Income from weekly social welfare contributory payments is treated as taxable income by the Revenue Commissioners. Different taxation arrangements are applied by the Revenue Commissioners for the taxation of short term benefits such as disability, injury and unemployment benefit, and long term benefits such as deserted wife's benefit, old age, retirement and survivors pensions.
The taxation of unemployment benefit is administered by the Revenue Commissioners.This involves tax being collected through restricting tax refunds to unemployed persons; adjusting tax free allowances on resumption of employment; and reviewing the person's tax affairs at the end of the tax year.
The Revenue Commissioners have advised my Department that it is not necessary for unemployed persons to obtain a certificate of payments from my Department.
The taxation of disability and injury benefits is also operated by the Revenue Commissioners with the assistance of employers. In the case of persons in employment, their employers are notified by my Department of the amount of weekly benefit payable. This amount is taken into account by employers in calculating the employee's tax liability under the PAYE system.