Income Tax question!!

py2006

Hi all.

I hope this is the right section for this question:

If things go to plan, from Sept I will earn a total of €2274 a month BEFORE tax.

Am I right in saying that you can earn €1300 a month tax free and anything after that is taxed at 20% up to €2666 (after that tax is 42%).

Therefore, €2274 - €1300 = €974 <--- this will then be taxed at 20%

So, €974 * 0.2 = €194.80 <--- montly tax to be paid?

€974 - €194.80 = €779.20

Then add this to tax free income, €1300 + €779.20 = €2079.20.

Is this right???

By the way I will only be working 16hrs a week! :P :P

MartMax

there is a very handy wages calculator :

http://www.esatclear.ie/~grabe/TaxCalc/TaxCalc.html

nice and useful.

Mart

kluivert

You calculated IT the old way when they used allowances.

Gross Income per Month is 2274

Taxed at 20% = 454.80

Tax Credits: Single Person
Paye = 1630
Paye = 1490
Total = 3120

Per Month = 260

Tax - Credit (454.80 - 260) = Total Tax Paid (194.80)

Gross income = 2274
Less: Paye = (194.80)
Net Income after Paye = 2079.20

Same as what you got above.

Dont forget PRSI as well depending on what class you come under.

py2006

there is a very handy wages calculator :

http://www.esatclear.ie/~grabe/TaxCalc/TaxCalc.html

nice and useful.

Mart

Thanks for that! Am not sure what my annual income is though! Its not a definite figure as my hours vary each month.

py2006

Cheers Kluivert! I forgot about PRSI!

Peace

kluivert wrote:

You calculated IT the old way when they used allowances.

Gross Income per Month is 2274

Taxed at 20% = 454.80

Tax Credits: Single Person
Paye = 1630
Paye = 1490
Total = 3120

Per Month = 260

Tax - Credit (454.80 - 260) = Total Tax Paid (194.80)

Gross income = 2274
Less: Paye = (194.80)
Net Income after Paye = 2079.20

Same as what you got above.

Dont forget PRSI as well depending on what class you come under.

Fair play kulivert, i never understood the tax credit system unit you explained it with figures... Big up.