“Do I have to pay taxes on the money I made renting out our house this summer?”

QI rented my house for two weeks in the summer to someone looking for vacation rentals on a Facebook group. I told my guest and his family that I would give her a discount if she paid cash. She paid me a total of €2,000 for the two weeks but when it came to payment we had a dispute and she said she would report me to the tax office for tax evasion. Since I may have been reported to the IRS, my husband says we should file a tax return for the money I received this summer. What should I do?

Maura, Co Donegal

A Failure to report your income to the Inland Revenue could be considered tax evasion. This would result in you having to pay not only the outstanding tax debt but also interest on that debt. In addition, you may face penalties and, in some cases, tax evasion may result in criminal prosecution.

However, you are still within a reasonable time to report your earnings.

The due date for filing the tax return and paying the tax depends on when you earned the income. Since you earned the income in the summer of 2022, you must report that income and pay any associated tax liabilities to the IRS by October 31, 2023.

Since you have rented out your entire house, you must determine how you will treat the income for tax purposes.

Rental income like yours is usually taxable as either trading income if you’re trading as a going concern, such as a

While all profits earned are generally taxed in the same way, there are strict differences in what expenses can be deducted from that income.

If you get it wrong, the tax difference could be significant.

It appears that you are a casual writer and therefore not in the business of renting out the property on a regular basis.

If so, the rules for claiming expenses are more generous. In your case, only expenses such as cleaning fees, breakfast costs and a reasonable allocation for the electricity and heat used by the guests are allowed.

Commissions paid to online booking sites can also be deducted, however the Facebook group you use would not qualify.

The income you earn must be reported to the IRS by completing an income tax return—either a Form 11 for self-assessing taxpayers or a Form 12 for PAYE employees.

If you are filing jointly with your husband and he files a tax return, you can include your income in his tax return.

Otherwise, you must register for income tax self-assessment by using the eRegistration service or by completing a TR1 form, both of which are available on the IRS website.

i am self employed Do I have to pay taxes on PUP payments I’ve received?’

Q I am a 31 year old Self-employed Communications Consultant and my work has dried up during parts of the pandemic. I applied for the Pandemic Unemployment Payment (PUP) from early December 2021 to late February 2022. My accountant is just finishing my 2021 tax return and I was surprised when she told me that I have to tax the PUP payments I received for the last month of December 2021. Can that be true?

Andrew, Co Cork

A Like many social benefits, PUP payments are taxable, but they are not subject to the Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).

In 2021 and 2022, employees who received PUP payments were taxed in real-time.

This means that the tax due on PUP payments to an employee has been collected by reducing the employee’s tax credit and tax rates.

However, since you are self-employed, it was not possible to collect tax on your PUP payments in real-time, so the tax due is calculated when your 2021 income tax return is filed. You have until November 16th to pay and submit if you do so online.

The actual amount of your income tax liability in 2021 depends on your total income for that year, including the amount of PUP payments you received.

Your tax credits reduce your tax liability, including the amount due for the PUP. Depending on the amount you earned in 2021, if your preliminary 2021 tax payment is less than your 2021 income tax liability, you likely have to pay tax.

https://www.independent.ie/business/personal-finance/must-i-pay-tax-on-cash-i-earned-renting-out-our-house-this-summer-42121958.html “Do I have to pay taxes on the money I made renting out our house this summer?”

Fry Electronics Team

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