Revenue wants to give you money — here is how to claim it
Many taxpayers are missing out on valuable credits due to lack of awareness. Picture: PA
When Finance Minister Michael McGrath was announcing details of Budget 2024 recently, he was keen to highlight the low take-up of the renters' tax credit.
For anyone who is not an accountant, seeing the words ‘tax credit’ can result in panic. The fear of trying to figure out how to claim tax reliefs and the perception that it is extremely complicated can often stop someone in their tracks when they think about claiming money back.
According to Revenue, up to 481,000 people in Ireland paid too much tax last year. It estimates that amounts to a massive €313m. With a little bit of effort, however, you could in fact have around €650 extra in your pocket if you attempt to claim tax credits that are available to you.
A recent Taxback.com survey found that almost half of respondents believe the reason that Irish people do not claim what they are owed is down to a simple lack of awareness around tax refunds and eligibility.
Robert White of White & Co Accountants in Cork said that while there are some commonly-known credits that PAYE workers should be availing of, there are also some valuable credits or “low-hanging fruit” that many taxpayers are missing out on.
“If your employer pays your private medical insurance on your behalf, we often see employees have not claimed up to €500 a year in credits that could have been availed of. This can be worth up to €2,000 in tax refunds if retrospectively claimed for the past four years," he said.
The money-saving experts at Bonkers.ie say the one thing that should be at the top of everyone’s to-do list is applying for their tax refunds.
“Many people overpay each year by not claiming back what’s rightfully theirs. And with inflation at a near 40-year high, claiming a tax refund is a quick and easy way to put some money back into your pocket and help cope with the rising cost of living,” said Daragh Cassidy of Bonkers.ie.
Firstly, although you can claim back over four years, it is worthwhile getting into the habit of claiming for the previous year at the start of the next. Get a box or folder and pop all of your receipts and bills as you get them into that if you think they may be relevant for your tax claims at the end of the year.
You won’t need to include these with your claim but in case Revenue decides to do an audit of your accounts, then you will need them.
After this, you can head over to the Revenue website and complete an income tax return by signing into Revenue’s myAccount system. Revenue has put a lot of work into trying to make the system as user-friendly as possible.
So here’s the technical part. Once you are set up on the myAccount system, head to PAYE Services and click on ‘review your tax’. Then request a ‘statement of liability’, and click on ‘complete income tax return’. It is there that you can then claim tax credits that apply to you. You then submit your form and the money will be transferred to your bank account if your claim is successful. Some tax credits are given automatically by Revenue, such as the PAYE tax credit, so you don’t have to do anything to claim that.
According to Marian Ryan of Taxback.com no two people have the same tax profile, so exactly what you will be entitled to claim will very much depend on your personal circumstances.
“If you pay your taxes, you should reap whatever rewards are available,” she said.
Here are 10 tax credits you can claim from Revenue.
You can claim back 20% of what you paid for any doctor’s visit, prescriptions you’ve collected, physio appointments, counselling sessions, hearing aids, IVF, acupuncture. The list goes on. It doesn’t matter about the cost.
You can also claim relief for non-routine dental care such as crowns, veneers, and root canals. Get a Med2 form from your dentist. Also if your employer pays your health insurance policy you can claim relief on that cost.
This is a new or resurfaced one that was just announced in Budget 2024. Revenue hasn’t yet released details as to how it will work but said it is a ‘once-off measure’. Ms Ryan said she believes it will operate in a similar way to the ‘Stay and Spend’ tax credit.
“I imagine that people would need to get their 2022 mortgage interest statement and their 2023 mortgage interest statements in order to confirm how much more mortgage interest they paid in 2023. Then, if their mortgage was between €80,000 and €500,000 on the 31st of December 2022, they can claim a tax refund of 20% of the [mortgage interest] difference capped at a refund of €1,250. In order to avail of the full €1,250 the mortgage interest they paid in 2023 would need to be €6,250 more than 2022,” said Ms Ryan.
Anyone paying rent in a private property will be eligible to claim €750 for 2024 and 2025. This has been increased from €500.
In addition, if you are paying rent on behalf of a child who is living away from home to attend college, it’s worth knowing that you can also claim the rent credit. This also applies when you’re renting a residential property which is different to your principal private residence, such as if you need to rent that property for the purposes of work or to attend an approved course.
The main requirement to claim this tax credit is that your landlord must have registered the property with the RTB.
This is essentially a tax relief which many workers can get to cover the cost of equipment such as tools, uniform, or stationery, and can be worth a few hundred euro each year.
There are many qualifying occupations such as teachers, nurses, carpenters, and pharmacists. According to Taxback.com a teacher can claim €518 while a shop assistant can claim €121. The full list of occupations is on Revenue.ie. Also, you can claim the allowance for the last four years.
“The point to note here is that you do not automatically get this allowance into your pocket, you have to go and get it,” said Ms Ryan.
This now applies to a lot of people and if you work remotely you can claim back 30% of the cost of your electricity, heat, and broadband through this relief. Revenue has a handy guide on its website to help you determine how much you can claim for.
This credit can be claimed once you, your spouse, or civil partner reaches the age of 65 and it works out at €245 for a single or widowed person.
Anyone who has been diagnosed by their doctor as coeliac or diabetic can claim tax relief of 20% on the cost of food that is specifically tailored for these types of diets.
Income tax relief of 20% can be claimed on nursing home expenses covered by you and not by the HSE if the nursing home provides 24-hour on-site nursing care. Additional expenses can also be claimed for employing a qualified home nurse. You cannot claim tax relief on anything paid for by the HSE.
Anyone undertaking an undergrad, postgrad, or foreign language or IT course can claim this relief. Parents can also claim for their children.
The maximum amount of fees on which you can claim tax back for education is €7,000 per person, per course. For full-time students, however, there is no tax relief on the first €3,000 spent on tuition fees for the 2023/2024 academic year.
The Home Carer’s credit can be claimed by families where one parent is at home minding the children, and the credit will be increased from January next year to €1,700. The Single Person Carer credit is a tax relief for single parents with whom the child or children live.
This tax credit can only be claimed by one primary claimant and is worth €1,650 per year. It currently cannot be shared between both parents.
