If you want to use your tax credits you could always try getting a job, or using some of your substantial funds (175 net per week equates to over 15k gross interest p.a.) to invest in either a business of your own, or in investment(s) that would yield a return in a form of income (eg dividends) that would allow you to use your standard rate band and personal tax credit.
I'm in the same boat. The answer is no (which is pretty annoying compared to just a couple of years ago, considering that you are now paying considerably more in DIRT that you would in income tax on the same amount if it were income from employment).
You are also liable to pay PRSI at 4% on top of the 41% DIRT. Everyone is liable for this from 1-Jan-2014, but Revenue have always charged it to people whose only income is "unearned" (e.g. rental or deposit income). I had to pay it for 2013, but not for previous years when I had other income from employment.
try getting a job / invest in either a business
If you want to use your tax credits you could always try getting a job, or using some of your substantial funds (175 net per week equates to over 15k gross interest p.a.) to invest in either a business of your own, or in investment(s) that would yield a return in a form of income (eg dividends) that would allow you to use your standard rate band and personal tax credit.
If you want to use your tax credits you could always try getting a job, or using some of your substantial funds (175 net per week equates to over 15k gross interest p.a.) to invest in either a business of your own, or in investment(s) that would yield a return in a form of income (eg dividends) that would allow you to use your standard rate band and personal tax credit.
"Slightly" lower? -- it has gone up 105% in five years ... 125% if you count the PRSI.In previous years you still had to pay DIRT on your deposit interest albeit at a slightly lower rate but not PRSI.
In years gone by when the DIRT rate was below the income tax rate was a person required to pay the difference between the DIRT rate and the income tax rate?
"Slightly" lower? -- it has gone up 105% in five years ... 125% if you count the PRSI.
Even five years ago, DIRT was more expensive than income tax for modest deposit income because there were no credits that could be offset against it, unlike income tax.
Is there a solution to this other than the get a job idea?
If you invest in Irish Government Bonds, the interest is paid gross and is not liable for DIRT. It is liable to Income Tax but only after any tax credits are taken into account so if your only incomer is 15,000 pa then no tax would be due
If you want to use your tax credits you could always try ... investing in investment(s) that would yield a return in a form of income (eg dividends) that would allow you to use your standard rate band and personal tax credit.
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