# compensation from high court: tax and social welfare implications?



## lorr01 (22 Mar 2007)

hi,

does anybody no that if you recieve compensation from a car accident in the high court, is any of it taken as tax or what is the story with it please and thanks, and also do you loose your disability benifit and medical card also.

thanks

lorr


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## ClubMan (22 Mar 2007)

*Re: compensation from high court*

Is this _Revenue _booklet of any use?

[broken link removed]

Additional means could impact means tested welfare and other payments but _Disability Benefit _(as opposed to similar *Allowances*) is _PRSI _linked and not means tested and your medical card may or may not be means tested depending on how you qualify for it.

If in doubt get independent, professional advice. Check on the SW website and/or Ask your local  for advice on you statutory entitlements and how any compensation payment may impact them.


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## bond-007 (22 Mar 2007)

*Re: compensation from high court*

Damage awards from the courts are not subject to income tax or PRSI.


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## Ravima (22 Mar 2007)

*Re: compensation from high court*

damages are not taxable, but income from them is.


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## lorr01 (26 Mar 2007)

*Re: compensation from high court*



Ravima said:


> damages are not taxable, but income from them is.


hi

could you elaborate please what you mean by "income from them is please.


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## lorr01 (26 Mar 2007)

*Re: compensation from high court*



bond-007 said:


> Damage awards from the courts are not subject to income tax or PRSI.


hi

thanks a million for getting back to me,


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## lorr01 (26 Mar 2007)

*Re: compensation from high court*



ClubMan said:


> Is this _Revenue _booklet of any use?
> 
> [broken link removed]
> 
> ...


hi

thanks a million for getting back to me.. i will take a look at the book you send me.and i didnt see anything in the citizens info centre that would answer my question..

thanks though

lorr


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## ClubMan (26 Mar 2007)

*Re: compensation from high court*



lorr01 said:


> i didnt see anything in the citizens info centre that would answer my question..


Did you ask the people in the office? They're there to help you!


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## Ravima (26 Mar 2007)

*Re: compensation from high court*

income from them, being income received from damages whilst invested by the receipient. This could be, amongst others, bank interest, dividends from shares, rental income from property bought out of the proceeds etc.


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## CMCR (29 Mar 2007)

The medical card income guidelines do not specifically deal with compensation payments. I would imagine (but I may be wrong on this) that the compensation payment would probably be assessed in the same way as savings: 

Capital                 Weekly means assessed
First 20,000 euro,  Nil
Next 10,000 euro,  1 euro per 1,000 euro
Next 10,000 euro,  2 euro per 1,000 euro
Balance (e.g. capital in excess of 40,000) 4 euro per 1,000 euro

The easiest way to sort this out once and for all, is to ring the Medical Card Section of your Local Health Office. You don't have to give your name, just say you are making a general inquiry.


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## Welfarite (29 Mar 2007)

Yep, it will be treated the same as savings for means purposes, but as Clebman says, the reason for issue of the medical card will aslo be a factor in losing it or not (i.e medical needs)


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## lorr01 (2 Apr 2007)

Welfarite said:


> Yep, it will be treated the same as savings for means purposes, but as Clebman says, the reason for issue of the medical card will aslo be a factor in losing it or not (i.e medical needs)


thank you


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## lorr01 (2 Apr 2007)

CMCR said:


> The medical card income guidelines do not specifically deal with compensation payments. I would imagine (but I may be wrong on this) that the compensation payment would probably be assessed in the same way as savings:
> 
> Capital Weekly means assessed
> First 20,000 euro, Nil
> ...


thanks for your help


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## lorr01 (2 Apr 2007)

*Re: compensation from high court*



ClubMan said:


> Did you ask the people in the office? They're there to help you!


no i wasnt in the  office i went online but will pop in thank you


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## ClubMan (2 Apr 2007)

You can always ring 1890 777 121.


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