How much can one earn tax free.

Daddy

Registered User
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Hi,

What is the amount one can earn tax free ! My son is a student hoping to get a job in McDonalds. Is there a figure he can earn before paying any tax.

Thanks
 
Well there's 3 different types of tax, PAYE, PRSI, & USC, and they all have different thresholds

For a normal single guy with basic tax cut-offs & credits etc the weekly thresholds are

PAYE - €317.31
PRSI - €352.00
USC - €193.00

so he can earn €193 per week without paying any taxes whatsoever but even if he earned €317.31 he would only pay about €9.11 in USC and that would be it as far as taxes payable goes.

Those figures are based on a full year, he would have some unused USC & PAYE cut-offs so realistically if he has no other income in 2012 he could earn a lot more than €193 week between now and the end of the year and pay little or no tax at all.

Hope that helps
 
Thanks - that does help.

My son is a 16 year old T/Y student.

So he has no income thus far in 2013 and if he earns say 5k between now and Christmas
he would have practically zero tax to pay - is that right !
 
What's so important about knowing the weekly amount you can earn tax free?If your son gets loads of hours and earns in excess of the figures above,he will a bit of tax on the balance.So what?
 
Could you get your son to deal with his own taxes. He'll very quickly get the hang of it if he finds himself on emergency tax.
If he's old enough to earn the money he's old enough to deal with the taxes
 
Thanks - that does help.

My son is a 16 year old T/Y student.

So he has no income thus far in 2013 and if he earns say 5k between now and Christmas
he would have practically zero tax to pay - is that right !

In theory that is correct. However as it is quite late in the year Revenue may not issue a cumulative tax credit cert, instead they may issue a Week 1 cert. This means that instead of being able to use the 9 months of unused tax credits accumulated since January, he can only use 1 week's credits per week. So he will some pay PAYE & USC each and every week but he can reclaim it all in 2014 once he gets his P60 from his employer.
 
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