Why does some pensioners pay tax on the social welfare income ?
Why does some pensioners pay tax on their social welfare income even though their other income is very low ?
A person is exempt from Income Tax if they are 65 years of age or over and their annual total income is less than €18,000 if single, or €36,000 if married or in a civil partnership.
In some cases, where the total income exceeds these amounts the combination of tax credits that a person is entitled to will be sufficient to cover any tax due.
However, in other cases, the value of their credits will not be sufficient and tax will be deducted by their pension provider or employer.
Any queries give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie