How is income taxed in the following situation?
A divorced person in the PAYE system, still in full time work i.e. not retired and having a child under 10, receiving a Widow(er)s pension and also a pension from the civil service spouses' and children's pension scheme. Parent also receives the child's pension (€40 widow(er)s weekly and about €1300 CS Pension anually). Parent has not remarried so is entitled to both pensions as PAOs were made at the time of divorce.
Are the parents and child's pension treated separately? This document seems to indicate that they are - https://www.revenue.ie/en/tax-profe...ains-tax-corporation-tax/part-05/05-01-22.pdf
If the child's income is taxed through the parents PAYE then it will be taxed at the highest rate (income tax, PRSI, etc). If the child's pension is taxed separately then I suspect that very little or no tax will be due.
The parents tax credits have not changed in the four months they have been receiving this income though I suspect that they should have otherwise the parent will have a large tax bill at the end of the year. Does this happen automatically?
Should the child be registered on Ros so that their income may be taxed separately?
A divorced person in the PAYE system, still in full time work i.e. not retired and having a child under 10, receiving a Widow(er)s pension and also a pension from the civil service spouses' and children's pension scheme. Parent also receives the child's pension (€40 widow(er)s weekly and about €1300 CS Pension anually). Parent has not remarried so is entitled to both pensions as PAOs were made at the time of divorce.
Are the parents and child's pension treated separately? This document seems to indicate that they are - https://www.revenue.ie/en/tax-profe...ains-tax-corporation-tax/part-05/05-01-22.pdf
If the child's income is taxed through the parents PAYE then it will be taxed at the highest rate (income tax, PRSI, etc). If the child's pension is taxed separately then I suspect that very little or no tax will be due.
The parents tax credits have not changed in the four months they have been receiving this income though I suspect that they should have otherwise the parent will have a large tax bill at the end of the year. Does this happen automatically?
Should the child be registered on Ros so that their income may be taxed separately?