Income tax underpayment

[jpmackey]

Hi folks,

I just got my statement of liability and I owe Revenue a few hundred. In the document it states that my tax credits will be reduced over the next 4 years to compensate for the difference.

Question is; if I make an income tax payment through myaccount online, will that automatically be marked against my outstanding balance and therefore my tax credits will not be affected going forward?

Reason I would like to have the same tax credits in future is because I am a little OCD about how my salary is divided up and weekly spending is budgeted.

Thanks

 

[Corola]

Yes, you can pay the outstanding amount and keep your tax credits.

What to do if you have underpaid Income Tax or USC

This page outlines what to do if you have underpaid Income Tax or Universal Social Charge

www.revenue.ie

Example 2
Mark completed his Income Tax Return for 2021 in September 2022. This has resulted in an underpayment of tax of €200. This will be collected by reducing Mark’s tax credits over four years.

Mark would prefer to pay the €200 in full. He can make this payment using myAccount. This means that Mark will have the full credits he is entitled to at the beginning of 2023.

 

[jpmackey]

Thanks, Corola.