Tax credits for child first job

maggie magoo

Hi, I'm just trying to set my child up on MyAccount with their new (first) job. At the moment they get a small pension (due to death of other parent). Am I right in understanding that this pension is not taxable while they are still in full time education? Currently the tax credits are allocated to the pension income but if that income is not taxable anyway, should I transfer the 2 full tax credits to the new job that was started? Thanks in advance for any input/advice!

R0SSM0RE

I would say the pension is taxable once its a source of income it doesnt matter that the child is in full time education of not but without knowing the details of the pension I cannot say for sure. I would leave enough credits and cut off point to cover the pension and transfer the balance to the new job.

maggie magoo

Thanks for your reply. It's a "spouses/children's" pension - I get taxed on mine but I'm pretty certain that the children's one isn't taxable.

R0SSM0RE

Ya under 21 the benefits don't appear to be taxable in that case you could transfer all the credits and cut off point just remember to transfer the appropriate amount back before they turn 21 to avoid a tax liability.

maggie magoo

https://www.boards.ie/discussion/comment/119219895#Comment_119219895

Great, thanks very much. That's what I was thinking. Just trying to make sure they get paid ok and not taxed more than they should be! :)

maggie magoo

https://www.boards.ie/discussion/comment/119219895#Comment_119219895

i got the credits transferred over thanks. Just wondering if you’d know if he should be taxed on a week 1 or cumulative way. Just wondering what the best way to utilise the credits as he’s only getting min wage for U18’s, 7.35 so obviously want to avoid him getting taxed or should he just claim back after the tax year assuming he’s still under the 3,416 tax credits. Would he need to speak to employer or do through my account? Thanks 🙏

macvin

https://www.boards.ie/discussion/comment/119247378#Comment_119247378

It should be cumulative. Even if he pays some tax for a couple of weeks, it automatically gets refunded through the payroll system. Rarely is there a need to reclaim at end of year

maggie magoo

https://www.boards.ie/discussion/comment/119248629#Comment_119248629

Ah brilliant, thanks very much, I appreciate your response!