The tax-free lumpsum calculator is a tool that can help you determine your entitlement to the tax-free lumpsum. It allows you to input your financial details, such as income and pension ireland, so that it can calculate how much of your lump sum may be exempt from tax. If you’re wondering what a lump sum is or how it works, we’ve got all the info for you in this article!
A Tax-Free Lumpsum is a lump sum payment made to eligible members of the Defence Forces for service in the Irish Army, Naval Service and Air Corps. The amount of your lumpsum will depend on how long you have served in these forces and what rank you hold at the time of payment.
For example, if an officer with 10 years’ service receives an annual salary of €60k and retires on 1 July 2017 after 20 years’ service (with no reduction), they would receive a tax-free lumpsum worth:
- €100k – basic pay up to 20 years
- €40k – pro rata salary above 20 years
What is a lump sum?
The tax-free lumpsum is a one-off payment you can receive from your employer when you leave your job. It’s an amount of money that you can use to buy a product or service, and it’s tax free.
The lump sum has been around for years but has changed over time. Previously, only employees who were made redundant were eligible for this benefit–but now all employees are able to apply for it if they leave their job voluntarily (and not because they were fired).
The tax-free lumpsum, what it is and how it works
A tax-free lumpsum is an amount of money you can get from your employer, which is paid out on top of your regular salary. It’s usually a one-off payment and comes with no strings attached. The purpose of this lump sum is to give workers a financial boost so they can start saving for retirement or invest in their business idea, among other things.
You may be wondering: what exactly is a tax-free lumpsum? And how does it work? Well, we’ll answer those questions here!
Are any benefits included in the lumpsum?
In addition to the lump-sum payment, some employers may offer additional benefits such as:
- Retirement contributions (pension)
- Life insurance policies
You should check with your employer to determine whether these benefits are included in your lumpsum package.
Calculate your tax-free lumpsum today
- Calculate your tax-free lumpsum today
- Calculate the value of your lump sum
- Check if you are eligible for a tax-free lumpsum
- Check if your employer is paying you a lump sum
The tax-free lumpsum calculator can help you determine your entitlement.
The tax-free lumpsum calculator can help you determine your entitlement. The calculator is based on your current income, family size and marital status. It will give you a rough estimate of what you could receive as a lump sum payment when the new system comes into effect in 2023.
The tax free lumpsum calculator will ask questions such as:
- What is your annual net income?
- Do you have children under 18 living with you?
- Are both parents working full time?
Conclusion
If you’re looking for a way to save on taxes, then the tax-free lumpsum calculator is an excellent resource. It can help you determine your entitlement and calculate how much tax will be paid or refunded if you decide on this option instead of regular payments.
