Taxation of DSP payments

Taxable DSP payments you need to declare

The Department of Social Protection (DSP) makes the payment to you without deducting tax. If you receive a taxable payment from DSP which is not directly reported by them to Revenue, you must declare this income to us. 

The following payments from the DASP are taxable. Information about these payments is not transferred from the DSP to Revenue:

  • Blind Person’s Pension
  • Carer’s Allowance
  • Carer’s Benefit
  • Death Benefit Pension
  • Deserted Wife’s Allowance
  • Deserted Wife’s Benefit
  • Disablement Benefit, when payable in the form of a pension rather than a once-off payment
  • State Pension (Transitional)
  • Widow, widower’s or Surviving Civil Partner’s Non-Contributory Pension

If you receive any of these payments you must declare it to Revenue. Not declaring this income may result in a tax liability. 

How to declare a DSP payment

PAYE

To declare a taxable payment:

  • sign in to myAccount
  • select ‘Manage your Tax 2020’ link in PAYE Services
  • select ‘Add new income’ in the Your additional income section.
  • click 'show more' and select the correct DSP payment or payments.

For each DSP income you are declaring you will need to confirm the date the payment started and the current weekly amount. You can also declare this income through MyEnquiries

If you are unable to use myAccount contact your Revenue office.

Note

If you need to declare income for a previous year, please complete an Income Tax return.

Self-employed

If you are self-employed, you must include details of any taxable DSP payments on your Form 11 tax return. You need to pay the tax due when making your annual IT payment.

Please use the Revenue Online Service (ROS) to submit your tax return.

Next: How DSP payments are taxed