Tax on Pensions

Note that is tax included on my state pension

Tax isn't "included" on your State Pension.

However, you may be liable to pay income tax on your State Pension if your total annual income, including pension(s), exceeds the value of your annual tax credits. You may also be liable to pay USC.
 
Tax isn't "included" on your State Pension.

However, you may be liable to pay income tax on your State Pension if your total annual income, including pension(s), exceeds the value of your annual tax credits. You may also be liable to pay USC.
DSP pensions are not liable to USC.
 
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Speak for yourself Shirazman.
Many over 66s continue to pay taxes far in excess of any DSP benefits they may receive.
 
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Speak for yourself Shirazman.
Many over 66s continue to pay taxes far in excess of any DSP benefits they may receive.

Obviously. But my comment related to the overall cohort of the population aged over 66 - there will always be outliers.

Indeed I myself paid a massive sum to the Exchequer last year - mainly due to the taxes and duties levied on vintage port, Islay malts and fine wine. And this year, all going well, I plan to pay them even more! None of which in any way contradicts the validity of my original claim.

DSP pensions are not liable to USC.


Correct and right - well done!

That's why my comment included the words "you may have to pay USC".
 
Tax isn't "included" on your State Pension.

However, you may be liable to pay income tax on your State Pension if your total annual income, including pension(s), exceeds the value of your annual tax credits. You may also be liable to pay USC.
State pension is taken into account for my total income therefore it is taxable
Pension + A + B = total earnings
 
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State pension is taken into account for my total income therefore it is taxable
Pension + A + B = total earnings
I think what Shirazman is trying to state is that the state pension is paid without any tax deducted. It is however liable to income tax. The tax is collected by reducing your tax credits and 20% tax band.
The state pension is not liable to PRSI or USC.
 
The State will get 40% of my State Pension and 14.75% PRSI, 8% USC, plus 40%-ish income tax on almost everything else for the duration of my career.

The State is ‘winning’ the war IMO.