Is your extra income taxable?

You may receive extra income that you have to pay tax on. You must declare this income on your Income Tax Return. Some examples of extra income are:

• social welfare payments
• rental income
• tips and gratuities
• shares
• income from trusts
• deposit interest
• dividends
• maintenance payments
• nixers
• pensions and foreign pensions
• stocks (liable to Capital Gains Tax)
• fees and commissions
• or
• estate income (personal representatives are taxable on the income of the estate during the period of administration). 

Tips received directly from patrons are also treated as additional taxable income. 

Nixers are a common term for after hours, or part-time, work. Some examples are consultancy work, giving grinds or selling goods at a market. You must pay tax on this income.

How do I declare this extra income?

If you receive payments under €5,000, use myAccount to declare this income on your Income Tax Return, as follows:

1. Sign in to myAccount
2. Click 'Review Your Tax 2020-2023'
3. Select the relevant tax year and request a Statement of Liability
4. Click 'Complete your Income Tax Return'
5. Under the 'Non-PAYE income' section, add the relevant income you are declaring and include all details
6. Click 'Next' and then 'Sign and submit' to finish the process. 

If you receive payments over €5,000 a year, you will need to register for self-assessment. Once you register, file your Form 11 Income Tax Return on Revenue Online Service (ROS).

Extra income earned can be submitted on a Form 11 by clicking on the tabs that relate to the source of that income. Examples of this include:

• rental income
• foreign income 
• and 
• other Irish income

To calculate tax on your additional income, you will need to understand how tax credits and rate bands work.