Tax Exemption Limit

[dewdrop]

I see that the income limit is 20,000 for a single person which would seem to attract 4000 tax but the tax credits for a single person is 1,830 x 2 which equates to an income of 18,300 which would suggest that 1,700 income would be taxed on a total income of 20,000. I know i am misreading the figures but out of curiousity someone might put me right.

 

[jpd]

The tax exemption limit applies to taxpayers over 65 only.

A single person under 65 with an PAYE income of 20,000 would pay income tax of 20,000 x 20% = 4,000 less tax credits 2 x 1,830 = 340.

Don't forget Income levy = 400 and PRSI = 535 or thereabouts

 

[dewdrop]

Thanks

 

[papervalue]

http://www.revenue.ie/en/tax/it/leaflets/it8.html#section1

link above to how it works for over 65.

apply to under 65 up to 2007 i think