In short
Some social welfare payments count as taxable income, even though no tax is taken off them when they're paid. Revenue usually collects the tax by reducing the credits on your job. If that isn't done right, you can end up underpaying, or overpaying, for the year. We check both.
Common taxable payments
| Payment | Income tax | Notes |
|---|---|---|
| Illness Benefit | Taxable | The first weeks of a claim are usually not taxable ◆ |
| Jobseeker's Benefit | Taxable | Often settled when you return to work, or at year end |
| Maternity, Paternity and Parent's Benefit | Taxable | Not subject to USC or PRSI |
| State Pension | Taxable | Credits are usually set against it |
| Child Benefit | Not taxable |
What goes wrong
- Your employer keeps paying you through payroll while you get a benefit, and your credits are used twice
- Revenue reduces your credits for the benefit, and the payment ends but the reduction doesn't
- You stop work and never claim back the tax on unused credits
What to do
After the year ends, review your Statement of Liability in myAccount. If something looks wrong, or you've been on a benefit and your payslip changed, ask us to check it.
Sources
Revenue and Citizens Information: Taxation of social welfare payments. Confirm the Illness Benefit exempt period before publishing ◆.
General information, not advice on your own situation. TaxMind checks your record before filing anything.
