does investment income come under earned income

M

mcriot29

Registered User
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Hi quick question does investment income that's not been taxed at source
Come under earned income for tax credit ,if it's the only income
Thanks
 
No, it would be unearned income. Earned income is either from an employment or a business (e.g. sole trader).
 
Ok what way would I bet taxed if it's my only income
I know prsi but when would income tax etc kick in .
Would I not get any tax credit
 
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Assuming you're unmarried and under 65, income tax would kick in straight away. But you would have a personal tax credit of 1650. So you only pay income tax on earnings over 8250
 
But since I'm not employed or working how would I have a tax credit .
I'm a carer but don't have any carers allowance due to means
 
Employees normally have 2 taxes credits, each amounting to 1650. The first is a personal credit, which everyone gets. the 2nd is a PAYE credit, which only PAYE workers get.
You would get the first of these.
 
Not sure what Form 11 has to do with it. I'm in the same boat -- I fill in a Form 11, have no income other than unearned income (share dividends) and pay income tax on it, less the 1650 personal credit.
 
dub_nerd said:
Not sure what Form 11 has to do with it. I'm in the same boat -- I fill in a Form 11, have no income other than unearned income (share dividends) and pay income tax on it, less the 1650 personal credit.
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Ho do you get a tax credit on unearned income Is not only for earned income.
Also would you not come under the self employed tax credit which is lower
 
No, the Earned Income Tax Credit is for self-employed people and is their alternative to the PAYE tax credit. The personal tax credit is different to both of those and available to everyone in addition to either the Earned Income or PAYE credits. If, like me, you have no earned income you still get the personal tax credit. This is Revenue's own calculation, which they do for you if you fill out the Form 11 through ROS. In ROS you have to tick a box to claim the Earned Income or Employee tax credit, but it will calculate your personal tax credit for you based on your status. So if I'm mistaken about this, so is ROS.
 
Ah ok thanks Dident know this.
I'm doing a paper return but as far as I know they will work out tax for me etc .
 
mcriot29 said:
I'm doing a paper return but as far as I know they will work out tax for me etc .
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Sorry to be the bearer of bad news but they definitely won't. A Form 11 is your own personal tax declaration. It's up to you, not Revenue, to get it right and make a true declaration. I would really, strongly, recommend signing up for ROS and filing electronically. You will need to get a digital certificate but apart from that it's far easier than the paper approach. Using ROS is the only way that Revenue will assist you with your tax calculation. You still have to accept their figures and copy them to make your own declaration, and if anything goes wrong it's still your fault. But at least you can be confident that if you have given them the right info then the calculation is correct and you are not left guessing as to whether you have understood the tax code correctly.
 
But it on it it says the following,
You do not have to complete the self assessment panels if you submit this return to revenue on or before 31st of August 2018
 
this is from the revenue website ///
From 2013, your annual return of income form – Form 11 - includes a self-assessment section which you (or your agent) must complete and sign. If you do not make this self-assessment you will be liable to a penalty of €250. However, you do not have to make a self-assessment if you returned the completed Form 11 on or before 31 August in the year following the year of assessment If you filed your completed return on or before that date Revenue will make the self-assessment on your behalf. If you use ROS, the system can calculate your tax liability based on the information you input and you can then choose to use this in your self-assessment.
 
Apologies, mcriot29, I stand corrected. I never knew they changed things in 2013 (I've been filing electronically since well before then). I still don't understand it -- with electronic filing you still have to make a self-assessment, but you can choose to do it with the numbers that Revenue calculated for you. It's still your self-assessment, so I'm confused by the idea that Revenue can make a self-assessment on your behalf with the paper form. Do they perhaps notify you about the assessment so that you still have a chance to disagree with it before 31-Oct?
 
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