Invalidity Pension vs Disability, tax

Discussion in 'Welfare and state benefits' started by mollie006, Nov 11, 2016.

  1. mollie006

    mollie006 New Member

    Posts:
    8
    Hello, My uncle is on Disability Allowance for the last 2 years. He was recently told he should apply for the Invalidity Pension.

    I rang and he has plenty of stamps and over 30 years of working, so they said there would be no problem getting it.

    The reason for the change is he gets much better health in warmer climates, so he is thinking of moving full time to Spain where he has relatives already that can mind him.....and the invalidity pension allows you to live out of the country.

    In reading about it, I saw there could be tax ramifications....is anyone familiar with what that would mean? He has no money in the bank, a plot of land worth less than 20,000 that is unused, an old 1997 car....really nothing at all.

    Would it be wise for him to change from the disability allowance to the invalidity pension? Don't want to advise him wrongly since he asked me to check it for him.

    Thank you very much.
     
  2. mollie006

    mollie006 New Member

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    8
    Any help out there?
     
  3. Monbretia

    Monbretia Frequent Poster

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    917
    Give Citizens Information helpline a ring or call into one of their offices, they will know the answer.
     
  4. DirectDevil

    DirectDevil Frequent Poster

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    299
    AFAIK Invalidity Pension is reckonable income and chargeable to Irish income tax i.e. you must return the amount of invalidity pension you receive in your tax return and it is included in calculating your income for tax assessment purposes.

    Also, I think that eligibility for Invalidity Pension does not include an assessment of means. You qualify for it on the basis of medical criteria and the relevant contribution conditions.

    Therefore, I suppose the answer would be that his tax liability would be the same as if the Invalidity Pension was a part of his regular income.

    BTW I do not know what the rules, if any, are about residency within or without Ireland in terms of eligibility to receive the benefit.
     
  5. DirectDevil

    DirectDevil Frequent Poster

    Posts:
    299
    I should have added that Invalidity Pension should not be liable to USC.