Optimize Your Finances: A Guide to Key Tax Reliefs in Ireland
The post-Christmas bank account balance is always a depressing sight!
So, we think your bank balance deserves a nice cash boost to kick off your financial journey!
The average PAYE refund is €1,880 - so it's definitely worth applying for your tax refund today.
It's your money, let's go get those tax reliefs!
Let's take a look at some of the tax reliefs in Ireland you may be entitled to claim:
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1. Medical, non-routine dental and nursing home expenses
First up is medical expenses. Many people don't realise that they could be entitled to claim tax relief on their medical and dental expenses.
The average Irish family spends €2,600 on medical and dental expenses, like GP bills, physio bills and prescriptions, each year. Thankfully, many of these medical expenses are eligible for tax relief, such as doctor and consultant fees, prescriptions, physiotherapy, maternity care and more! Check out our complete guide on claiming tax relief on healthcare expenses.
When claiming on your medical expenses you will need your receipts and documents relating to them, so be sure to keep those safe!
You will be entitled to claim relief at the standard rate of tax - 20% (nursing home expenses can be claimed at your highest rate of tax - 40%), for any eligible medical expenses.
2. Flat Rate Expenses
A Flat Rate Expense is a type of tax relief in Ireland that is available to people in certain occupations. Many people are entitled to them, but because not many people are aware of them, thousands of euro in Flat Rate Expense tax credits go unclaimed every year.
Flat Rate Expenses are aimed at relieving the costs associated with work, like uniforms, tools and equipment.
Check out the full list of Flat Rate Expenses here.
Depending on the taxpayer's personal circumstances, up to 40% tax relief can be claimed for flat rate expenses.
Don't forget, you can claim Flat Rate Expenses for the past four years, if you have never claimed for them before!
Want to Get What You're Owed?
Claim Your Flat Rate Expenses Here!
3. Emergency Tax
You may have been emergency taxed if you changed employment or started your first job recently.
When emergency taxed, all of your income is taxed at 40%. Thankfully, as this is a higher rate of tax than you would usually pay, you can claim it back.
If "emergency basis" or tax code "E" is marked on your payslip, you will know that you have been emergency taxed.
Taxback can help you claim these tax reliefs in Ireland.
4. Working from home tax relief
Have you been working from home? If so, you may be entitled to e-worker tax relief in Ireland. E-worker relief is a tax relief on expenses that people could incur while working from home on either a full or part-time basis. Expenses include heating, electricity and broadband.
Although it is not a legal obligation, some employers will pay €3.20 tax-free per day to their employees to cover additional working from home costs.
If an employer does not pay the €3.20 per day, the employee can claim a tax refund, as detailed below:
- Electricity and heating - 10% of the cost of electricity and heat can be claimed for the days spent working from home
- Broadband – In general, 10% of the cost of broadband can be claimed based on the number of days spent working from home over the year. However, you can claim 30% of the cost for time spent working from home during the pandemic
Tax relief due on these expenses is up to 40%, depending on the employees personal circumstances.
For example, if your heating bill is €1,000, you can claim 10% of that, i.e. €100. You are entitled to tax relief of 20% or 40% on the €100 (so you will be due a refund of €20 or €40, depending on your personal circumstances).
If you have worked from home, you are entitled to e-worker relief for the past four years.
Want help claiming your work from home tax credit?
5. Tuition fees
Have you paid college fees for yourself or a loved one in recent years? If so, the good news is that there are tax reliefs in Ireland that many college fee payers may be entitled to.
There's a lot of expenses associated with college, like textbooks, new laptops etc. so it's definitely worthwhile to try to claim back these tax reliefs where you can!
Third level fee payers are entitled to get tax relief in Ireland on tuition fees that are paid for certain education courses. For example, undergraduate and postgraduate courses.
Tax relief is granted at the standard rate of tax - 20%. Please note, there is a €7,000 per course limit of fees that you can claim relief on.
See more about tax relief available on tuition fees here.
6. Year of marriage tax relief
Were you one of the few people to get married in 2020? Or if you have been married in the past four years, you could be entitled to the year of marriage tax relief.
You and your spouse will be treated as single people for tax purposes for the duration of the year you were married. If the tax you pay when being treated as single people is more than the tax payable if you were taxed as a married couple, you can claim the difference as a tax refund.
In short, only the tax deducted in the months after you got married will qualify for a tax refund.
Marriage and Tax - all you need to know here.
Download your FREE Irish Tax Guide
How to claim your tax back in Ireland online today!
Taxback can help you to claim all tax reliefs in Ireland that you are entitled to. Our team of tax experts can complete a four year tax review for you.
We will ensure you receive your maximum tax refund in Ireland and we'll even transfer your refund straight into your bank account!
Our average refund is €1,880 - so what's stopping you? Apply today and claim your tax reliefs!
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