Emer Higgins
Question:52. Deputy Emer Higgins asked the Minister for Finance if he will review the tax burden for persons over 66 years of age who are still making tax contributions (details supplied). [32249/20]
View answerThursday, 22 October 2020
Questions (52)
Written answers
In relation to taxation for those over 66, a person aged 65 and over is fully exempt from income tax where his or her total income from all sources is less than the relevant exemption limit. For 2020, the exemption limits are €36,000 for a married couple or civil partners and €18,000 for a single individual. Where an individual exceeds the exemption limit, he or she is liable to tax based on the normal system of rate bands and tax credits, subject to marginal relief where relevant.
Other tax supports for individuals in this age group include the Age Tax Credit which is available to all individuals aged 65 or over who do not qualify for an exemption from income tax. This credit is currently set at €245 for single individuals or €490 for a married couple or civil partners.
In the context of limited resources, I am satisfied that the current income tax system is fair and equitable to individuals who are over the age of 66.
In relation to the taxation of taxi drivers, I would highlight that as part of Budget 2021, the Earned Income Credit was increased to €1,650. This change will apply from the 2020 tax year and is targeted at those who are self-employed.
The position with respect to individuals’ entitlements to the Pandemic Unemployment Payment (PUP) is a matter for my colleague, the Minister for Social Protection. However, I would note that as part of Budget 2021 it was announced that self employed workers can earn up to €480 per month and still keep their PUP.
Further, I would advise the Deputy that, subject to the other relevant qualifying criteria being met, there is no restriction on persons who are over 66 in the application of the Employment Wage Subsidy Scheme (EWSS), or the loss relief measure for the self-employed that was announced in the July Stimulus package.
Question No. 53 answered with Question No. 48.