An individual or a couple in a marriage or civil partnership, aged 65 or over whose total income from all sources is slightly over the exemption limit may qualify for marginal relief. The current exemption limits are €18,000 for single or widowed individuals and €36,000 for a couple in a marriage or civil partnership. Marginal relief is applied if it is more beneficial than the granting of tax credits.
In the case of the persons concerned, their income exceeds the exemption level by a varying amount year on year. This makes it difficult to determine, in advance, if applying marginal relief would be more beneficial than granting tax credits for that year. During 2016 they have been taxed in accordance with the ordinary Tax Credits and SRCOP (Standard Rate Cut off Point). Revenue will arrange to contact the persons concerned in January to review their position for 2016 and make sure that they are taxed in the most beneficial way for 2016.