18,000 tax limit

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roker

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Because of the pension increases and double payments etc . I am now over the €36000 tax threshold for myself and my wife and paying tax for the first time in 15yrs. paying 42% over this limit.
Has this been increased in the buget?
Does any of these changes affect the limit
 
Does your wife have pension income, in her own name, of sufficient size to make use of all her 2k earned income tax credits ?
(10k pension)

If she has, then your combined earned, personal and age tax credits could be 8490 euro for 2025 or 7990 euro for 2024. This would allow you to earn 42450 in 2025 euro or 39950 euro in 2024 before you become liable to pay income tax.
 
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Our tax and pensions are combined and we had €18000 tax credit each = €36000 which was the limit for years and we have now exceeded
 
You could earn more than 36k and pay no tax if both of you have pension income of over 10k in your individual names.

Does your wife have her own contributory pension or are you getting an increase for a qualified adult for her ?
 
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From 1 January the Standard Rate Cut Off Point will increase from €42,000 to €44,000, with proportionate increases for married couples and civil partners.

The main tax credits, the Personal, Employee and Earned Income Credits, will increase by €125 to €2,000. The following tax credits, which support families and those with caring responsibilities will also increase:

the Home Carer Tax Credit by €150, to €1,950
the Single Person Child Carer Credit €150 to €1,900
the Incapacitated Child Tax Credit by €300 to €3,800, and
the Dependent Relative Tax Credit by €60 to €305

There are other allowances such as renters credit.
 
roker said:
Because of the pension increases and double payments etc . I am now over the €36000 tax threshold for myself and my wife and paying tax for the first time in 15yrs. paying 42% over this limit.
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You probably need to clarify the nature and amount of the any income that each of you is receiving.

How are you paying 42%? There's no such income tax rate as far as I know.
 
roker said:
Has this been increased in the buget?
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This has not been increased for many years.

No yearly increases to compensate for inflation is another stealth tax.

Because of the lack of yearly increases and the granting of yearly increases to personal and earned income credits, the 36000 euro exemption is only useful to married couples where one partner has little or no individual income.
 
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Annieindublin said:
From 1 January the Standard Rate Cut Off Point will increase from €42,000 to €44,000, with proportionate increases for married couples and civil partners.

The main tax credits, the Personal, Employee and Earned Income Credits, will increase by €125 to €2,000. The following tax credits, which support families and those with caring responsibilities will also increase:

the Home Carer Tax Credit by €150, to €1,950
the Single Person Child Carer Credit €150 to €1,900
the Incapacitated Child Tax Credit by €300 to €3,800, and
the Dependent Relative Tax Credit by €60 to €305

There are other allowances such as renters credit.
Click to expand...

While all this is true, it ignores what the original query is about:

the 18k/36k income tax exemption for people aged over 65

Exemption limits

This page explains exemption limits on certain taxes.
www.revenue.ie www.revenue.ie
 
roker said:
Because of the pension increases and double payments etc . I am now over the €36000 tax threshold for myself and my wife and paying tax for the first time in 15yrs. paying 42% over this limit.
Has this been increased in the buget?
Does any of these changes affect the limit
Click to expand...

No, the 18k / 36k exemption limit has not been increased.

Exemption limits

This page explains exemption limits on certain taxes.
www.revenue.ie www.revenue.ie

It hasn't changed in years, so more and more over 65s are going to be dragged into the income tax syatem.
 
@roker, be mindful also, that perhaps over the past 15 years of exemption, you may well have submitted Form DE1 (Deposit Interest paid without deduction of DIRT) to any Credit Union/Bank/Building Society/Post Office accounts you held during this time, but now as your income exemption has exceeded this limit, DIRT will need to be applied and deducted from these accounts, from 2024/2025, as the onus is on you to notify them of the change.
 
I don't get the problem here.

Let's say the combined income is €42,000 in 2025

Taxed @ 20% = €8,400 Tax Due

Less Credits (€4,000) Personal Tax Credit
(€4,000) Employee Tax Credit
(490) Age Credit

Tax Due = 0

This is presuming your wife has a pension in her own right
 
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Bank deposit interest is a form of income.

So personal tax credits can cancel out dirt tax.
 
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@Black Sheep, I presumed the OP availed of the age exemption limit for persons over age 65, for many years, as it suited their personal circumstances, as opposed to the normal tax system of credits/bands, which on the outset appears to be more beneficial as indicated by posters above, including your good self.
Opting for the age exemption limit, while being compliant, may have far outweighed the prospect of paying DIRT@33% for the OP.
 
Fionclaire said:
Opting for the age exemption limit, while being compliant, may have far outweighed the prospect of paying DIRT@33% for the OP.
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I checked this out on form 11.
Personal tax credits can eliminate dirt tax.

A couple with income in excess of 36k could pay no tax on bank deposit interest.
 
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