Tax refund if you are unemployed or out of work sick

You can get a refund of tax you have already paid if you:

• Were employed and become unemployed
• Are out of work due to illness

This page explains how to get a tax refund in these situations.

If you are employed and think you may have overpaid tax, read about PAYE overpayments of tax.

For PAYE workers, your tax is spread out evenly over the year. For example, if your income is the same throughout the year, the income tax rate for each pay period will be the same and at the end of the year the total tax paid should be the appropriate amount.

However, if you become unemployed half-way through the year, for example, your income tax may need to be adjusted because:

• The tax deducted during the first half of the year was based on your income at that time
• Your reduced income in the second half of the year makes your annual taxable income lower than was expected so the amount of tax you have to pay may be lower than expected

As a result, you may be due a refund of some of the tax you paid.

The amount of tax refunded depends on:

• The length of time you have been unemployed
• The amount of tax you have paid
• The amount of tax credits you have used
• The amount of your weekly social welfare payment

If you are getting a social welfare payment, it may be taxable income.

Taxable social welfare payments include:

• Jobseeker’s Benefit (the first €13 per week is not taxable)
• Illness Benefit
• Payments under the Occupational Injury Benefit (OIB) Scheme (including Injury Benefit, Disablement Benefit and Incapacity Supplement)

These payments are liable to income tax but not Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).

If you get an Increase for a Qualified Child with Illness Benefit or with an OIB payment, the increase is not taxable for income tax.

If you are unemployed

To apply for a repayment of tax because you are unemployed, sign in to myAccount and select ‘Claim unemployment repayment’ under PAYE Services.

If you do not have myAccount, you can complete form P50 (pdf) and send it to Revenue.

If you are unemployed and due a tax refund, Revenue will refund you by cheque or to your bank account.

When to apply

You should apply 4 weeks after you become unemployed. If emergency tax was being deducted by your former employer you can apply immediately.

If you are getting another income which is taxable, you should apply 8 weeks after you become unemployed. This includes taxable social welfare payments.

If you are on unpaid sick leave

The Department of Social Protection will tell Revenue how much Illness Benefit or OIB you were paid.

Revenue will then issue you with an amended Tax Credit Certificate and let your employer know about changes to your income tax so that they can make any adjustment.