Tax Credits for PAYE Employees

The type and the amount of tax relief allowed have changed frequently in the last few years.  We have included the main details here, but be advised that small variations from year to year may significantly impact your situation.

2007 & 2008: The full amount of your medical expenses can be claimed.  The tax relief stands at 41% for higher rate tax payers and 20% for standard rate tax payers.

2009 & 2010: The full amount of your medical expenses can be claimed.  The tax relief is at up to 20%, regardless of whether you are a higher or standard rate tax payer.

 

Tax Refund Claims for Medical Insurance

What can be claimed?

20% off the cost of medical insurance through the Private Medical Insurance Tax scheme can be claimed.

If you pay for medical insurance directly or it is paid by you through your employer, this tax relief is granted at source i.e. you are charged a reduced premium (80% of the gross amount) by the insurer.

However, if your employer pays for all or part of your (or your family’s) medical insurance, tax relief is not granted at source. You will need to claim for this tax relief through a tax refund application.

If you have not received this tax credit in the past, you can claim for the last 4 years.

 

 

Home Carers Tax Credit

Who can claim?

A home carer is where one of a married couple cares for a dependent person, typically a child or an elderly/disabled adult.

 

How much can be claimed?

To claim the full tax allowance, the home carer’s income must not exceed €5,080 in the year.

2007:    Up to a maximum €770.

2008 - 2010:    Up to a maximum €900.

2011:  Reduced to a Maximum of €810

Home Carers Tax Credit is included in our Budget and Refund Calculators

 

Single Parent Tax Credit

Who can claim?

The one-parent family tax credit can be claimed if you are a single mum or dad and you have a child who is dependent on you and resides with you for at least one night in the year.

In addition to children aged 18 or under, you can also receive this for an adult dependent in further education/training, and for incapacitated individuals - in most cases.

You do not qualify for one-parent family tax credit if:

•    You are a person qualifying for the married person's tax credit or

•    You are a person living together with another person as man and wife

 

How much can be claimed?

The one-parent family tax credit varies across the years from €1,580 in 2005 up to €1,830 for the tax year 2010 

 

Rent Relief & Tax Refunds

Who can claim?

Rent relief is available for rent paid for your primary residence only.  It is available if you are renting from a Private Landlord or Rental Agency, but not if you are renting from your parent or from a Housing Authority.  

 

How much can be claimed?

This depends on your circumstances, but for single people under the age of 55 the rent relief tax credit for 2010 is €400.

For married people this is doubled to €800, as it is for single people over 55. Use our Rent Relief Calculator to find out more

 

Incapacitated Child Tax Credit

Who can claim?

Where you have a child who is physically or mentally incapacitated in some way, in most cases you will be eligible for extra tax relief and can claim certain expenses.  It is available for adult children where the condition was diagnosed during childhood and prevents them taking an active part in the work force.

 

The disabilities which qualify include Blindness, Deafness, Cystic Fibrosis, Spina Bifida and acute Autism – this list is not exhaustive.

 

How much can be claimed?

The Incapacitated Child Tax Credit is available for each child with a condition, with the amount of the relief increasing from €3,000 in 2007 to €3,660 in 2010.

 

 

Maternity Benefit & Tax Refunds

Who can claim?

Maternity Benefit is paid to mothers while they are on maternity leave from work if they have paid a certain number of PRSI contributions in the previous years.  It’s available whether or not your employer continues to pay you during your maternity leave.  

 

How much can be claimed?

You can claim Maternity Benefit to a maximum of €280 per week for 26 weeks.  It can be paid directly to you, or through your employer.

 

 

Tax Refund claims for Employment Expenses

Who can claim?

Employment expenses are allowed at fixed rates for employees working in certain employment sectors, such as education, retail, hospitaility, construction and healthcare.

 

How much can be claimed?

Depending on your role, you may be able to reduce the amount of your employment income that is taxable by over €1,000.

 

 

Tax Refunds for Bins and Service Charges

Who can claim?

You can get 20% off the cost of your service charges tax relief (usually bin charges) through a tax refund.

 

How much can be claimed?

This is available up to a maximum of €80 per year - that's €320 over 4 years

Tax Relief for Bincs and Service Charges are to be abolished in 2011 - but you will still be able to claim tax back for 2007 through 2010 for any of these charges.