Dáil Éireann Debate, Thursday - 30 April 2015
71. Deputy Shane Ross asked the Minister for Finance his plans to provide tax refunds for necessary health expenses to those paying tax on their private pensions (details supplied); and if he will make a statement on the matter. [17134/15]
Amharc ar fhreagraAny couple in a marriage or civil partnership aged 65 or over, whose total income from all sources is slightly over the age exemption limit may qualify for marginal relief in accordance with Section 188 (5) of the Taxes Consolidation Act 1997. Marginal relief is determined by comparing a person's liability using two calculation methods. In method 1, the person's liability is calculated by reducing income by the Age Exemption and charging the balance at 40%. In method 2, the person's liability is calculated at the appropriate 20% and 41% rates and allowing the full tax credits due. The two calculations are compared and the most favourable outcome is granted to the person.
The person concerned applied for a review of his liability online for the year 2014. On 2 March 2015 a PAYE Balancing Statement issued showing a refund due of €1,684.49 which incorporated marginal relief of €759.03 as this was most favourable outcome for the person concerned.
Subsequent to this review, the person concerned requested an amended Balancing Statement reflecting a refund due in respect of Health Expenses. This was provided by Revenue. The inclusion of the Health Expenses did not materially change the amount of his overall tax liability for the year.
Revenue has separately written to the person concerned setting out the position for him.
