Form 12

[AKMuller]

Under what heading in form 12 online can you declare interest from State Savings?

 

[ClubMan]

Which state savings products?
Aren't most of them tax free?
In which case do you even have to declare them?

 

[AKMuller]

If interest from 5 year state saving certificates brings you over €5,000.00 do you have to declare it then?

 

[ClubMan]

Not according to this thread...

Savings Certificates Interest

I will earn about €6,500.00 in Savings Certificates Interest in 2018. I have two questions about this. Will I have to fill out a form 11 for 2018 and what tax will I be liable for on the €6,500.00. Thank You Abbeys

www.askaboutmoney.com

 

[ClubMan]

My understanding is that only income actually assessable for tax must be filed on a tax return and, where the returns generated from a state savings product are tax free they don't need to be filed in a return.

 

[Freelance]

Under what heading in form 12 online can you declare interest from State Savings?

If interest from 5 year state saving certificates brings you over €5,000.00 do you have to declare it then?

Currently the only income from State Savings which needs to be declared when making an Income Tax return is interest received from an An Post Book Based Deposit Account, as this is liable for DIDT.

All other current State Savings products are currently not subject to Deposit Interest Retention Tax (DIRT) and are exempt from Income Tax. See here.

In terms of tax returns, we need to look at paragraph 3.2 of TDM Part 08-04-12 (quoted below). In the case of both Form 11 and Form 12 it is quite specific that "deposit interest income subject to DIRT should be included" A reasonable man or woman would interpret this to mean that you are not required to declare "deposit interest income which is not subject to DIRT", such as State Savings income (other than An Post Book Based Deposit Account income) on your tax return. This is certainly the interpretation that I use when completing my tax returns.

In any event you have no tax liability in regard to this income and Revenue are busy enough with real work not to waste their time chasing people over technical issues (if there was one) where there is zero liability.

3.2 What returns are required?
Where deposit interest income has been taxed through the operation of DIRT, the account holder does not need to make a tax return, unless they are already filing one.
Where the deposit interest income has been taxed through the operation of DIRT and the account holder is already making a tax return, the deposit interest income should be included as follows:

• for self-assessed taxpayers who file an Income Tax Return (Form 11), deposit interest income subject to DIRT should be included in section G - “Irish Other Income”, under the “Irish Deposit Interest / Credit Union Dividends” heading on the Form 11.
• for PAYE taxpayers with taxable non-PAYE income (including income subject to DIRT) of less than €5,000, deposit interest income subject to DIRT should be included on the Income Tax Return (Form 12) under the “Irish Deposit Interest/ Credit Union Dividends” heading on the Form 12. When making a return of income through MyAccount, this is categorised under “Other Income”.