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Tax on pension

  • 04-04-2024 10:13pm
    #1
    Recliner
    Registered Users, Registered Users 2 Posts: 940 ✭✭✭


    Person getting first payment of contributory state pension. Was expecting €277.30 but only got €237. This was for a full week. Is the pension taxable? €40 a week tax seems like a lot.

    I have no clue.



Comments

  • #2
    endacl
    Registered Users, Registered Users 2 Posts: 22,409 ✭✭✭✭endacl


    Have you made full contributions?



  • #3
    Buddy Bubs
    Registered Users, Registered Users 2 Posts: 4,469 ✭✭✭Buddy Bubs


    All income is taxable, including state pension. It just depends on the individuals income levels, tax credits etc

    Is there other income involved? Is it definitely tax or is amount received just lower than expected?



  • #4
    gipi
    Registered Users, Registered Users 2 Posts: 3,140 ✭✭✭gipi


    Tax wouldn't be deducted at source like that. Either the person didn't qualify for full rate (as endacl said) or there's a deduction being made for another reason.

    What did their pension award letter say?



  • #5
    Recliner
    Registered Users, Registered Users 2 Posts: 940 ✭✭✭Recliner


    The letter they got said they were entitled to the full €277. They have the required contributions. They are due to retire at the weekend, so tomorrow is their last full day of employment. They do plan to work 19 hrs a week from next week, but were told by social welfare that they could do this without their pension being affected.

    They were told the first payment would be made tomorrow. Obviously comes in a few hours early into the back.



  • #6
    gipi
    Registered Users, Registered Users 2 Posts: 3,140 ✭✭✭gipi


    Payment is made from the date a person turns 66. If their birthday is at or after the weekend, they might not have received a full week first time around.

    No harm giving the Department a call to confirm what happened.

    https://www.gov.ie/en/publication/4f38a6-operational-guidelines-state-pension-contributory/#part-3-procedures-following-award



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  • #7
    johnayo
    Registered Users, Registered Users 2 Posts: 1,718 ✭✭✭johnayo


    https://www.boards.ie/discussion/comment/121977523#Comment_121977523

    The Social Welfare advice was that working would not affect them getting the full pension amount. It depends what the combined earnings are, as to whether they paye tax or not. From my experience, it took a few weeks for it all to settle down. My overpayment of tax was eventually refunded.



  • #8
    coylemj
    Registered Users, Registered Users 2 Posts: 25,620 ✭✭✭✭coylemj


    https://www.boards.ie/discussion/comment/121977523#Comment_121977523

    It's nothing to do with tax. The clue is in the fraction of the full amount which they were paid. They got 6/7 of the full pension. I think the pension week starts on Friday so if your friend's 66th birthday is on Saturday, that would explain the shortfall, they're only entitled to six days of pension for the first weekly payment.

    Post edited by coylemj on


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