| | Section A: Personal Circumstances |
| 1. |
Are you Married or Single?
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If you are single you can claim a single persons tax credit of 1,830. A single person can earn 35,400 (this is the Standard Rate Cut off Point (SRCOP)) where earnings up to this are taxed at 20% and above this amount are taxed at 41% Please note you will need to advise the tax office if you get married.
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If you are married there are 3 options of taxation for you to choose from and you may decide to choose one option over another if for e.g. your spouse works part-time or is a stay at home parent:
The options for taxation are:
- Assessment as a single person (i.e.
you are both still taxed as single people)
- Separate assessment
- Joint assessment/aggregation.
There are implications and benefits for choosing each of these options which is clearly explained
Click here for more information.
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| 2. |
Are you Separated/Divorced?
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If you have recently become separated or divorced you
should notify Revenue as soon as you can. How you were taxed
in the year of separation/divorce depends on how you were
taxed when you were married (i.e if you were singly, jointly
or separately assessed.) . The payment of maintenance and the
type of maintenance payments are important in deciding which
tax arrangement will apply in the subsequent years:
Click here
for more information.
A maintenance payment is where a spouse makes
regular (e.g. weekly, monthly) or a lump sum payments to
support the other spouse and/or children. The manner in which
maintenance payments are taxed is dependant on whether the
payments are A) voluntary or legally enforceable and B)
whether they are attributed either for the benefit of the
spouse and/or child. It can make a big difference to the
amount of money actually received and it is advisable to seek
expert tax advice tax before maintenance payments are agreed.
Voluntary payments: These payments that are made
where there is no legal agreement in place. Voluntary payments
are ignored for tax purposes. The spouse who makes the payment
is not entitled to tax relief, nor is the spouse who receives
the payment taxed on it. Both spouses are taxed as single
people on their other income. However, If you are paying
voluntary maintenance and this is the main income of your
spouse, then you (the payer) may claim the married persons tax
credit, rather than the single persons credit, but you will
still have the tax rate band for a single person.
Legally enforced maintenance agreement: such
as a Separation Agreement or Court Order the
maintenance payments are taxed as follows: The person making the payment
for the benefit of the spouse is not deducted tax and is entitled
to a tax credit for the payment. For the spouse
receiving this payment this is regarded as a taxable source
of income. Payments are subject to PRSI and the Health levy,
and the spouse making the payment is entitled to claim a
PRSI and Health levy refund at the end of the tax year.
Please contact your local
Revenue office to
find out more. Both spouses will be taxed as single persons,
but can opt to be treated as a married couple for income
purposes only if they are both resident in the State
and maintenance payments are legally enforceable.
Click here for
more information.
Maintenance payment for child(ren):
A maintenance payment made for the benefit of a child(ren) is ignored for tax purposes. The payment is made without deduction of tax by the paying spouse. The paying spouse is not entitled to a tax credit and the receiving spouse is not taxed on the payment. The one- parent tax credit may be claimed by either or both parents if the child is resident with that parent for the whole or part of the tax year. Overnight access is sufficient to qualify once the parent claiming the credit also contributes to maintaining the child. Please note this cannot be claimed where a spouse is in receipt of the married persons tax credit.
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| 3. |
Are you Widowed?
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Widowed people can avail of a tax credit of 3,660 in the year of their bereavement and 2430 in subsequent years if there are no children. If a widowed parent has dependent children they can claim a "widowed parent's tax credit" for the 5 years after the year of your spouse's death. They may also be entitled to the "one-parent family tax credit" for as long as they have any dependent children.
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| 4. |
Are you over 65?
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If you are over 65 you can avail of an Age Credit which is 325 in 2008. Married couples are entitled to 650 tax credit.
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| 5. |
Do you have children?
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You could be entitled to childcare benefits of 166 per
month for first and second child and 203 per month for third
and subsequent children. There is also an Early Childcare
Supplement of 1,100 available for all children under 6 years.
Click Here
for more information Please note also depending on the amount
of children you have, if your weekly family Net income (i.e
take home pay) is less than amounts specified below you may be
entitled to an additional Family Income Supplement
| From January 2008, if you have: |
And your weekly Net family income is
less than: |
| One child |
490 |
| Two children |
570 |
| Three children |
655 |
| Four children |
760 |
| Five children |
870 |
| Six children |
970 |
| Seven children |
1,090 |
| Eight children |
1,170 |
If you are getting FIS you may also be
entitled to the Smokeless Fuel Allowance, Back to School
Clothing and Foot Ware Allowance. For more information on
Family Income Supplement Please Click here
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| 6. |
Are you a one-parent family/single parent?
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If you have a dependent child, and you are unmarried, widowed, separated, divorced or deserted, you can claim a One-Parent Family
Tax Credit in addition to your personal tax credit. There is also an increase in your standard rate tax band. This means that you can earn more before you start to pay the higher rate of tax.
To avail of this you should contact your local Revenue office or visit www.revenue.ie for more information.
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| 7. |
Are you (or your spouse) a stay at home parent?
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If you or your spouse is a stay at home parent you can avail of a Home Carer's Tax Credit of 900 per year. Only one tax credit is due irrespective of
the number of persons being cared for. If the home carers income is greater than 5,080 per year they cannot apply for this. Also married couples who are taxed as single people do not qualify.
Please Click here for more information.
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| 8. |
Are you paying college/tuition fees for either yourself or a dependant?
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You can claim tax relief at the standard rate of 20% for qualifying third level tuition fees.
There is a list of qualifying courses for which this relief is available.
There is an upper limit of 5,000 on each course- so for e.g.
if a parent is paying college fees for two children they can make significant savings by claiming tax relief on them.
Please Click here for more information or to see a full list of courses that qualify.
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| 9. |
Do you look after a dependent relative e.g. an incapacitated child, elderly relative?
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You can claim Dependent Relative Tax Credit if you maintain at your own expense:
- a relative, including a relative of
your spouse, who is unable to maintain himself or herself as
a result of old age or ill-health
- a widowed father or mother of
either yourself or your spouse, irrespective of the state of
his/her health
- a son or daughter who lives with you and on whose services you must depend as a result of old age or ill health
If your dependent relative incurs health expenses and you contribute to them, you may be entitled to claim tax relief for the amount you paid.
You can claim relief on expenses like doctors' bills, maintenance or treatment in hospital, prescribed drugs and medicines, etc.
If your dependent relative is living in an approved nursing home and you contribute to the nursing home fees,
you may also be entitled to claim some of the expenses involved.
Parents with an incapacitated child can claim a tax credit of 3660 a year while those with a dependent relative can receive a credit of 80
if their income does not exceed 13,473.
An incapacitated person can claim a tax credit of 50,000 if they employ a carer.
Please Click here for more information.
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| 10. |
Do you claim for medical or dental expenses that you incur for yourself, your spouse youre your children?
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You can claim a tax relief for qualifying medical, dental & drugs expenses incurred by you, your spouse or dependant. You can claim tax relief at your highest rate of tax (known as marginal rate). This is particularly valuable for example if your marginal rate of income is 41% as you will get 41 for every 100 spent on qualifying medical expenses. Parents with children receiving orthodontic treatment for example can claim significant costs back. You can also claim a tax relief on your private health insurance please note that this is given at source and is not shown on your tax credit certificate.
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You can claim a tax relief for qualifying medical, dental & drugs expenses incurred by you, your spouse or dependant. You can claim tax relief at your highest rate of tax (known as marginal rate). This is particularly valuable for example if your marginal rate of income is 41% as you will get 41 for every 100 spent on qualifying medical expenses. Parents with children receiving orthodontic treatment for example can claim significant costs back. You can also claim a tax relief on your private health insurance please note that this is given at source and is not shown on your tax credit certificate.
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| 11. |
Are you entitled to the blind person's tax credit?
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An individual who is blind at any time during the tax year may claim a tax credit of 1830. Where both spouses of a married couple are blind, the tax credit is doubled. There is also additional tax relief available for a guide dog.
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| 12. |
Could you be entitled to a Family Income Supplement?
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Family Income Supplement (FIS) is a weekly payment for families, including lone parent families, at work on low pay. Depending on the size of your family the Family Income Supplement limits are 480 for a family with one child to 1090 for a family with 8 children or more.
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Family Income Supplement (FIS) is a weekly payment for families, including lone parent families, at work on low pay. Depending on the size of your family the Family Income Supplement limits are 480 for a family with one child to 1090 for a family with 8 children or more.
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| 13. |
Do you give money on a regular basis to another person without getting any benefit in return? E.g. an elderly person, permanently ill person etc.
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You may be entitled to tax relief on this sum of money know as "Tax relief on Convenants".
In order to avail of this relief a legally binding "deed of Covenants" must be drawn up between the two persons involved (giver and receiver)
- Tax relief on covenants is only
available where sums of money (i.e. Convenants) are paid to
specific groups.
- Person who are permanently
incapacitated
- Permanently incapacitated minor
child if paid by person other than the parent
- Persons who are aged 65 years or
over
- A university or college for the
purposes of research or the teaching of the natural sciences
- Certain bodies established for the promotion of human rights.
For more information Click here
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You may be entitled to tax relief on this sum of money know as "Tax relief on Convenants".
In order to avail of this relief a legally binding "deed of Covenants" must be drawn up between the two persons involved (giver and receiver)
- Tax relief on covenants is only
available where sums of money (i.e. Convenants) are paid to
specific groups.
- Person who are permanently
incapacitated
- Permanently incapacitated minor
child if paid by person other than the parent
- Persons who are aged 65 years or
over
- A university or college for the
purposes of research or the teaching of the natural sciences
- Certain bodies established for the promotion of human rights.
For more information Click here
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| 14. |
Do you contribute more than 250 a year to a charity?
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Tax relief is available on donations of 250 or more in any one tax year to eligible charities from both individual and corporate donors. Tax relief is applied to these donations at the donors marginal rate of tax
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| 15. |
Do you have a
disability and as a result need to use certain aids and appliances?
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People with both physical and mental disabilities can
receive a VAT refund on aids and appliances
e.g:
- Walk-in baths designed for people
with disabilities
- Commode chairs
- Lifting seats and specified chairs
designed for people with disabilities
- Tele-text
- Braille books
- Hoists and lifts designed for incapacitated people,
including stair lifts.
Click here for
information on how to avail of this
There is a separate Disabled Drivers and Disabled Passengers
Scheme which provides a range of tax reliefs for the purchase
and use of a vehicle by disabled drivers and disabled
passengers in Ireland.
Click here for more
information. |
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| | Section B: Housing |
| 1. |
Do you have a mortgage or are you renting accommodation?
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Relief is given at 20 % on mortgage interest payments paid on loans used to purchase, repair or maintain your principal private residence. It is given at source (i.e. by your mortgage provider) up to a limit of 10,000 for first 7 years for a single -first time- buyer or 20,000 for married or widowed people that are first time buyers. For non-first time buyers tax relief for single buyers is 5,080 and for married or widowed people it is 20,000. When you are taking out a new mortgage you will need to fill out a TRS1 form - you should ask your mortgage provider for this when processing your new mortgage.
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You can claim tax relief at the rate of 20% up to a limit of 2,000 for a single person under the age of 55 and 4,000 over 55. The amount is doubled if you are married or widowed. To apply for rent relief you in respect of rent paid you will need to complete a form Rent 1 on www.revenue.ie
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| 2. |
Are you renting a room in your private accommodation?
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You may be entitled to rent relief. You can rent out your room in your home and the income is exempt from tax up to a limit of 10,000 in 2008. This will not affect your mortgage interest relief
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| 3. |
Do you pay local authority charges e.g. Bin charges?
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Tax relief is given at the standard rate of 20% on all local authority charges, such as bin charges, domestic sewage disposal and domestic water supplies from your local authority and also private refuse collectors. This relief is granted to those who pay their service charges in full and on time in the previous calendar year. Please note you do not need to reapply for this each tax year.
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| | Section C: Employment |
| 1. |
Do you have a company pension scheme or your own private personal pension?
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If you pay pension through your wages you are automatically getting tax relief as it is non taxable deduction from your gross pay. If for e.g. you decide at the end of the year to pay an additional lump sum (e.g. your bonus) into your pension or AVC fund you will need to get a receipt of proof of investment from your pension provider and then apply to the tax office for tax relief.
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Tax relief is available for contributions to personal pensions and
the amount of the relief is age-related. This relief is more generous as you
get older:
| Age | Amount which qualifies for relief |
| Under 30 years | 15% of net relevant earnings |
| 30 to 39 years | 20% |
| 40 to 49 years | 25% |
| 50 to 54 years: | 30% |
| 55 to 59 years | 35% |
| 60 and over | 40% |
There is also a maximum limit of net relevant earnings that can be
used in order to claim tax relief on personal pension contributions (currently
262,382).You will need to apply to your local we
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| 2. |
Could your earnings exceed 8,341 in a month (or 1925 in a week) e.g. on a once
off basis through an annual bonus, commission etc.?
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If you earnings exceed 8,341 in a month or 1925 in a week you will pay an additional PRSI levy of .5%. You may claim this back if your earnings do not exceed 100,100 per annum. This is often overlooked especially by people who may receive an annual bonus or receive commission but there earnings are under the 100,100 threshold.
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If you earnings exceed 8,341 in a month or 1925 in a week you will pay an additional PRSI levy of .5%. You may claim this back if your earnings do not exceed 100,100 per annum. This is often overlooked especially by people who may receive an annual bonus or receive commission but there earnings are under the 100,100 threshold.
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| 3. |
Do you pay into a Trade Union?
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A tax credit at the standard rate of income tax is available for trade union subscriptions of up to 350 for 2008. The amount of the tax credit is 70 for 2008.
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| 4. |
Could you be entitled to an "expense allowance" for uniforms, tools, clothing etc. in your profession?
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From engineers, electricians, nurses, teachers, journalists, hotel staff and many more. There are over 100 occupation categories where you can claim an annual expense allowance. These expenses such as uniforms, tools etc. are not usually not paid by the employer but are essential for your work. There is a full list of occupations for which Revenue have agreed an annual expense rate (called PAYE expense allowance) with the amount of allowance entitlement. In order to claim this tax credit you must contact your local tax office.
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From engineers, electricians, nurses, teachers, journalists, hotel staff and many more. There are over 100 occupation categories where you can claim an annual expense allowance. These expenses such as uniforms, tools etc. are not usually not paid by the employer but are essential for your work. There is a full list of occupations for which Revenue have agreed an annual expense rate (called PAYE expense allowance) with the amount of allowance entitlement. In order to claim this tax credit you must contact your local tax office.
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| 5. |
Do you work from home / e-worker?
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When working from home (e-working) you will incur certain
expenditure such as additional heating and electricity costs.
An employer may make payments up to 3.20 per day to employees
without deducting PAYE and PRSI. This does not prevent you
making a specific expenses claim where the actual expenditure
is in excess of this amount. For more information
click here
Please also note If you work from home your and you require equipment such as computers, printers, scanners, fax machines, office furniture and software to enable you to work from home your employer may provide you with such equipment without imposing a a benefit-in-kind charge on you. Also the provision of a telephone line for business use will not give rise to a benefit in kind charge. Please note that this equipment should be used primarily for business and only incidental personal use.
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| 6. |
Does your employer pay your health insurance or do you pay your own private health insurance?
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People who have their health insurance paid by their company have to pay benefit in kind and need to apply separately to get a corresponding tax credit.
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If you are a member of a private health insurance scheme (e.g. VHI, Quinn-Healthcare and Vivas), you may get a tax credit for medical insurance premiums paid by you for yourself, your spouse, children or dependant relative once you provide the insurance provider with the necessary information. This tax credit is granted at source (TRS), which means you will pay 20% less on your yearly bill with the onus is on the insurer to claim back the remainder from the Revenue Commissioners.
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How do I find out more or claim for my
tax credits?
- Log on to www.revenue.ie and select
PAYE self service option
- Call or write to your local Revenue
Office
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Click here to find your
nearest office.
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