20% or 41% tax band & claiming tax back

[whyme]

I am soon to complete my first tax returns and have done some reading on what I am entitled to etc… but one thing keeps coming up is what tax a person pay’s. Is it 20% or 41% , as 41% entitles you to claim back more.

My understanding of the tax system is for a single male you pay the first 36,000(not sure the precise figure) taxed at 20% and the remaining income at 41%. Then your tax credits are then taken away form your taxable income

I earn approx 42k per annum. Can I claim back on the higher rate or the lower rate,(e.g medical expenses) not sure as I pay tax on both rates, (and not very moch at the top table)

Sorry if this seems a stupid question but if you never ask!

 

[ClubMan]

I am soon to complete my first tax returns

What sort of return? Form 12 PAYE return or some sort of self employed or business return?

My understanding of the tax system is for a single male you pay the first 36,000(not sure the precise figure) taxed at 20% and the remaining income at 41%. Then your tax credits are then taken away form your taxable income

I earn approx 42k per annum.

If you are PAYE then see this calculator

www.taxcalc.eu

to get an idea of what your tax and PRSI/health contribution deductions should be. It does not take into consideration all credits/allowances so bear that in mind:

Income Tax rates and bands for 2008
Are you paying too much tax? A guide to tax credits

Can I claim back on the higher rate or the lower rate,(e.g medical expenses) not sure as I pay tax on both rates, (and not very moch at the top table)

For MED1 you just fill in the form and Revenue calculate what you are due back. You just need to make sure that they have all information relevant to your income, credits to which you are entitled etc.

 

[asdfg]

If you claim medicial expenses then the medicial exps are deducted from your salary and tax is calc accordingly

Lets say your medicial expenses are 1,000
Salary ........42K
Medicial exps 1K
..................41K

Tax 36K at 20%
Bal to 41K @ 41%

Less tax credits