DIRT-free deposit accounts for over 65s

[padraig mac]

My wife and I are retired.


I am over 65 and since our joint income (pensions and deposit interest) is below €40,000 we are entitled to have interest on our deposit accounts paid without a deduction of DIRT.


However, we also have some Post Office Savings Bonds and Savings Certificates which generate tax-free interest.


Should the tax-free interest on our Savings Bonds and Certificates be taken into account in determining our income? If it is taken into account, it will push our income above the €40,000 threshold for a DIRT-free deposit account.


Any views. Many thanks in advance

 

[Ask the dog]

Padraig,

To my knowledge, any income derived from An Post savings a/c (Certs & Bonds) does not have to be declared to the Revenue. Therefore I would think that they do not have to be taken into account in determining your income.

I'm not saying that I know the definite answer here but I do know of another couples in the same situation as yourself and they are presuming that the interest from An Post savings are not used in calculating Gross income.
If you find out anything to the contrary, let me know.

 

[padraig mac]

Padraig,

To my knowledge, any income derived from An Post savings a/c (Certs & Bonds) does not have to be declared to the Revenue. Therefore I would think that they do not have to be taken into account in determining your income.

I'm not saying that I know the definite answer here but I do know of another couples in the same situation as yourself and they are presuming that the interest from An Post savings are not used in calculating Gross income.
If you find out anything to the contrary, let me know.

Many thanks.

I've just read the Prospectus for the latest issue of Savings Bonds. It states:

"Interest earned on Savings Bonds is exempt from Deposit Interest Retention Tax, Income Tax and Capital Gains Tax in Ireland and is not returnable as income to the Revenue Commissioners"

It seems therefore that interest from PO Bonds and Certificates is not taken into account when calculation income.