# Does DIRT Exempt Interest Count as Taxable Income



## roker (13 Jun 2012)

As a pensioner I am exempt from DIRT. Does my interest still count as taxable earnings and should I add it to my total income?


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## Gervan (13 Jun 2012)

You are only exempt from Dirt if you are over 65 AND your total income is below the threshold.
The gross income is counted.


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## roker (13 Jun 2012)

I am over 65, but what is the point of getting exemption if they still tax a person on the interest as part of their income?


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## Black Sheep (13 Jun 2012)

If you are tax exempt ie.( gross income including interest on savings below 36,000 married or 18,000 single) you need to inform your bank (or whoever is paying interest) of this exemption so that they will pay the interest gross. 

A form DE1 should be completed for each financial institution in which you have savings with interest

The fact is that the bank are unaware that you are tax exempt unless you tell them.


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## mandelbrot (14 Jun 2012)

roker said:


> I am over 65, but what is the point of getting exemption if they still tax a person on the interest as part of their income?



Because if you get the DIRT exemption it's because your total income, including the interest, will be below the exemption threshold.

If for example you had the DIRT exemption in a year, but for some reason your total income increased above the exemption threshold, then you would become (marginally) taxable.


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## roker (14 Jun 2012)

Thanks all. I understand, if my earnings or the interest brings me over €36,000 I am taxed, so there is no point in applying to the bank for exemption.


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## roker (20 Jun 2012)

One other small detail, is my heating allowance and Christmas bonus taken as taxable income?


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## Black Sheep (20 Jun 2012)

*Social Welfare Payments which are not Liable for Tax*



Household Benefits
Fuel Allowance
Statutory Redundancy Payments
Not sure what Christmas bonus you receive
State Pension Christmas bonus was abolished a couple of years ago


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## roker (21 Jun 2012)

Thanks Black sheep. We receive a UK Christmas bonus which is only €23 year. Not enough to worry about


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## southbound (22 Jun 2012)

Roker,

As the previous poster said, marginal relief may apply when total income exceeds the 36,000 limit.  If your Irish deposit interest is significant it is worth filing an annual return to Revenue in order to get a DIRT rebate.

On a related point, can anyone advise on the proper section of the 2011 Form 11 to enter *An Post interest* that is paid gross?  I contacted Revenue but the three people I spoke to appear to be guessing!

Under the Irish deposit interest heading there is a section for 
Gross interest received *where DIRT was not deducted* by virtue of S. 256(1A) or 256(1B)

I understand this may relate to interest (e.g. any bank accounts) for which a person may have been granted the DIRT exemption.


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## roker (24 Jul 2012)

I just received my 2011 Balancing statement and it looks like they have taken my €640 heating allowance as taxable income. As I am still under the taxable allowance this does not matter too much. Should I correct them?


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## Black Sheep (26 Jul 2012)

Something is not right here.
Fuel allowance is not taxable.

When you say heating allowance do you mean "The National Fuel Allowance"


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## roker (26 Jul 2012)

Yes National Fuel Allowance,  as the statement is not itemised fully, it is difficult to see where else they got this amount from.


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## Black Sheep (31 Jul 2012)

Would this 640 be interest earned on savings


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