Career break - lump sum taxed heavily

T

theTinker

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I began a incentivised career break january 1st.

I was expecting a gross payment of about 16k. However after tax that became 7.5k. I was VERY surprised that the tax took 9kish from it. Since i'm now not earning a income from that company (going back to college). I believe i could claim most of that back. is that correct?

Do i have to claim back the tax taken every month since tax free credits are issued throughout the year if that makes sense?

Would anyone have a rough idea of what i could expect back?

Im single, no children, own a house, not claiming anything.

Thank you very much
 
You only had one month's tax credits to use against your payment, hence the large tax bill. You can claim month-by-month rebates until you "use up" your tax credits. Also request a balancing statement at year end (all on the assumption that previous tax years are up to date).
 
First you need a P45 - then you can fill in form P50 after 30 days and apply to tax office for refund .

If you do not receive P45 , your tax refund will be issued by your employer .

As you are going back to college , you may be ok to claim back some prsi/levies in 2011 , if your total income for year does not exceed € 26,000.( keep copy of your medical card for this )
 
Make sure you were paid the lump sum on the 1st of Jan or later. If you received it in December 09 you are not entitled
to get any tax back. If you can prove you will not be working for the rest of the year (get a letter from your college) you can fill in a form 50 (I think) and claim all the tax back in one lump sum pretty much straight away.

Doh - did n't see above post so similar
 
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