# Calculating Income Tax - sole trader



## Scissor (13 Jul 2010)

HI,

I need help calculating income tax.  For example if I earned 20000 and my expenses were 7000. Do I pay tax on 13000? so would that be 20% of 13,000 minus my tax credits.  PLease can someone explain exactly how this is calculated? and give examples.

thanks a lot.


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## papervalue (14 Jul 2010)

Scissor said:


> HI,
> 
> I need help calculating income tax. For example if I earned 20000 and my expenses were 7000. Do I pay tax on 13000? so would that be 20% of 13,000 minus my tax credits. PLease can someone explain exactly how this is calculated? and give examples.
> 
> thanks a lot.


 
you pay tax on 13k *20%= 2600 less single credit/married credit to give tax due(only get a refund of tax if tax paid, no refund of excess credits)

If low enough no Income levy/Health levy and maybe min prsi or higher(13k*3%=390) depen on circumstances. An medical card would make a difference to some computations
http://www.revenue.ie/en/tax/it/leaflets/it1.html#section1

link above to tax rates/ prsi rates


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