Working for Work : Chapter 5 : Income Tax & Social Insurance

Tax and Social Welfare

Many social welfare payments are treated as taxable income. This means that if you, or your spouse/partner, earn any extra income your social welfare payment will use up either all, or some, of your tax credits.

 

The main social welfare payments that are taxable are: -

• Jobseeker's Benefit -
• One Parent Family Payment -
• Illness Benefit -
• Invalidity Pension -
• Blind Pension -
• Deserted Wife's Benefit -
• State Pension Contributory/ Non-Contributory -
• State Pension (Transition) -
• Guardian's Payment Contributory/ Non-Contributory -
• Carer's Allowance -
• Widow / Widowers Contributory/ Non-Contributory -
• Injury Benefit

 

i If you are claiming a taxable social welfare payment (see page 122) you must notify the tax office of any additional income either you or your partner/spouse have from earnings or other sources. The tax office will 'code-in' details of your social welfare payment and apply it to the tax charged on your other income. Any taxes due are not deducted from the social welfare payment; it is taken from your other income.

 

i If your only income is a social welfare payment, you will not pay tax.

Certain payments from the Department of Social Protection are not treated as taxable income.

The main social welfare payments that are not taxable are: -

• Jobseeker's Allowance / Farm Assist
• Family Income Supplement
• Back to Work Allowance
• Maternity Benefit
• Child Benefit
• HSE Payments
• Disability Allowance
• Supplementary Welfare Allowance
• Qualified Child increases payable with Jobseeker's Benefit and Illness Benefit

Last Updated: 01/09/2011 ^ back to top