Illness Benefit (excluding any increase for qualified children) is considered as income for tax purposes and is taxed from the first day of payment.
Illness Benefit is paid directly to you without any deduction of income tax. The taxation of your payment is dealt with as follows:
If you are employed, your employer will take your Illness Benefit into account for PAYE purposes.
If you are unemployed or become unemployed, Revenue will take account of the amount of Illness Benefit paid to you, where relevant, when they adjust your tax credits or review the tax affairs of your spouse or civil partner.
More information on the taxation of Illness Benefit is available at your local tax office or at www.revenue.ie.