Social welfare Ireland: Five tax credits that you need…

Social welfare Ireland: Five tax credits that you need to know about in 2023

As the New Year gets closer, many people may be looking ahead to 2023 and how they can make it the best year ever.

A popular New Year’s resolution is to save money in the hopes of being able to invest in something big or to have more cash to splash out.

Reviewing and claiming tax credits is something that a lot of people forget to do, which means they could be missing out on credits they’re eligible for.

Here are five tax credits to take note of as we head into the New Year that could be very helpful.

Employee tax credit

Those who receive income that is taxable under the Pay As You Earn, or PAYE, system can claim the Employee tax credit.

It includes wages, benefit in kind, occupational pensions and Department of Social Protection (DSP) income.

Those who are an Irish resident and are in receipt of a social security pension received from another EU Member State or of wages from abroad where tax was deducted under a PAYE-type system are also eligible for the Employee tax credit.

The amount you can claim will depend on your yearly income.

Rent tax credit

This credit was introduced as part of Budget 2023 and will be available for the 2022 to 2025 tax years.

As it is a new credit, it can be claimed from January 2023 and those looking to receive it will have to claim it themselves.

There are a number of conditions to this credit, all of which can be found on Revenue.ie.

Rent tax credit may be available where you pay rent for your principal primary residence, another property you use to facilitate your attendance at work or on an approved course and a property used by your child to facilitate their attendance on an approved course.

Age tax credit

This credit is automatically granted in the year a person, or their spouse or civil partner, turns 65. It can also be claimed through Revenue.

Tax credit for a single applicant is €295 per year and for a jointly assessed or separately assessed couple, it is €490.

Blind person’s tax credit

A person who is blind or has impaired vision during the tax year can claim the Blind person’s tax credit. If you are married or in a civil partnership and you are both blind, you receive a doubled tax credit.

A single person or a person in a marriage or civil partnership who is blind will get €1,650 per year, whereas €3,300 will be paid when both people in a marriage or civil partnership are blind.

This tax credit can be claimed through Revenue.

Dependent Relative tax credit

This tax can be claimed when a person maintains a relative at their own expense. They can claim for a relative, or a relative of their spouse or civil partner.

“Maintaining a relative at your own expense means meeting the costs of everyday living. You must substantially maintain your relative where they cannot maintain themselves,” a statement from Revenue said.