Tax Calculation Thread

* PRSI and USC are both charged on gross earnings minus any 'salary sacrifice' deductions (e.g. bike to work or travel saver tickets). PRSI is generally 4% for most employees. USC is at various rates on various bands of income.

* PAYE on gross earnings minus any 'salary sacrifice' deductions and any pension or income protection (PHI) deductions.

You would wait till next year and file a form 12 for 2018. There are two ways you can declare the income you could declare it as a trade if there were expenses related to it you would do it this way and pay the tax on the profit or if there were no expenses related to it then you would enter it in fees, commissions etc.

Entering it as a trade on a form 12 the profit would need to be 5,000 or less if greater will need to register as a tax assessable person and file a form 11.

My job is meant to have a flat rate expense of 520 or so...

I was only credited with 113 or something like that.

Is this a very basic mistake or something I can fix with a phone call I wonder

As far as I know you'll be taxed as follows, but I'm open to correction:

44,300 @ 20%
10,000 @ 20%
7,700 @ 40%

Hello ,
I am a single man 35 currently working in two jobs ,first job in retail with annual income around 18000 euro paid montlhy and second job as a firefighter with estimated income 18000 -20000 euro paid quarterly.Both jobs will give me very similar income .Because I started work as firefighter in middle 2019 I have been taxed very hard . I want setup my tax credit and rate band on revenue site for 2020 so I kindly ask here for advice .Thanks Lukasz

Hello, I have a couple of questions in regards to tax due on dividends and CGT on US stocks. I received about 400$ in dividends from these shares this year, which incurred 15% tax on source from US side. My only other income from this year was from online poker, this is not taxable as it is treated as gambling winnings. Do I owe further tax on these dividends to revenue? My understanding is I don't as I fall below the minimum taxable income, but would like to double check. If I don't, do I still have to file and declare the income?

Also in regards to CGT, I made disposals for the year which fall below the 1270 euro annual allowance. Do I still have to report this to revenue even though I have no tax on it due?

Appreciate any responses, thanks.

DesperateDan wrote: »

Lads, I have some real dumb questions here. I don't understand this myAccount business at all. Sorry but I don't understand why it's so full of detail yet absolutely nothing is explained.

Wtf is a statement of liability vs an income tax return? Why is there no income tax return for 2019? Why can I "request" a statement of liability for 2018 but only "edit" it for 2019? If I choose 2018 > Edit Income Tax Return > Tax Credits and Reliefs I have 3 check boxes to "confirm". What actually happens when I confirm these, and why would I even need to do it?

This explains a lot of what you asked
https://www.revenue.ie/en/jobs-and-pensions/end-of-year-process/statement-of-liability.aspx

2019 is different to other years as it is the first year under PAYE modernisation.

Up to 2018 you could request a statement of liability (p21 in old terminology) in 2 ways. Either (A) request one and revenue would issue it based on what documentation they had for you or (B) complete tax return with any additional items you felt were relevant which revenue mightn’t know about unless you told them, e.g. medical exp.

For 2019 the only way to get the sol is to complete a tax return. Your preliminary result for the year might show a refund but if you want it you have to complete a return. That way you are declaring the income and claims to be a complete and true reflection of the year.

You need to confirm the items you showed so revenue know that you agree that you’re entitled to them. If anything is there that shouldn’t be have the option to edit or remove it ( some things can’t be removed as they are statutory items such as your personal credit ).

Once the return s submitted the sol will issue and any under or overpayment will be recorded.

DesperateDan wrote: »

Ok thank you very much for that, so by clicking confirm and completing the 2018 tax return it tells the revenue that all of these things need to be accounted for, and they will just calculate themselves if I need a refund basically? For example I would have thought I was due €200 for the over €1000 medical insurance I paid in 2018 because apparently that is refunded @ 20% (fingers crossed!).

I also have a crazy situation right now where I thought I was due at least €700 but they are telling me I've been over-taxed throughout the year because I under paid tax during a previous year which I have no idea how that happened as a regular PAYE employee so have to go and dig through all previous years as well.

Unless the medical insurance credit was just added by you; then you've already received the benefit of it through the year so no further refund could be due based on that relief. Also you may need a refund but unless you are claiming and additional tax credit/relief; have been over taxed due to switching multiple jobs through the year or were emergency taxed; then normally no refund/underpayment should occur as you would have been taxed correctly through the year by your employer.

Just looking for a bit of help with my 2019 tax. I was on maternity leave from July-December. I received the 245 a week from maternity pay and my employer topped up my wages to make up my normal salary. What’s confusing me is there seems to be two figures for my gross salary 34363 and 36721 I assume this has something to do with the maternity pay. It states my income for tax is 31,619 is this the figure I should be using to work out how much tax I should have paid?

Based on the data you provided, here's my spreadsheet's calculations (month 1 is with overtime, month 2 is without):



You can get the simple average for each month by dividing the net pay values by the number of hours worked in the month.

The total deductions from your overtime depend on whether your earnings are over the €35300 standard-rate band- once you're under that, the typical deductions will be 20% PAYE + 4% PRSI + 4.5% USC. However, once you're over the €35,300, the PAYE rate goes to 40% on the excess, PRSI stays at 4% and the USC rate stays at 4.5% (unless you earn over €70K)

Hi,

I am married and have one child (2 years old now). My wife and I are on Joint Assessment.
I've been trying to work out if we'll get anything back for 2019. I submitted the return on Jan 1st but still waiting for my SOL. It's been such a long wait, so, I want to now try and calculate it myself to see if we're owed anything back. Due to our situation in 2019, I'm not finding it to be straightforward, so would appreciate any guidance on how to do this.

Me -
I was employed until the end of August 2019, when I was made redundant. My wife was unemployed when I was working, so I had the following.
€44,300 SRCOP
€3,300 Personal tax credit
€1,500 Home carer's tax credit
€1,650 Employee Tax Credit

Due to the redundancy, I received a lump sum payment that was made up of the tax-free statutory redundancy payment and an ex-gratia payment which was also tax-free as it was well within the exemption amount.

I was on Jobseeker's Benefit from September to December. I claimed Unemployment repayment in December and got a refund due until 5th December.


My wife -
She was unemployed most of 2019 but started working in August, just 2 weeks before I finished up. When unemployed, she was not on any pay-related benefit (ineligible).

I didn't transfer the unused rate band and credits to her since it seemed simpler to sort it out at the start of 2020 via a Tax Return. So, in 2019, she had the following.
€0 SRCOP
€1,650 Employee Tax Credit


--
All previous years, I was the only one employed, so I could simply use an online calculator with the status "Married, 1 income". But in 2019, when one of us was employed, the other was not (apart from the 2-week overlap as stated above). So I'm not sure how to even begin the calculation, never mind factoring in other details like the Unemployment refund I have already received. Any pointers would be appreciated.

Would it be beneficial for a married couple who are assessed separately to be jointly assessed. One is on €63k and the other is usually on €80k but is on 50% of this for Apr and May (at least)?

irishfemme wrote: »

I am trying to understand my tax ...

My tax credit is a total of €4950, it was reduced by 20% of an illness benefit received. Ie tax credit is now €4000
At the end of the tax year, claiming my statement of liability, my illness benefit is added to my total income & taxed again at 20%.
The question is, I noticed my tax credit is still reduced on my statement ��? So, am paying in form of tax credit reduction & also in tax, against the same tax credit. Does this sound right? Or is the tax credit reduced by something else unspecified?
Let assume my total income, including illness benefit is €20,000, taxed at 20% , that's €4000, I should have the €4950 tax credit, but instead it says, tax credit €4000, tax calculation €4000, no overpayment.
Shouldn't revenue owe me the €950 unused tax credit?

If your Tax credits are €4,950 and your taxable income is €20,000 which needs €4,000 in tax credits to cover it ( at 20% ) then you have no tax to pay. The extra €950 isn't due to you. It's not tax you've actually paid.

Think of it this way using smaller earnings. A student with a part-time job earns €5,000 pa. The tax due on that would be €1,000. Normal tax credits single person are €3,300 so that covers any tax due. They don't get the other €2,300 refunded to them. However if they earned up to €16,500 the tax due would be €3,300 and the tax credit covers up to that so no tax due.


You could, with tax credits of €4,950 potentially earn up to €24,750 before you'd have tax kicking in.