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Rent-a-room tax

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  • 24-11-2013 12:03pm
    #1
    sohappy
    Registered Users Posts: 665 ✭✭✭


    I know the income from a rented room is tax free under 10k but does USC and prsi apply to the income?


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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    sohappy wrote: »
    I know the income from a rented room is tax free under 10k but does USC and prsi apply to the income?

    Providing your gross income (aka absolutely every penny that changes hands- including billshares for utilities etc) is less than 10k- then the total income is exempt from income tax, PRSI, the health levy and the income levy, or the universal social charge.

    Go one penny over the 10k- and all the above apply to *all* the income- not just that portion over 10k.

    Note- you still have to declare the income in an annual tax return.


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    #3
    wirelessdude01
    Registered Users Posts: 8,423 ✭✭✭wirelessdude01


    The_Conductor wrote: »
    Note- you still have to declare the income in an annual tax return.

    Never knew this. Have been renting rooms for the past 6 years, Ooops. Could this result in a fine?


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    #4
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    wirelessdude01 wrote: »
    Never knew this. Have been renting rooms for the past 6 years, Ooops. Could this result in a fine?

    In theory they could issue you with a fine.
    In practice- it never ever happens.
    You haven't incurred taxable income- so its a revenue neutral exercise from Revenue's perspective. They have far bigger fish to fry than someone who mistakenly hasn't declared rent-a-room income under the threshold.

    Just make sure you declare it going forwards- its better to have it all accurate and above board.

    You can make a retrospective amendment to tax returns for the previous 3 years- however I suspect even Revenue would advise you not to bother.

    If you're worried at all- give them a ring- they're actually surprisingly nice and helpful on the phone (I'm not being sarcastic- they are some of the easiest to deal with and most helpful people I've ever communicated with over the phone.........)


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