Should benefits be taxed?

Marsupial · Monday at 10:10 PM

faketales said:
Perhaps I’m confused. My tax credits were up to date. Then 5 weeks of leave, no tax. Then back to work with revised cut off and tax credits to claw back 40% of benefits.

5 weeks of paid leave, no tax; or 5 weeks of unpaid leave, no tax ; or 5 weeks of maternity leave, no tax? Each would have a different outcome.

faketales · Tuesday at 12:34 AM

Marsupial said:
5 weeks of paid leave, no tax; or 5 weeks of unpaid leave, no tax ; or 5 weeks of maternity leave, no tax? Each would have a different outcome.

Parents leave. No pay from my employer. Just state benefit.

misemoi · Tuesday at 7:42 AM

Once you have sufficient income to utilise your cut off and tax credits, then all income above these balances are taxed at your marginal rate. So yes, you get net of about half the parents leave benefit. As you get net of half your annual.bonus etc. Same principle. Enjoy the 18 years of tax free child benefit though, it's far in excess of any tax you paid on parents leave. And I'm not certain if they are automatically applied while in recipt of rhe benefit, but make sure you got PRSI credits for the period.

ClubMan · Tuesday at 7:48 AM

misemoi said:
And I'm not certain if they are automatically applied while in recipt of rhe benefit, but make sure you got PRSI credits for the period.

They should be, but no harm in double checking that they appear on one's PRSI contribution record on myWelfare eventually (e.g. next year when it has been updated for this year).

Parent's Benefit

Parent’s Benefit is a payment for people who are on parent’s leave from work and covered by social insurance (PRSI). Each parent gets 9 weeks payment in the first 2 years after the child’s birth or adoption.

www.citizensinformation.ie

You get credited contributions or credits automatically when you are getting Parent’s Benefit.

Purple · Tuesday at 2:05 PM