Decrease in tax credits cos of sml private pension - help pls

M

michelle68

Guest
I hope someone can help me with a tax credit issue for my parents as my Dad is in a nursing home and I am trying to deal with his affairs. My Dad gets the state old age pension in his name for both my mother and himself of €423 per wk. He also has a small private pension. This gives my mam and dad a joint yearly income of €37,686. My query why in 2011 his tax credits has been reduced by c. €3,137 because of his state pension. I thought the state pension was meant to be tax–free but they are in effect taxing this. Why?

His tax has increased by €106 per month. If he was working and his yearly salary was €37,686, his tax would have changed by considerably less than this. (I am single, earn €36k pa and down considerably less than this).

I would really be grateful if anyone could help me understand this. Thank you.
 
I hope someone can help me with a tax credit issue for my parents as my Dad is in a nursing home and I am trying to deal with his affairs. My Dad gets the state old age pension in his name for both my mother and himself of €423 per wk. He also has a small private pension. This gives my mam and dad a joint yearly income of €37,686. My query why in 2011 his tax credits has been reduced by c. €3,137 because of his state pension. I thought the state pension was meant to be tax–free but they are in effect taxing this. Why?

His tax has increased by €106 per month. If he was working and his yearly salary was €37,686, his tax would have changed by considerably less than this. (I am single, earn €36k pa and down considerably less than this).

I would really be grateful if anyone could help me understand this. Thank you.

For all people I understand the state pension is taxable but many dont have a tax bill as it is below limits and have no other income. as the combined income brings him to taxable position best to file tax return at year end

at year end file a tax return for him and you will get back any tax if overpaid or may get marginal relief on it once tax return filed or pay any tax due if underpaid
 
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