pay up considerably for that month, I was told that it doesn't matter if one month is really high as you are taxed Year to date, not per month?

    Is this correct as this is what I always thought. I'm being told by others that I would have gone into the higher tax bracket as my OT was so high even though my YTD hasn't even hit the 40% band


Comments

  • #2
    odyssey06
    Registered Users, Registered Users 2 Posts: 33,961 ✭✭✭✭odyssey06


    If it hasn't corrected itself by end of year, request a balancing statement from Revenue.
    If your total income in the year was less than higher rate band you will get a refund correction.

    "To follow knowledge like a sinking star..." (Tennyson's Ulysses)



  • #3
    Etnies
    Registered Users, Registered Users 2 Posts: 1,151 ✭✭✭Etnies


    odyssey06 wrote: »
    If it hasn't corrected itself by end of year, request a balancing statement from Revenue.
    If your total income in the year was less than higher rate band you will get a refund correction.

    Thanks for the reply,

    So I would infact get taxed at the higher rate for that months pay then? I thought they looked at the YTD and went by that regardless of what you earn in each month


  • #4
    odyssey06
    Registered Users, Registered Users 2 Posts: 33,961 ✭✭✭✭odyssey06


    Etnies wrote: »
    Thanks for the reply,

    So I would infact get taxed at the higher rate for that months pay then? I thought they looked at the YTD and went by that regardless of what you earn in each month

    It's possible you will be taxed at higher rate, then in 2 months time you may see a reduction in tax as a balancing. Or it may not happen until year end.

    For example, if someone is on 60k per year, they pay higher rate from January rather than in June when they hit the YTD limit.

    "To follow knowledge like a sinking star..." (Tennyson's Ulysses)



  • #5
    Etnies
    Registered Users, Registered Users 2 Posts: 1,151 ✭✭✭Etnies


    odyssey06 wrote: »
    It's possible you will be taxed at higher rate, then in 2 months time you may see a reduction in tax as a balancing. Or it may not happen until year end.

    For example, if someone is on 60k per year, they pay higher rate from January rather than in June when they hit the YTD limit.

    Ahh ok, I get it now, thanks for that


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