Brendan Burgess
Founder
- Messages
- 53,770
This is an update and expansion of an earlier thread by ClubMan. Please post questions or corrections. I have to get the balance right between a checklist and a comprehensive guide, so I am including only the main limitations and qualifiying criteria.
Check the [broken link removed] for more detail
Each relief has a leaflet which you can find [broken link removed]
To claim any of these reliefs, you do not need to make an annual return. Contact the Revenue or register on line with [broken link removed]
Are you getting the right personal tax credit?
Single Person: €1,630 (2006), €1,760 (2007)
Married Person: €3,260 (2006), €3,520 (2007) (being jointly assessed)
Widowed Person: €2,130 (2006), €2,310 (2007) (if you don’t have dependent children)
One-Parent Family Tax Credit: €1,630 (2006), €1,760 (2007)
If you have a qualifying dependent. See [broken link removed].
If you are married, make sure you are being jointly assessed
[broken link removed]
PAYE Tax Credit: €1,490 (2006), €1,760 (2007)
If you are a PAYE employee other than a proprietary director
Home Carer’s Tax Credit: Maximum €770 (2006, 2007)
If one spouse stays at home minding a child, a person over 65, an incapacitated person
Tax credit at standard rate – 20% - Is this correct?
Married couples who are jointly assessed.
Whose income does not exceed €41,000 (2006), €4,300 (2007)
The home carer’s income is not in excess of €5,080 (2006, 2007)
Good summary on CitizensInformation.ie
[broken link removed]
Dependent Relative Tax Credit: €80 (2006, 2007)
No tax credit is due if the relative’s income exceeds €11,913
Age Tax Credit Single/widowed: €250 (2006)/€275 (2007); Married: €500 (2006)/€550 (2007)
If you are aged 65 or over.
For married couples, only one person needs to be over 65
Incapacitated Child Tax Credit: €1,500 (2006), €3,000 (2007)
This tax credit of €1,500 (2006)/€3,000 (2007) can be claimed by the parents if a child has a permanent physical or mental disability
Incapacitated Person – allowance for employing a carer – Up to €50,000
This tax allowance of up to €50,000 at your highest tax rate is available where a person is employed to care for a person with a disability including a child. One or more family members of the person being cared for can claim the allowance.
[broken link removed]
Note: is this up to date with Budget 2007?
Nursing Home Fees
Tax relief is claimed under the general scheme for tax relief on medical expenses. Maintenance in an approved nursing home qualifies for relief. Most nursing homes are approved.
A long-term patient in a nursing home who pays tax under PAYE can apply to have the expenses allowed in his or her tax credit certificate.
If you pay for a parent's stay in a nursing home, you can claim this relief.
Health/Medical Expenses Relief
Qualifying and otherwise unreimbursed medical expenses in excess of €125 per year; €250 if claiming for 2 or more people. From 2007 no excess applies.
Expenses for you, your spouse, your children or dependent relatives
Excludes routine dental and ophthalmic care
Includes prescribed drugs
Relief available at your highest rate of tax.
[broken link removed]
Fill in [broken link removed] and [broken link removed] (for qualifying dental treatment expenditure) at the end of the tax year to claim.
Private Health Insurance (VHI, BUPA, Vivas etc.)
If your employer pays for private health insurance on your behalf it will be taxed as a benefit in kind and you are entitled to claim a tax credit equal to 20% of the gross amount. See [broken link removed].
If you pay for private health insurance directly, the premium is reduced by the tax credit at source, so you have no further claim.
Mortgage Interest
Your lender should be reducing your interest payments by the amount of tax relief you are due. Check that you are getting the right amount. [broken link removed]
First time buyers
Revenue Approved Permanent Health Benefit Schemes
not to be confused with VHI or Bupa.
These are schemes which pay you an income if you become sick sometimes known as Income Continuance Plans.
Incidentally, these schemes are usually bad value as claims are difficult to make.
You get full relief on these at your marginal tax rate.
Some employers deduct the contributions from gross pay, so the tax relief is given at source. There is no further tax credit.
Rent Relief for Private Rented Accommodation
If you pay rent to a private landlord
Relief is due at the standard rate of tax (20%) subject to the following upper limits:
Single €1,650 (2006), €1,800 (2007)
Married/Widowed: €3,300 (2006), €3,600 (2007)
Both reliefs are doubled if you are over 55
Trade Union Subscriptions up to €60
A tax credit at the standard rate of income tax (20%) is available for Trade Union subscriptions.
If your membership subscription is €100, you will get a tax credit of €20
Note: is this correct? I thought that it was a flat rated credit of €60 @ 20% = €12?
Tax Relief on Bin charges, Water Charges, Sewage Charges
You must have paid your charges on time during 2005 to claim in 2006.
Tax allowance at 20% of amount paid. (check?)
[broken link removed]
College Fees
If your children or you are going to college
Relief at standard rate (20%)
On fees up to €5,000
Max value: €1,000 (20% of €5,000)
[broken link removed]
Dirt Refunds
If you are over 65 or if you are incapacitated and your income is below a certain level, you can apply for a refund of Dirt
Expenses in employment
Revenue grant flat rate expenses tax credits for certain occupations. See [broken link removed] for a complete list
Blind Person’s Tax Credit/ Guide Dog Allowance
If you or your spouse is blind at any time during the tax year you can claim this credit of €1,500 (2006), €1,760 (2007). If both of you are blind each of you can qualify.
Relief of €825 at your highest tax rate is given annually if you or your spouse have a guide dog
and you are a registered owner with the Irish Guide Dog Association.
Revenue Job Assist
If you have been continuously unemployed for at least 12 months and are in receipt of Unemployment Assistance/Benefit, One Parent Family Payment, Blind Persons Pension, Disability Allowance or invalidity Pension for at least 12 months or Disability Benefit for at least 36 month PDFs: Leaflet - IT 58 (Employee) Leaflet - IT 59
(Employer) - For all Employer queries
Acknowledgements:
ClubMan;CCOVICH;Satanta;[broken link removed]
Check the [broken link removed] for more detail
Each relief has a leaflet which you can find [broken link removed]
To claim any of these reliefs, you do not need to make an annual return. Contact the Revenue or register on line with [broken link removed]
Are you getting the right personal tax credit?
Single Person: €1,630 (2006), €1,760 (2007)
Married Person: €3,260 (2006), €3,520 (2007) (being jointly assessed)
Widowed Person: €2,130 (2006), €2,310 (2007) (if you don’t have dependent children)
One-Parent Family Tax Credit: €1,630 (2006), €1,760 (2007)
If you have a qualifying dependent. See [broken link removed].
If you are married, make sure you are being jointly assessed
[broken link removed]
PAYE Tax Credit: €1,490 (2006), €1,760 (2007)
If you are a PAYE employee other than a proprietary director
Home Carer’s Tax Credit: Maximum €770 (2006, 2007)
If one spouse stays at home minding a child, a person over 65, an incapacitated person
Tax credit at standard rate – 20% - Is this correct?
Married couples who are jointly assessed.
Whose income does not exceed €41,000 (2006), €4,300 (2007)
The home carer’s income is not in excess of €5,080 (2006, 2007)
Good summary on CitizensInformation.ie
[broken link removed]
Dependent Relative Tax Credit: €80 (2006, 2007)
No tax credit is due if the relative’s income exceeds €11,913
Age Tax Credit Single/widowed: €250 (2006)/€275 (2007); Married: €500 (2006)/€550 (2007)
If you are aged 65 or over.
For married couples, only one person needs to be over 65
Incapacitated Child Tax Credit: €1,500 (2006), €3,000 (2007)
This tax credit of €1,500 (2006)/€3,000 (2007) can be claimed by the parents if a child has a permanent physical or mental disability
Incapacitated Person – allowance for employing a carer – Up to €50,000
This tax allowance of up to €50,000 at your highest tax rate is available where a person is employed to care for a person with a disability including a child. One or more family members of the person being cared for can claim the allowance.
[broken link removed]
Note: is this up to date with Budget 2007?
Nursing Home Fees
Tax relief is claimed under the general scheme for tax relief on medical expenses. Maintenance in an approved nursing home qualifies for relief. Most nursing homes are approved.
A long-term patient in a nursing home who pays tax under PAYE can apply to have the expenses allowed in his or her tax credit certificate.
If you pay for a parent's stay in a nursing home, you can claim this relief.
Health/Medical Expenses Relief
Qualifying and otherwise unreimbursed medical expenses in excess of €125 per year; €250 if claiming for 2 or more people. From 2007 no excess applies.
Expenses for you, your spouse, your children or dependent relatives
Excludes routine dental and ophthalmic care
Includes prescribed drugs
Relief available at your highest rate of tax.
[broken link removed]
Fill in [broken link removed] and [broken link removed] (for qualifying dental treatment expenditure) at the end of the tax year to claim.
Private Health Insurance (VHI, BUPA, Vivas etc.)
If your employer pays for private health insurance on your behalf it will be taxed as a benefit in kind and you are entitled to claim a tax credit equal to 20% of the gross amount. See [broken link removed].
If you pay for private health insurance directly, the premium is reduced by the tax credit at source, so you have no further claim.
Mortgage Interest
Your lender should be reducing your interest payments by the amount of tax relief you are due. Check that you are getting the right amount. [broken link removed]
First time buyers
Revenue Approved Permanent Health Benefit Schemes
not to be confused with VHI or Bupa.
These are schemes which pay you an income if you become sick sometimes known as Income Continuance Plans.
Incidentally, these schemes are usually bad value as claims are difficult to make.
You get full relief on these at your marginal tax rate.
Some employers deduct the contributions from gross pay, so the tax relief is given at source. There is no further tax credit.
Rent Relief for Private Rented Accommodation
If you pay rent to a private landlord
Relief is due at the standard rate of tax (20%) subject to the following upper limits:
Single €1,650 (2006), €1,800 (2007)
Married/Widowed: €3,300 (2006), €3,600 (2007)
Both reliefs are doubled if you are over 55
Trade Union Subscriptions up to €60
A tax credit at the standard rate of income tax (20%) is available for Trade Union subscriptions.
If your membership subscription is €100, you will get a tax credit of €20
Note: is this correct? I thought that it was a flat rated credit of €60 @ 20% = €12?
Tax Relief on Bin charges, Water Charges, Sewage Charges
You must have paid your charges on time during 2005 to claim in 2006.
Tax allowance at 20% of amount paid. (check?)
[broken link removed]
College Fees
If your children or you are going to college
Relief at standard rate (20%)
On fees up to €5,000
Max value: €1,000 (20% of €5,000)
[broken link removed]
Dirt Refunds
If you are over 65 or if you are incapacitated and your income is below a certain level, you can apply for a refund of Dirt
Expenses in employment
Revenue grant flat rate expenses tax credits for certain occupations. See [broken link removed] for a complete list
Blind Person’s Tax Credit/ Guide Dog Allowance
If you or your spouse is blind at any time during the tax year you can claim this credit of €1,500 (2006), €1,760 (2007). If both of you are blind each of you can qualify.
Relief of €825 at your highest tax rate is given annually if you or your spouse have a guide dog
and you are a registered owner with the Irish Guide Dog Association.
Revenue Job Assist
If you have been continuously unemployed for at least 12 months and are in receipt of Unemployment Assistance/Benefit, One Parent Family Payment, Blind Persons Pension, Disability Allowance or invalidity Pension for at least 12 months or Disability Benefit for at least 36 month PDFs: Leaflet - IT 58 (Employee) Leaflet - IT 59
(Employer) - For all Employer queries
Acknowledgements:
ClubMan;CCOVICH;Satanta;[broken link removed]
