Taxation of the Pandemic Unemployment Payment (PUP)

  1. Overview
  2. How PUP received in 2020 is taxed
  3. How PUP received in 2021 is taxed

How PUP received in 2020 is taxed

During 2020 the payment of PUP was not taxable at the time of receipt from Department of Social Protection (DSP). This ensured that individuals could register for and start to receive PUP payments as quickly as possible.

In September 2020, Revenue stated that PUP tax liabilities would become due at the end of 2020. The tax liability could either be:

  • collected interest free, by reducing the employee’s tax credits over four years, starting in January 2022.
  • fully or partially pay any Income Tax (IT) and Universal Social Charge (USC) liability through the Payments/Repayments facility in myAccount. (Where the liability is partially paid the balance could be collected interest free over four years.)

Taxation of PUP received in 2020

In January 2021, Revenue made a Preliminary End of Year Statement available to you. The Preliminary End of Year Statement shows:

  • detail of any income received and reported by your employer or employers
  • information on the amount of PUP you received
  • a preliminary calculation of your IT and USC for 2020
  • whether your tax position is balanced, underpaid or overpaid for the year.

What you need to do

You have an opportunity to update your personal record in myAccount. You can do this by completing an Income Tax Return to:

The additional information that you provide may impact your final IT or USC position.

What happens if you owe IT?

You can either fully or partially pay any IT liability through the 'Payments/Repayments' facility in myAccount.

Alternatively, Revenue will collect the full or any remaining liability, interest free, by reducing your tax credits over four years (2022 to 2025).

The reduction of tax credits will start in January 2022.

Next: How PUP received in 2021 is taxed