WHAT CAN I CLAIM

Most employees in Ireland pay tax through the PAYE (Pay As You Earn) system, where your employer deducts tax directly from your wages for Revenue.

Every PAYE worker gets tax credits, which include reliefs you may be able to claim depending on your circumstances.

Even if you’ve left the country but have worked in Ireland within the last 4 years or you only worked part of the year, you can still claim!

Claiming back overpaid tax:

There are many situations where you may have over paid tax on your earnings, such as your employer putting you on the wrong tax code or if you only worked for part of a year. My Tax Refund will review the tax you have paid over the last 4 years and claim any refunds that may be due.

There is a range of tax credits and reliefs that we will check if you are eligible to claim back, most of them you’ve probably never heard of before!

Claiming back overpaid USC

At My Tax Refund, we check for overpayments of USC due to working more than one job or only working part of the year. If you earn under €13,000 pa, you are not liable to pay USC. However, if your weekly income is above a certain amount, Revenue can automatically assume you earn this level of income all year round and deduct USC accordingly which means you end up being overcharged. So, if you only worked for part of the year during the last 4 years make sure you fill in My Tax Refund’s online form so we can get it back for you!

FLAT RATE EXPENSES

There are lots of occupations that can claim for flat rate expenses such as:

Tradesmen Healthcare Staff Bar Staff
Plumbers Nurses Doctors
Public Servants Retail Staff Teachers
Veterinary Nurses Pharmacists Bus Drivers
Train Drivers Defence Forces Dentists
Engineers Mechanics Restaurant Staff
Hotel Staff Firefighters Engineers
Carpenters Home Help Electricians

There are just too many occupations to list so why not fill out our quick and easy online form here and find out if you are due a tax refund!

What can I claim for?

TAX RELIEFS

  • Medical Expenses
  • Non-routine Dental Expenses
  • Medical Insurance Relief
  • Tuition Fees
  • Flat Rate Expenses
  • Work from Home Tax Relief
  • Personal Retirement Savings Accounts Relief (PRSA)
  • Additional Voluntary Contributions (AVC’s)
  • Income Continuance
  • Employing a Carer Relief
  • Nursing Home Expenses
  • Other PAYE Expenses

TAX CREDITS

Tax credits reduce the amount of tax you pay each year. Your tax is calculated as a percentage of your income – 20% tax is owed on the first €35,300 you earn and anything over this amount is then taxed at the higher rate of 40%. Tax credits are further deductions to reduce the amount of tax that you have to pay.

Everyone resident in Ireland is entitled to Personal Tax Credits. You may also be entitled to extra tax credits – below are some examples of tax credits that you may be entitled to:

Tax Credits 2020 2021
Single person €1,650 €1,650
Married person or civil partner €3,300 €3,300
Employee Tax Credit (formerly known as the PAYE tax credit) €1,650 €1,650
Earned Income tax credit *€1,650 €1,650
Widowed person or surviving civil partner qualifying for Single Person Child Carer Credit €1,650 €1,650
Widowed person or surviving civil partner (without dependent children) €2,190 €2,190
Widowed Person or Surviving Civil Partner in year of bereavement €3,300 €3,300
Single Person Child Carer Credit €1,650 €1,650
Incapacitated Child Credit €3,300 €3,300
Blind Tax Credit

Single person

Married – one spouse or civil partner blind.

Married – both spouses or civil partners blind

€1,650

€1,650

€3,300

€1,650

€1,650

€3,300

Widowed person or surviving civil partner with dependent child tax credit.

Bereaved in 2020

Bereaved in 2019

Bereaved in 2018

Bereaved in 2017

Bereaved in 2016

N/A

€3,600

€3,150

€2,700

€2,250

€1,800

€3,600

€3,150

€2,700

€2,250

€1,800

N/A

Age tax credit

Single, widowed or a surviving civil partner.

Married or in a civil partnership

€245

€490

€245

€490

Dependent relative tax credit €70 €245
Home carer tax credit €1,600 €1,600

 

Example 1

Ciara has an income of €30,000 in 2020. As she is below the 40% tax threshold of €35,300, all of her income in taxed at 20%.

€30,000 x 20% = €6,600 – this is the amount of tax that would be due on Ciara’s salary of €30,000 before we take into her account her tax credits.

Most taxpayers are entitled to 2 tax credits worth €1,650 each, they are known as the Personal Tax Credit, and the PAYE Tax Credit. These amounts are taken off Ciara’s total tax bill for the year.

€6,600 – €3,300 = €3,300

So, Ciara’s tax liability for 2020 would be €3,300 after all her tax credits are taken off.

Example 2

Ryan has an income of €45,000 for 2020, as he is over the 40% tax threshold of €35,300, part of his income will be taxed at 20%, and the rest of his income will be taxed at 40%.

First €35,300 x 20% = €7,060

Remainder of €9,700 x 40% = €3,880

Total tax owed – €7,060 + €3,880 = €10,940

Ryan also has both of his tax credits totalling €3,300, so we take these amounts off the tax he owes to revenue:

€10,490 – €3,300 = €7,190

So, Ryan’s total tax liability for 2020 would be €7,190 when all tax credits are taken off.

Example 3

Claire is a single parent who earned €28,000 in 2020, so all of her income is taxed at 20% as she is under the tax threshold.

€28,000 x 20% =  €5,600

Claire has her standard two tax credits work €1,650 each, but as she is a single parent, she is also entitled to the Single Parent Tax Credit (SPCC). This tax credit is worth and additional €1,650, so her total tax credits are €4,950 for the year.

€5,600 – €4,950 = €650

So, Claire’s total tax liability for 2020 would be €650 when all tax credits are taken off.

Example 4

Jennifer and Stephen are married with one child, but Jennifer is the only one working. She has a salary of €40,000 for 2020. As she is married, she is entitled to the extended 20% tax rate of €44,300 compared to the usual €35,300 that a single person is entitled to.

€40,000 x 20% = €8,000

As Jennifer is married, she has the PAYE tax credit worth €1,650, but since her husband is not working, she can use his Personal Tax Credit to reduce her tax. This brings her Personal Tax Credit to €3,300. As she is the only spouse working, and she is also entitled to claim the Home Carer tax credit as they has a child, which is worth an additional €1,600 in 2020.

In total, Jennifer now has €6,550 in tax credits that she can use to reduce her tax bill.

€8,000 – €6,550 = €1,450

So, Jennifer’s total tax liability for 2020 would be €1,450 when all tax credits are taken off.

WORK RELATED EXPENSES

Claiming tax relief on expenses is for the self-employed, right? Wrong! If you have to spend money on your employment, keep a hold of your receipts as you may be due tax back!

Just pop your occupation into our online form and we will check what tax credits you can claim.

MEDICAL EXPENSES

Each year, the average Irish family spends around €1800 on medical and dental expenses. What most people don’t know is that you can claim tax relief on many of these costs

You can make a claim for tax relief for the previous 4 years, so it might be time to start digging out those receipts!

Below is a list of common medical and dental costs that are eligible for tax relief.

Doctors and Hospital Fees
It’s never nice when we have to go to the doctor, but every cloud has a silver lining!

You can claim 20% back on the cost of GP, Doctor and Consultant fees or treatment in a hospital. Just send us in your receipts to info@mytaxback.ie

You can also claim back on the following when referred by a qualified practitioner.

  • Physiotherapy
  • Acupuncture
  • podiatry
  • chiropody
  • Counselling

Prescription Costs
You can claim 20% back on the cost of medicines prescribed by your Doctor, Dentist or Consultant.

X-Rays and Scans
You can also claim tax relief if you are in need of any diagnostic procedures such as X -rays, MRI scans or CAT scans. If you have been referred by a doctor or medical practitioner, then you can claim 20% tax relief.

Physiotherapy
If you have been referred for physiotherapy and had to get treatment from a chiropractor, osteopath or an acupuncturist and the work was carried out by a person who is a qualified practitioner then the costs are eligible for tax relief.

Maternity Costs
Being pregnant can be hard work sometimes but claiming back for maternity costs is not! Any costs relating to maternity care, whether in a public of private hospital, are eligible for tax relief. Maternity costs are claimed back in the year following the pregnancy so make sure to hold on to your receipts!

Transport Costs
Ambulance transport is essential in emergency situations; however, it will significantly increase the cost of your medical expenses. We have got some good news though; tax relief is available on all costs relating to ambulance travel.

Dialysis Patients
Tax relief is available for kidney dialysis patients on many costs relating to their illness, such as telephone costs, electricity costs, laundry and the purchase of medical appliances relating to their illness. You can also claim tax relief if you travel by private car to your appointments at a rate of €0.18c per km.

Optical Treatments
Many people are unaware that you can claim tax relief on optical treatments, resulting in them missing out on big tax savings! You can claim tax back on the cost of optical treatments where prescribed by a doctor, except for routine eye testing and maintenance of glasses and contact lenses. You can also claim tax relief on the costs of laser eye surgery, provided it was carried out by a qualified practitioner – Laser eye surgery.

Nursing Care / Nursing Home Costs
If you pay for the cost of nursing home fees (for yourself or others) then you are eligible for tax relief on these costs. You can claim tax back for any nursing home expenses paid over the last 4 years at the higher rate of 40%.

 

Surgical, Dental or Nursing Appliances
You can claim tax back at the standard rate of 20% on the costs of certain surgical, dental and nursing appliances such as:

  • Glucometer machines for diabetics
    • Hearing aids where they have been recommended by a practitioner
    • Orthopaedic beds and chairs where the patient suffers from a specific illness or disability
    • Wheelchair or wheelchair lift for a disabled person
    • A false eye
    • Wigs, where necessary due to illness

Dental Expenses
You cannot claim tax relief on costs relating to routine dental treatments such as scaling and filing of teeth, or for the provision and maintenance of dentures. However, there are several dental treatments which you may be able to claim some tax back for including.

  • Crowns
  • Veneers
  • Tip replacing
  • Posts
  • Inlays
  • Root canal treatments
  • Periodontal treatment
  • Orthodontic treatment (Braces)
  • Bridgework
  • Extractions

Although this list of expenses is thorough, there is lots of other treatments that can be claimed for, so if you are still unsure about claiming tax relief on medical expenses you have incurred are, contact our team of tax experts here at My Tax Refund. We advise on tax relief applicable to your expenses and help you to get your money back in a matter of weeks.

We have reclaimed over €10m in tax for our clients, and we don’t charge a penny if we don’t get you a refund, so what are you waiting for, sign up today!

If you think you may be entitled to any of the above, contact us at info@mytaxback.ie

Or

Click here to send us in an Online Application Today