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Income Tax exemption query?

  • 09-06-2025 02:23PM
    #1
    Planet X
    Moderators, Recreation & Hobbies Moderators Posts: 4,205 Mod ✭✭✭✭


    Couple over 65, receiving Contributory State pension…..very shortly.

    Question. We/ I have a private pension which we’re receiving monthly payments. If the total we receive per annum exceeds €36,000 by a “ few” grand, is there an easy way to pay tax on this as opposed to going through my accountant? Is there a form we can fill out? Both retired. Only incomes are two State pensions and private pension.

    Cheers.



Comments

  • #2
    Geuze
    Registered Users, Registered Users 2 Posts: 14,855 ✭✭✭✭Geuze


    There is something called Marginal relief for people over 65 who earn a bit over the 18k/36k exemption limits.

    However, increases to the two normal tax credits over the years mean that a married couple can earn up to 44k without tax, meaning the older exemption limits are now less relevant.

    Married tax credit = 4,000

    PAYE tax credit = 2,000 + 2,000

    Age tax credit = 245 + 245

    Total = possibly 8,490

    This means possibly no income tax until 44k approx



  • #3
    Gooser14
    Registered Users, Registered Users 2 Posts: 1,857 ✭✭✭Gooser14


    Are you sure they will be entitled to a PAYE Tax Credit (now called Employee Tax Credit) of €2000 + €2000? The Revenue examples I have looked at show a single amount of €2000 for a jointly assessed couple.

    The reason I ask is that we are in a similar situation as the OP in that we will exceed the €36000 tax exemption limit this year.

    (I hope you're right & I'm wrong).



  • #4
    Geuze
    Registered Users, Registered Users 2 Posts: 14,855 ✭✭✭✭Geuze


    My parents are retired, with mainly pension incomes, say about 45k, plus other small incomes, about 5k.

    They both get the PAYE tax credit.

    However, the parent with the lower income gets just enough PAYE tax credit to wipe out their tax liability.

    They don't get the full PAYE tax credit.



  • #5
    Xander10
    Registered Users, Registered Users 2 Posts: 6,093 ✭✭✭Xander10


    https://www.boards.ie/discussion/2058415623/income-tax-exemption-query

    Revenue will usually decrease the tax credits to indirectly tax the social welfare income through the private pension. It means paying more tax on the private pension but can fully or partly wipe out an end of year liability.

    MyAccount online or a call to the PAYE section should be able to sort.

    A return or accountant probably not needed



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