I am informed by the Revenue Commissioners that the statistical information used to estimate the yield from taxing maternity benefit in 2013 is not sufficiently detailed to provide a reliable basis for ascertaining the precise information requested by the Deputy. However, I would point out that as a result of Maternity Benefit becoming taxable for all claimants with effect from 1 July 2013, three possible tax outcomes could arise:
1. An individual will pay no income tax on their maternity benefit as their tax credits will be sufficient to reduce their tax liability to zero.
2. An individual will pay tax on their maternity benefit at the standard rate of tax.
3. An individual will pay tax on their maternity benefit at the higher rate of tax.
Different Cases
|
Maternity Benefit
|
Tax liability on Maternity Benefit
|
Case 1 No tax due
|
€6,812
|
Nil
|
Case 2 (taxed at 20%)
|
€6,812
|
€1,362
|
Case 3 (taxed at 41%)
|
€6,812
|
€2,793
|