Taxation on Contributory State Pension - qualified adult dependent

D

donalfff

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I receive the contributory state pension paid directly in to my bank account. My wife gets paid the qualified adult rate based on my Social Welfare contributions, paid directly into her bank account.

We do joint tax assessment. When I checked my P21 balancing statement, Revenue have entered her payments from Social Welfare under my Income as opposed to under her Income, surely that;s incorrect?
 
I'm afraid not!

According to https://www.revenue.ie/en/tax-profe...ains-tax-corporation-tax/part-05/05-05-33.pdf

"Section 126 (2B) of the Taxes Consolidation Act 1997, as inserted by Section 12 ofthe Finance (No. 2) Act of 2013, provides that for the tax year 2014 and onwards the State Pension, together with any ‘increase’ for a qualified adult, is deemed to be emoluments of the person beneficially entitled to the pension (that's you!) , i.e., both the pensionand the increase constitute a unitary amount, notwithstanding situations where theincrease is paid to the qualified adult. Therefore, from 1 January 2014, the increase for a qualified adult does not represent a separate source of income for the qualifiedadult. Consequently, the PAYE employee tax credit and increased rate band are notavailable in respect of the increase for a qualified adult."
 
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