Taxation of social welfare payments

Taxation of social welfare payments - Crowe Ireland

Generally, all income from any source, is considered to be income for tax purposes. This includes certain amounts paid to an individual by the Department of Employment Affairs and Social Protection (DEASP). Taxable DEASP payments are subject to Income Tax but not USC or PRSI.

The taxable payments from the DEASP are as follows:

  • Blind Person’s Pension
  • Carer’s Allowance
  • Carer’s Benefit
  • Death Benefit Pension
  • Deserted Wife’s Allowance
  • Deserted Wife’s Benefit
  • Disablement Benefit (when payable in the form of a pension rather than a once-off payment)
  • Short-Term Enterprise Allowance
  • State Pension (Contributory, Non-Contributory or Transitional)

While DEASP payments are taxable sources of income, certain payments are exempt from the charge to tax. The full list of exempt payments can be found here.

For any additional information or help, contact a member of our tax team.