Page 199 - Active Retirement Ireland 2015_
P. 199
Allowances &
e ntit l e m e nts
TAX CREDITS
Income tax applies to almost all income. People aged
65 and over are subject to the same general tax rules
as everyone else but they do get tax exemption limits
below which they pay no tax and some extra tax
credits. People aged 60 and over can claim additional
tax relief for health insurance.
Annual exemption limits for people aged 65
and over
Status 2014
Single or widowed or €18,000
surviving civil partner
Married or in a civil €36,000
partnership
First two children €575 each
Subsequent children €830 each
If you expect that your income for the year will be
less than these limits, you should contact Revenue
and they will issue a revised determination of tax
credits to you. If your income is not much above these
amounts, you may get what is called “marginal relief”.
That means that you do not go back into the normal
tax system - instead you pay tax at a rate of 40%
on the amount by which your income exceeds your
relevant exemption.
The point at which marginal relief ceases to be of
benefit varies with your family circumstances and the
tax credits to which you are entitled.
People aged 65 and over are subject to the same general tax
rules as everyone else but they do get tax exemption limits
below which they pay no tax and some extra tax credits.
Active Retirement Ireland 197
e ntit l e m e nts
TAX CREDITS
Income tax applies to almost all income. People aged
65 and over are subject to the same general tax rules
as everyone else but they do get tax exemption limits
below which they pay no tax and some extra tax
credits. People aged 60 and over can claim additional
tax relief for health insurance.
Annual exemption limits for people aged 65
and over
Status 2014
Single or widowed or €18,000
surviving civil partner
Married or in a civil €36,000
partnership
First two children €575 each
Subsequent children €830 each
If you expect that your income for the year will be
less than these limits, you should contact Revenue
and they will issue a revised determination of tax
credits to you. If your income is not much above these
amounts, you may get what is called “marginal relief”.
That means that you do not go back into the normal
tax system - instead you pay tax at a rate of 40%
on the amount by which your income exceeds your
relevant exemption.
The point at which marginal relief ceases to be of
benefit varies with your family circumstances and the
tax credits to which you are entitled.
People aged 65 and over are subject to the same general tax
rules as everyone else but they do get tax exemption limits
below which they pay no tax and some extra tax credits.
Active Retirement Ireland 197
