Hi. I'm looking for some clarification regarding the taxation of the Job Seeker Benefit:
- Is it taxed if it is your only source of income?
- If yes, at what rate (20%)?
- Does it come off directly from your weekly JSB pay?
All I could find on the revenue/citizens information sites is that it is collected on your JSB by reducing your annual tax credits and rate band (which I don't understand).
Sorry if this is already discussed in other threads, I couldn't find it. Thanks.
Partly true.Income from welfare payments is liable for tax in the same way as any other income
Is this because allowances (as distinct from benefits) are means-tested?Partly true.
Income from welfare benefits are normally taxable.
Income from welfare allowances are normally tax-exempt.
Thanks Salvadore. I wonder though, would a redundancy payment also be included in the cumulative income for the respective tax year or just the wages? If yes, then it's likely that the cumulative income will exceed the tax free allowance. In which case, will the JSB pay have the marginal rate tax deducted from the weekly amount of €208?Income from welfare payments is liable for tax in the same way as any other income but if the cumulative income in any given tax year doesn’t exceed your tax free allowance then there’s no tax liability.
I don’t think there’s any retrospective liability when you re-enter employment but I’m open to correction.
Generally but most definitely not always.Is this because allowances (as distinct from benefits) are means-tested?
If means are so low as to qualify for an allowance, there generally wouldn’t be any other income anyway. So whether allowances should be treated separately from benefits for tax purposes would be a moot point?
I can’t say for certain.Thanks Salvadore. I wonder though, would a redundancy payment also be included in the cumulative income for the respective tax year or just the wages? If yes, then it's likely that the cumulative income will exceed the tax free allowance. In which case, will the JSB pay have the marginal rate tax deducted from the weekly amount of €208?
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