How to organise your taxes during the COVID-19 Pandemic?

Let’s call a spade a spade!

Most people would rather do anything other than spend time thinking about their tax situation. And so, the topic of tax gets pushed further and further on the long finger.

But it’s important to remember that, by getting a better handle on your taxes, you can potentially save yourself a lot of money.

When you consider that the average tax refund a Taxback.com customer receives is €1,880, it’s easy to see why it’s worth spending a little time to ensure you’re claiming everything you’re due.

The average Irish tax refund is €1,880

GET YOURS NOW

Most of us are stuck indoors these days. So what better time to start investigating how much you can claim back?

If you’ve never claimed your tax back before, we’ve put together this handy guide to help you get started.

Research your entitlements

There are so many different tax credits and reliefs out there it can be hard to know where to begin!

But the reality is that most people are missing out on claiming something they’re entitled to.

Start by doing your research. There are lots of useful materials out there which can help you better understand your entitlements.

Why not check out our complete guide to Irish tax?

Some of the most common expenses that can be claimed include:

Medical and dental expenses – You can claim tax relief at 20% on a range of medical costs including visits to your GP, ambulance fee, IVF, prescriptions, physiotherapy, diagnostic procedures, eye care, non-routine dental expenses and much more
Home carers tax credit – If you or your spouse stay at home to care for a dependent, you can potentially claim a tax credit which is worth €1,600 for 2020.
Single person child carer credit – This tax credit is for any person who lives with a child who qualifies for the credit for more than 6 months, they are then the primary claimant. The amount for 2019 was €1,650. If not claimed for 2016-2019 it could equate to a refund of €6,600 or more.
Flat rate expenses – Thousands of workers across Ireland are entitled to claim flat rate expenses. And yet, every year this is one of the most underutilised tax reliefs. Flat rate expenses are a type of tax relief that are available to people in certain occupations. The intention is to help with costs associated with work, for instance; uniforms, tools and equipment. Exactly how much you can claim depends on your occupation. For more information check out our blog here.
Nursing home fees or paying for the cost of a carer – If you pay for the cost of nursing home fees for yourself or others you may be eligible for relief at your highest rate of tax of up to 40%.
Tuition fees – Relief for tuition costs incurred in respect of 3rd level education – undergraduate and postgraduate courses.

Dig out your old receipts

Did you know you can go back 4 years to claim your tax back? It’s true!

You will need to account for every expense incurred when claiming your tax back, so you will need to hold on to all of your receipts and bills to prove you paid for the expenses related to the claim. You will also need to keep these receipts for 6 years after you apply for your refund.

Working from home tax relief

Census 2016 indicated that 100,000 people in Ireland worked from or mainly from home. This figure is likely to be considerably higher in 2020 due to COVID-19.

Thousands of homeworkers are entitled to claim ‘e-worker tax relief’.

This aim of this relief is to help workers to cover some of the costs they incur while working from home, such as - electricity, heating and broadband.