Over 50 percent of Irish workers are missing out by not claiming the tax credits that they are entitled to every year.
You can claim tax credits or reliefs to reduce the amount of tax you have to pay. However, many people are missing out on big tax savings every year.
Experts at Taxback.com said the average Irish tax refund is €1,880. According to the Revenue: ”In order to claim additional tax credits, or declare additional income for a previous year, you must complete an Income Tax Return."
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Here are some of the expenses you can claim back in tax that you may not be aware of:
College fees
It’s possible to claim tax reliefs on third level tuition fees paid for undergraduate or postgraduate courses and even IT and foreign language courses.
There is no tax relief on the first €3,000 spent on a full-time student’s tuition fees or the first €1,500 of a part-time student. But if you are claiming for more than one student, you will get full tax relief on the tuition fees for the second, third and fourth students etc.
You can claim tax relief as long as you have paid the fees, either on your own behalf or on behalf of another person.
How much could you get back?
You will receive relief at the standard tax rate of 20 per cent. The maximum amount you can claim is €7,000 per course, per person, per academic year. If you subtract the first €3,000 you are left with a possible €4,000 to claim at 20 percent - which is €800 in tax relief.
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Working from home
More people can qualify for the working-from-home tax relief - which can get you 30 percent off your electricity, heating and internet bills in 2022 if you work from home on a part-time or full-time basis. Although you can only claim for the days that you actually work from home.
How much could you get back?
If your household bills for heating, electricity and broadband come to €2,000 in 2022 and you work at home full-time for 220 days of the year, you could claim 30 percent tax relief on €1,205 of your bill.
This means €361 of your bill is eligible for tax back but the amount you actually get back depends on your rate of tax, either at 20 or 40 percent, which would be a total of €72 or €144.
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Medical bills
You can claim 20 percent tax relief on a long list of medical and health expenses such as GP appointments, prescriptions, and treatment from a qualified psychologist or psychotherapist for your mental health. You are eligible for a refund if you paid the bill so it could be your own or a family member's medical expenses.
The list of expenses even includes physiotherapy and even gluten-free food for people with coeliac disease, if it is prescribed by a doctor. Any medical appliances such as wheelchairs, stair lifts, and hearing aids also qualify for tax back.
How much could you get back?
You get a refund of 20 percent of the cost, meaning if your medical bills throughout the year added up to €500, you would get €100 back as tax relief.
Dependent relative
You may claim this credit if you care for a relative at your own expense to help meet the costs of everyday living.
You are entitled to claim for any elderly dependent relatives, such as a parent, or a relative of your spouse or civil partner, whether they live in Ireland or not.
The allowance has recently increased from €70 to €245 per relative from 2021, meaning that this can add up to a substantial amount if you care for a number of people.
How much could you get back?
The annual Dependent Relative tax allowance is €245 for one dependent, €490 for two dependents, €735 for three dependents, and €980 for four dependents.
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Nursing home expenses
This area can help with huge amounts of tax relief as nursing home costs are so expensive. If you are paying on behalf of an elderly relative, you can claim for any fees paid over the last four years. Nursing home fees can be claimed at your highest rate of tax (up to 40 percent) if the nursing home provides 24-hour on-site nursing care.
You can also claim relief on the cost of employing a professional home nurse - but this can only be claimed at the standard rate of 20 percent.
How much could you get back?
Nursing homes fees can amount to around €50,000 a year. If you can claim back tax at the higher rate of 40 percent, you could be eligible for tax relief of up to €20,000.
Dentist bills
You can claim tax relief on non-routine dental expenses, such as crowns, veneers, root-canal treatment and orthodontic treatment like braces. You can claim for a tax refund for dental expenses for either yourself or a family member so your child’s braces quality for tax relief, as long as it was you who paid the bill.
How much could you get back?
You get a refund of 20 percent of the cost, so if your child’s braces cost €4,500 you would get as much as €900 back as tax relief.
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