The tax year is ending and with it is the opportunity to claim back a refund from Revenue for 2018.
Taxes are overpaid in millions every year due to people failing to claim back their refund for the four years previous. Once the clock strikes midnight on New Year's Eve the opportunity to do it for 2018 will have disappeared.
On average people are missing out on hundreds of euro which could be a massive bonus as people struggle with the current cost of living crisis. Another tax credit people can avail of for the year 2022 is the remote working relief which offers 30% of the cost of electricity, heat and broadband.
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Marian Ryan from Taxback.com said: “Irish people are overpaying hundreds of millions in taxes a year and so they should make it their priority to claim their tax refunds. Almost half a million people overpaid a total of €300m in income tax in 2021, according to figures provided in response to a Dail question earlier this year. At that rate, the average tax refund which people could be missing out on for 2021 is €667. Those who wait until the New Year to make a claim for 2018 will lose out as the furthest year back that they can claim a tax refund for will be 2019.”
Top tips for claiming your tax relief:
- There is a four-year limit on how far back you can claim tax refunds for, which means that you can claim tax refunds for the years 2018, 2019, 2020 and 2021 – as long as you make your claim by 31 December 2022.
- Each tax-paying tenant in a property is eligible to claim the rent credit. Tenants sharing a property together – who are not married or in a civil partnership – must claim the credit individually rather than as a group.
- To claim the rent credit, a tenant must provide details of the property and landlord – and provide a receipt for rent paid if required by Revenue to do so. Any receipt requested must be in writing and contain details such as the name of the person who paid the rent, the amount of rent paid, the name and address of the landlord or person to whom the rent was paid, and the tax reference number of the landlord. A claimant would also need to provide their name, address and PPS number, and the amount of rent paid.
- The amount of remote working relief you can claim varies, depending on the year. You can claim back 30pc of the cost of electricity, heat and broadband for 2022; 10pc of the cost of electricity and heat, and 30pc of the cost of broadband for the years 2020 and 2021; and 10pc of the cost of electricity and heat for 2018 and 2019. You cannot claim tax relief on broadband expenses you incurred in 2018 and 2019 however. You can only claim remote working relief for the days that you worked from home.
- There are two ways to get tax relief for remote working expenses. In addition to remote working relief, you’re entitled to a tax-free remote working allowance of €3.20 a day from your employer. You can still claim remote working relief if you get an allowance from your employer though any payment received from your boss to cover remote working expenses must be deducted from your claim.
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