How to claim back tax for deed of covenant

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giolla

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I set up a deed of covenant for my mother last year. But am unsure now how to reclaim tax on this for her and for me.
 
giolla said:
I set up a deed of covenant for my mother last year. But am unsure now how to reclaim tax on this for her and for me.
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It's quite simple. Say the deed is for 5K. You give her 4K (having applied 20% tax).

Your total income will be reduced by 5K, although you still have to pay the 1K withheld from your mother to Revenue.

You give the 1K to Revenue.
Your mother pays tax on her income incl 5K covenant income. If she is tax exempt etc., she can get refund of 1K from Rev.

So you need to send in a tax return for you and your mother, attaching covenant forms etc. for the benefit to be applied.

That's it
 
any idea how what forms to use to apply for this I just looked at revenue site and got completly confused. Do you use the mnormal 54 claims form.
I have to claim tax back for stand along PRSA also so would like to do both together.
There is an other form r185 this has to be signed my both parties. Would this cover me for claiming tax as my pps number goes onto it.
 
First you fill out the covenant form and sign and witness it.
Then you give the money to your mother each year (ideally by cheque so that you can prove you did) but deduct 20% from the amount that the covenant says you should give her.
Then fill out a from 12 and send a copy of all the documents with it to your tax office at the end of the tax year.
Your mother will have to submit a form 54 also, again with copies of all the covenant documents.
You will both get a tax refund about 8 weeks later.
I send in a photocopy of the cheque and my bank statement showing that the cheque had been cashed. I am about 4 years into my covenant now and I can't remember why I do this. I think that Revenue asked me for it in year one.
 
Thank you dmkelly I am still a little confused.
Should I just complete the R185 only and send a copy of the deed to the tax office? What is the form 12?
See info on revenue website:
"If you are the person receiving the covenant (the Covenantee) you should send your written claim together with the original Deed of Covenant and forms R185 and 54D to your local Revenue office (see Contact Locator below). If you are the person paying the covenant (the Covenantor) you should send the original Deed to your local Revenue office."
 
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