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You then effectively pay tax on both sources of income, but it is collected from the part-time employment. For higher incomes, the standard rate cut-off point will also be reduced. The technical term for this is ‘coding in’ of credits. The same arrangement applies if you have income from an occupational pension and a State pension.
What if my social welfare income wasn’t ‘coded in’?
If your social welfare payment was not ‘coded in’ during the year, you may have an underpayment of tax at the end of the year. Any underpayment is generally collected by reducing your tax credits over future years but can sometimes be requested to be repaid in a lump sum.
If your other source of income is not taxed through the PAYE system, for example, if you are self-employed, have an occupational pension from abroad or have investment income, then you are classed as a self-employed person and your tax is payable annually by 31 October each year.
The actual rate of tax you will pay on taxable social welfare payments will depend on your income level, personal circumstances and the tax reliefs and tax credits you are claiming.
There can sometimes be errors in the taxation of social welfare payments, which can cause both under and overpayments of tax. This is generally caused by the delay between DEASP notifying Revenue of taxable payments. When reviewing your taxes, we look out for these errors and ensure that only the years for which you are due a refund are processed.
Non-Taxable Payments
| Back to Work Family Dividend | Not taxed |
| Child Benefit | Not taxed |
| Back to School Clothing and Footwear Allowance | Not taxed |
| Carer’s Support Grant | Not taxed |
| Constant Attendance Allowance (payable with Disablement Pension) | Not taxed |
| Disability Allowance | Not taxed |
| Disablement Gratuity (lump sum payment) | Not taxed |
| Domiciliary Care Allowance | Not taxed |
| Farm Assist | Not taxed |
| Working Family Payment (formerly Family Income Supplement) | Not taxed |
| Fuel Allowance | Not taxed |
| Guardian’s Payment (Contributory) | Not taxed |
| Guardian’s Payment (Non-Contributory) | Not taxed |
| Household Benefits Package | Not taxed |
| Telephone Support Allowance | Not taxed |
| Jobseeker’s Allowance | Not taxed |
| Jobseeker’s Benefit (paid to systematic short-term workers) | Not taxed |
| Jobseeker’s Transitional payment | Not taxed |
| Pre-Retirement Allowance | Not taxed |
| Supplementary Welfare Allowance | Not taxed |
| Widowed or Surviving Civil Partner Grant | Not taxed |
Taxable Payments
| Adoptive Benefit | Taxable |
| Blind Pension | Taxable |
| Carer’s Allowance | Taxable |
| Carer’s Benefit | Taxable |
| Death Benefit Pension | Taxable |
| Deserted Wife’s Benefit | Taxable |
| Deserted Wife’s Allowance | Taxable |
| Disablement Pension | Taxable (except for child increases) |
| Health and Safety Benefit | Taxable |
| Illness Benefit | Taxable (except for child increases) |
| Invalidity Pension | Taxable |
| Incapacity Supplement | Taxable (except for child increases) |
| Injury Benefit | Taxable (except for child increases) |
| Jobseeker’s Benefit (JB) and Jobseeker’s Benefit (Self-Employed) | Taxable (first €13 per week excluded) |
| Maternity Benefit | Taxable |
| One-Parent Family Payment | Taxable |
| Pandemic Unemployment Payment | Taxable |
| Partial Capacity Benefit | Taxable (except for child increases) |
| Paternity Benefit | Taxable |
| Parent’s Benefit | Taxable |
| Short-Term Enterprise Allowance | Taxable (first €13 per week excluded) |
| State Pension (Contributory) | Taxable |
| State Pension (Non-Contributory) | Taxable |
| Widow’s, Widower’s or Surviving Civil Partner’s (Contributory) Pension | Taxable |
| Widow’s, Widower’s or Surviving Civil Partner’s (Non-Contributory) Pension | Taxable |
I think I paid too much tax on my social welfare income, how do I claim it back?
If you think you have paid too much or too little tax on your social welfare income, and would just like us to check, just fill in our 50-second Quick Review Form. This form will provide us with the details necessary to reclaim any tax you have overpaid for the last 4 years.
Alternatively, you can fill out our Full Review Form, which provides us with the information required to claim any additional tax credits you might be due for the last 4 years, helping to maximise your tax rebate or eliminate any outstanding tax liabilities you might have.
