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Pension Income & Tax Credits

  • 28-11-2015 07:45PM
    #1
    Boscod
    Registered Users, Registered Users 2 Posts: 103 ✭✭


    I currently have non-earned income (rental), on which I pay tax and get the Personal tax credit, but not the PAYE tax credit. If I was to start drawing an income from my pension funds (accumulated with PAYE income) would that qualify as PAYE income and allow me to claim the PAYE tax credit?
    I'm under 65 years old.


Comments

  • #2
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,595 ✭✭✭✭CIARAN_BOYLE


    Boscod wrote: »
    I currently have non-earned income (rental), on which I pay tax and get the Personal tax credit, but not the PAYE tax credit. If I was to start drawing an income from my pension funds (accumulated with PAYE income) would that qualify as PAYE income and allow me to claim the PAYE tax credit?
    I'm under 65 years old.

    Only in so far as you receive income ie if you draw 5,000 from your pension you will get 1,000 of the PAYE credit.


  • #3
    DmanDmythDledge
    Registered Users, Registered Users 2 Posts: 1,054 ✭✭✭DmanDmythDledge


    I think they are asking would they get the €1,650 PAYE tax credit, which I believe they would. PAYE is charged at source on income withdrawn from a pension fund so you would be entitled to the additional credit.

    This approach would be beneficial if you can stay within the 20% threshold of tax with the additional income.


  • #4
    Boscod
    Registered Users, Registered Users 2 Posts: 103 ✭✭Boscod


    Thanks Dman, that's where I was coming from.


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