COVID-19 Pandemic Unemployment Payment (PUP) tax liability

PUP is available to employees and the self-employed who have lost their job on or after 13 March 2020 due to the COVID-19 pandemic. PUP is paid by the Department of Social Protection (DSP).

PUP is not taxed in real-time (when it is paid). It is liable to Income Tax (IT) at the end of the year.

How PUP is taxed

In January 2021, Revenue will make a Preliminary End of Year Statement available to you. The Preliminary End of Year Statement will show:

  • 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

When the Preliminary End of Year Statement is available, you will 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.