Tax on Saving deposits

B

Balfour

Registered User
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I am just wondering do you have to file tax returns on savings deposits even though the bank deducts the dirt tax at source

I am a PAYE employee

Thanks
 
As a PAYE employee you only have to file a tax return if your unearned income (including deposit interest, rental income, certain investment income) exceeds €3,174. If you are above this threshold (for any/all income in this category combined) you are liable to pay 4% PRSI which, in the case of deposit interest, is on top of the 41% DIRT deducted by the bank. [1, [broken link removed]]
 
dub_nerd said:
As a PAYE employee you only have to file a tax return if your unearned income (including deposit interest, rental income, certain investment income) exceeds €3,174.
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No. You need to file a tax return if you have ANY non-PAYE income.

The threshold you mention refers to PRSI liability.
 
Balfour said:
I am just wondering do you have to file tax returns on savings deposits even though the bank deducts the dirt tax at source
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Yes. There will not be any additional liability but you do need to declare this income.
 
CiaranT said:
Yes. There will not be any additional liability but you do need to declare this income.
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Really?! What percentage of people actually do this I wonder. I certainly haven't ever done so....
 
If I have no other income other than deposit interest, on which DIRT is deducted, can I claim some refund of the DIRT for normal items such as medical expenses, medical insurance, etc.?
 
knockshe said:
If I have no other income other than deposit interest, on which DIRT is deducted, can I claim some refund of the DIRT for normal items such as medical expenses, medical insurance, etc.?
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No. Qualification for a DIRT refund is limited to over 65's below a certain income threshold. There's no way around it. You could try lobbying your TD and the Minister for Finance about the crazy high levels of DIRT on much-reduced interest rates, and the lack of allowances (as I plan to, but with low expectations). The lack of allowances and banding means that it's easy to pay more in DIRT than many people pay in income tax.

If you are paying your own medical insurance, you get tax relief at source whether you actually pay any tax or not, so you are already getting a discount here. Medical expenses, which would qualify for a tax refund @20% if you were paying PAYE are no use to a DIRT-only-payer.
 
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Dear "Dub_Nerd"
Thank you for that info, it is much appreciated. Indeed, it is unfair and I will lobby local TD but I wouldn't be holding out much hope.
 
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