Time on illness benefit often results in tax refunds. Lower income during illness means your annual tax credits may not be fully used.
🏥 Illness Benefit Tax Facts
- Illness benefit: Taxable income
- Lower than salary: Creates unused credits
- PRSI: Not payable on benefit
- Refund likely: If you paid tax before illness
Why Refunds Are Common
Your tax credits are calculated for your normal salary. When you're on illness benefit (which is lower), you may not use all your credits — meaning you overpaid earlier in the year.
Been on Illness Benefit? Check Your Tax
We'll review your tax for years you were unwell.
Start My Claim →No refund, no fee
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Filed under:PAYE Tax Refunds