Earned Income Tax Credit / Employee Tax Credit
Earned Income Tax Credit
The
[broken link removed]Earned Income tax credit (PDF, 79KB) can be claimed by self-employed individuals and proprietary directors who are ineligible for the Employee tax credit. The maximum relief is €550 for 2016 and €950 for 2017. Where an individual’s earned income is below €2,750 in 2016 and €4,750 in 2017, the tax credit is restricted to 20 per cent of the income. For example, total earned income (2016) €2,000 @ 20% = €400 (max.).
Employee Tax Credit
The
Employee tax credit can be claimed by an individual in receipt of an income which is taxable under the PAYE system. For example wages, salary, occupational pensions, Department of Social Protection pensions, etc. The maximum amount of the tax credit for 2016 and 2017 is €1,650. Where an individual’s income is less than €8,250, the tax credit is restricted to 20 per cent of the income. For example, total income €7,000 @ 20% = €1,400 (max.).
Note: Where an individual has income that qualifies for the Earned Income tax credit and the Employee tax credit, the combined tax credits cannot exceed €1,650.