Do Seniors pay Income Tax on their Old Age Pensions in Ireland?

Not to be a smarta** but call the IRS and just simply ask them. They’re the ones who could define it for you I’m sure. I have enough trouble trying to keep up with all our stuff, let alone worry about international facts like that!
good luck.

I don’t think the person’s answer before me will do you any good since they said to call the IRS, and you are asking about Ireland.

Here’s some info that might actually help you.

Q. I began my career working in the UK for 8 years and have been working in Ireland for the last 25 years, 20 years as a full time employee and 5 years as a contractor. Can you tell me how the State pension system works where I have contributions in two countries? Also how do I qualify for the full state pension at age 65? Finally, I understand that there are two types of PRSI rates for employees and contractors. What are the differences?

A. Dependant on the number of contributions you have in each country, you may actually be entitled to a pro-rata state pension from both the UK and Ireland. In the UK, females can apply for the old age pension from age 60 whereas the age is 65 for males. In Ireland the old age pension does not become payable until age 66. Therefore a female should apply to the UK for the pension from age 60 and once she reaches age 66, she should apply to the Irish Department for an Irish Pension assuming she has paid contributions in both countries. Depending on the contributions paid in each country, she may qualify for a pension from both States. If the contributions paid in the UK are not sufficient to pay a pension, then they are aggregated with the Irish contributions for the purpose of calculating the Irish pension payable.

In the case of men, they should apply to the UK authorities on reaching their 65th birthday and the same procedure as for females applies in Ireland from the date of the 66th birthday.

As mentioned above, the old age pension in Ireland becomes payable from age 66, however there is a Retirement pension payable from age 65 where one ceases to work and satisfies the social insurance contribution conditions. It is not necessary to give up employment completely i.e. you can continue to work part time.

To qualify for the old age contributory pension, you must be aged 66 or over and satisfy the social insurance contribution conditions i.e.

you must have started paying social insurance before reaching age 56, you must have 260 full rate employment contributions paid, and you must have a yearly average of at least 48 full rate contributions paid and/or credited from 1979 to the end of the tax year before you reach age 66 – this will entitle you to a maximum pension or a yearly average of at least 10 full rate contributions paid and/or credited from 1953 (or the time you started insurable employment if later) to the end of the tax year before you reach age 66 – this will give a reduced pension.
The usual class of PRSI for employees is Class A which is comprised of the 4% contribution for PRSI and 2% for Health Levy. The 4% contribution is paid on income up to €44,180 in 2005 and the 2% contribution is paid on total income. The Class S rate applies to self employed people and is at the rate of 3% for PRSI and 2% for Health Levy and both are chargeable on the total income. These rates vary dependant on the level of the income earned in a each week.

The benefits under Class S comprise the Old Age contributory pension, the Widow’s/Widower’s contributory pension, Orphan’s contributory allowance, Maternity benefit, Adoptive benefit and the Bereavement grant. Those employees paying PRSI at Class A qualify for the above benefits/pensions together with Unemployment benefit, Disability benefit, Invalidity pension, Retirement pension and other Treatment benefits.

I’ve included a link to info about Ireland & pensions.

I don’t think the person’s answer before me will do you any good since they said to call the IRS, and you are asking about Ireland.