Query re: relief for tax saver travel passes

[queenlex]

Hi guys,

Another quick one. I was just wondering if you were to earn enough money to barely get into the 41% tax paying bracket, e.g. say you earned 37,000pa would you get 41% relief on a bus pass for a year for whatever it cost, say €500?

Many thanks in advance and keep up the good work posters!

 

[MugsGame]

The cost of the ticket is deducted from your salary before tax is applied, reducing your taxable salary. If only €400 of your salary is currently taxed at 41%, you'd only get partial relief at 41% when deducting a ticket cost of €500. At least in that situation you are well under the annual PRSI threshold, so you will also get further PRSI / health levy relief (probably 6%, depending on your PRSI class.).

 

[Towger]

You should also take into account that travel passes etc are to be deducted after the 'Emergency' Levy is applied.

 

[MugsGame]

Yes, I was going to mention that but decided not to in case it would confuse things. The levy doesn't really affect deciding to avail / not avail of the travel pass, since you can't avoid it either way (though I suspect the levies are not easily implementable as first conceived and may actually be eligible for some reliefs.).