The hundreds of thousands of people who have been receiving the weekly €350 Covid payment could be hit with a tax bill later this year.
585,000 people in Ireland are now receiving the €350 weekly payment which is costing the country €200 million every week.
But with the Taoiseach saying on Thursday that there is "no such thing as free money", recipients are reminded that the payment is taxable.
The Citizens Information website states: "Revenue has indicated that it will treat the COVID-19 Pandemic Unemployment Payment as taxable income.
"Depending on a person’s overall income during a year, the COVID-19 Pandemic Unemployment Payment may affect a person’s overall tax liability for the year."
It remains unclear whether people will be hit with one big tax bill or if it will effect tax credits over some time - with a decision yet to be made.
The Taoiseach has also warned that anyone who turns down employment will no longer be eligible for the payment.
Mr Varadkar told Newstalk Breakfast: "It will need to be changed but we’re working on that at the moment.
“There's one thing that I think people should know and that's if somebody is offered their job back and they refuse to take their job back they will lose eligibility for that payment.
“We will need to do a bit of enforcement around that.”
At the moment the payment is due to last until June 8 but it is believed it will be extended until restrictions end in August.
