Many PAYE workers do not know what should be included on an income tax return or indeed what reliefs or credits they may be entitled to. Although the number of people claiming tax relief has trebled over the last number of years, there is still €420m remaining unclaimed annually.
This section sets out some of the main reliefs available to Irish taxpayers. Claims may be made for the previous four tax years.
Most common tax credit that people don’t claim:
Joint Assessment is usually the most favourable basis of assessment for a couple in a marriage or civil partnership. One of the spouses or civil partners – the assessable spouse or the nominated civil partner, assumes the responsibility for the joint tax liability. The other spouse or civil partner is called the non-assessable spouse or the other civil partner. The Assessable Spouse or Nominated Civil Partner.
Home Carer Tax Credit
A couple in a marriage or civil partnership where one spouse or civil partner is the Home Carer and cares for one/more dependent persons.
One Parent Family Tax Credit
A One-Parent Family Tax Credit is a tax credit that is available to a single parent, or a person who has custody of and
maintains a child who is living with him or her. This can include someone who is single, widowed, a surviving civil
partner, deserted, separated (from spouse or civil partner), divorced or whose civil partnership has been dissoved
Single Person Child Carer Credit
The Single Person Child Care Credit (SPCCC) is a tax credit that is available to a single person who is a parent of a child or who has custody of and maintains a child who is living with him or her.
Incapacitated Child Tax Credit
The tax credit can be claimed where a claimant proves that he or she has living at any time during the tax year any child who is permanently incapacitated either physically or mentally from maintaining himself/herself.
Age Tax Credit
Any person who is aged 65 or over at any time during the tax year.
Blind Persons Tax Credit
An individual who is blind at any time during the tax year. If you are married or in a civil partnership and you are both regarded as blind, the tax credit is doubled. The tax credit is not due in respect of children who are regarded as being blind.
Flat Rate ( employment ) expenses
These are expenses that are incurred in the performance of the duties of the employment and are directly related to the’nature of the employee’s employment’. A standard flat rate expenses allowance (deduction) is set for various classes of employee.
You can claim tax relief on fees paid for approved Third Level, Foreign Languages and Informational Technology
courses in respect of any person as long as you have paid the qualifying fees.
Tax relief is available to aclaimant who has paid a premium to an authorised fund or society on behalf of himself/herself, children and dependents.
Interest Relief on Home Loans
Tax relief is available in respect of interest paid on a loan acquired and used for the purchase, repair or improvement of a sole or main residence. Relief is granted at the standard rate of tax.
Lump Sum Payments ( retirement Redundancy )
Lump sum payments on a redundancy or a retirement qualify for special tax treatment – they may be exempt from tax or may qualify for some relief from tax.