Do I pay tax on Partial Capacity Benefit ?

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Depending on your circumstances, some or all of your Partial Capacity Benefit payment may be liable to income tax.  Tax is not charged on increases paid for any dependent children.

The Department pays Partial Capacity Benefit without deducting tax.  The Department does, however, notify Revenue of the taxable amount of Partial Capacity Benefit to be taken into account for income tax purposes.  This means you do not have to do anything for the correct tax to be paid. 

Information about the taxation of social welfare payments is available from Revenue and on the Jobs and Pensions page of the Revenue website

PRSI and USC are not charged on Partial Capacity Benefit payments.  

Last modified:20/05/2019