It hasn't been increased since 2008. The last time it was changed, in 2011, it was cut from €40,000 to €36,000.I posted this question yesterday but cannot find it.
Because of the pension increases and extra payments, I am now over the €36000 tax threshold for myself and my wife and paying tax for the first time in 15yrs.
Has this limit been increased in the buget?
If I may use this thread to ask another question that I have about exemption limits:
People over 65 are exempt from income tax if their "total income" is below the exemption limit. The phrase "total income" sounds fairly clearly like it means everything, but, just to be sure, are there any exceptions? For example, it is possible to claim income tax relief on long-term leased farmland. Is that income still included when calculating "total income"? What about income from forestry, which is also tax free (and Teagasc says "Woodland grants are not treated as income but in the preparation of annual accounts by an owner the cost of planting and maintenance should be shown as net of grants received")?
The 18000 euro exemption for over 65's is basically worthless.
The term earned income was not a good one.But many people over 65 do not have earned income. If they earn the €18k from deposit interest or other sources that do not qualify for the earned income credit, then it seems as if the exemption is quite valuable.
Is pension income always treated as earned income?The term earned income was not a good one.
I should have said PAYE or self employment income.
Most people over 65 would have PAYE income from a pension.
If they have enough of this income they will be able to make use of the PAYE /earned income tax credit + the personal tax credit. With both tax credits they can earn more than 18000 euro before entering the tax net regardless of what age they are.
The 18000 euro exemption would only be an advantage to an over 65 year old with little or no PAYE / self employment income and a considerable amount of investment / rental income. e.g. not able to claim full PAYE / self employment tax credit.
The tax credit applies to PAYE income and to earned self employment income.Is pension income always treated as earned income?