August 2010 (Part 1)

Westmeath CIS provide answers to listeners' questions

Midland Radio 3

 

Thursday 4^th August 2010 (Part 1)

 

Question 1

 

Theresa in Tullamore is an elderly widow living alone. She receives a pension of about 230 Euro and the living alone allowance.  Is living alone allowance included in income for taxable purposes?

 

Answer 1

Income tax applies to almost all income and most SW payments are taxable.

Social Welfare Pensions are taxable and therefore the living alone allowance is also taxable.

However, If you are aged 65 or over, the tax exemption limits are much higher for you and there are some extra tax credits.

It is possible to get tax relief for covenants to people aged 65 and over.

In certain circumstances, you may be able to reclaim any Deposit Interest Retention Tax paid.

Rules

Tax Exemption Limits

Exemption limits are income limits below which no tax is payable.

Annual exemption limits for 2009 and 2010

If you expect that your income for the year will be less than these limits, you should contact Revenue and they will issue a revised determination of tax credits to you. If your income is not much above these amounts, you may get what is called "marginal relief". That means that you do not go back into the normal tax system - instead you pay tax at a rate of 40% on the amount by which your income exceeds your relevant exemption.

The point at which marginal relief ceases to be of benefit varies with your family circumstances and the tax credits to which you are entitled.

You can find more information about income tax exemptions and marginal relief on Revenue's website.

Age Credit

This is additional to the personal tax credit and may be claimed once you or your spouse reaches the age of 65.

The following are the Age Tax Credits:

If you or your spouse is 65 or over please contact Revenue to claim this additional tax credit.

Question 2

 

When is back to school clothing and footwear allowance being paid out applied ages ago and have heard nothing.

 

Answer 2

 

It should be paid out fairly soon, but contact the HSE and make sure that your application has been received and that you applied on the correct form. 

 

Question 3

 

David in Mullingar is living in rented accommodation and he is wondering if his girlfriend moves in with him can he still claim rent allowance as she is working full time?

 

Answer 3

 

If his girlfriend moves in he will lose his rent supplement.  Rent supplement will not be paid where one person in a couple is working full time.

 

Question 4

 

Ann’s son is thinking of going back to do a part time course in September he is 25 and is wondering would he be entitled to anything as he is unemployed at the minute.

 

Answer 4

 

If he has been claiming Jobseekers benefit for 9 months he could be entitled to a Back to Education Allowance, but the course would need to be a full time one.

 

To be entitled to this payment you must be claiming a sw payment for at least 9 months and taking up a full time course in a recognised college.

The allowance is payable for the duration of the course, but if you were previously getting a jobseeker's payment, you will not get the Back to Education Allowance (BTEA) during the summer period between academic years. If you cannot get work during the summer months, you can apply for Jobseeker's Benefit or Jobseeker's Allowance. You may get BTEA during the summer if you are on work placement or work experience that is an essential part of your course.

Cost of Education Allowance

In addition to your weekly BTEA payment, you will also get an annual Cost of Education Allowance of €500, which is paid at the start of each academic year.

People signing on for unemployment credits or submitting medical certificates for illness credits may get a Cost of Education Allowance - see 'Unemployment or illness credits' in 'Rules' below.

Keeping your secondary benefits

If you qualify for the Back to Education Allowance, you will keep an entitlement to any secondary benefits you already have, for example, Christmas Bonus, Fuel Allowance, or Rent Supplement and Mortgage Interest Supplement. However, any increase in income may affect your entitlement to Rent/Mortgage Interest Supplement or the amount of supplement you get. For example, this can happen if you move from a reduced social welfare payment to the standard BTEA rate. 

Question 5

 

Geraldine in Portlaoise has joint custody of her two children with her ex husband and she is wondering should he be paying her maintenance as she is unemployed?

 

Answer 5

There is a legal responsibility in Ireland on both spouses to maintain each other and any children in accordance with their means. Maintenance can be paid periodically (i.e., weekly or monthly) or in a lump sum.

Maintenance Orders

If the parties cannot agree upon maintenance, either party can apply to court for a maintenance order. An application for maintenance can be brought either in the District or Circuit Court.

A person seeking a maintenance order can represent himself or herself. However, a person seeking a maintenance order should always check to see if they are eligible for legal aid or contact a private solicitor to assess the cost of the application. The cost of the application can be awarded against the party refusing to pay maintenance if a judge considers it appropriate.

Maintenance can be awarded to a spouse for their own benefit or for the benefit of a child who is under the age of 18, or 23 if the child is in full-time education. If the child is over 18 and under 23 and the financial circumstances do not allow him/her to attend further education, maintenance can be applied for in order to facilitate further education. If the child has a mental or physical disability to such a degree that it will not be possible for the child to maintain him/herself fully, then there is no age limit for seeking maintenance for their support. Each party must disclose their finances to the court and the judge will consider all of the family's circumstances when making a maintenance order.