Irish Tax Rebates : How to claim your tax rebate

Updated: May 27

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Table of Contents


- Introduction


- Step 1: Register a MyAccount on Revenue


- Step 2: Login to MyAccount


- Step 3: Choose the relevant tax year


- Step 4: Enter personal details


- Step 5: Confirm your income is correct


- Step 6: Adding in credits to reduce tax payable (including what can be claimed)

A. Health Expenses

B. You and Your Family

C. Your Jobs


- Step 7: Review and finalise


- Tax relief upon marriage


- Top 3 reliefs utilised in Ireland


- Irish Tax Rebate Template Calculator




Introduction


Claiming a tax rebate in Ireland is not difficult for PAYE workers. We know it can be a bit

daunting to go through the mechanics of what is required, figuring out what you can claim for and what you can’t and ultimately applying for a refund from The Revenue Commissioners. Our guide takes you through the process step-by-step, outlines what you can and cannot claim and gives you a handy template to figure out if you are due a refund or not.


A lot of agencies will charge you 10 – 13% or a minimum of €30 per claim. It may not seem a lot but their fees can significantly reduce your take home rebate. We’ll show you how to do it yourself – or you can fill out our form here and we’ll do it for a fixed fee of €24.99, regardless of how large your rebate is. And remember, no rebate means no fee.


If you want to receive a free template to calculate if you are due an Irish Tax Rebate prior to completing the below steps just follow this link.



Step 1 – Register a MyAccount on Revenue


In order to begin the process of claiming a tax rebate you need to register for a Revenue Myaccount on https://www.ros.ie/myaccount-web/. It is straight forward and all you require are the following;




If you have two of the following you will be able to instantly access your account;


- Irish Driving Licence Number;


- Information from your P60; or


- Information from your Income Tax notice of assessment or acknowledgement of self-assessment


If you don’t happen to have two pieces of evidence, Revenue will issue you a password via the post. This is the first step toward getting your tax rebate.


Step 2 – Login to MyAccount


The next step is to log into your Myaccount through the following link https://www.ros.ie/myaccount-web/sign_in.html?execution=e5s1. You will need to enter your PPS Number, Date of Birth and your pre-set password.


When you login you will be greeted with the below screen (You may be asked for certain details prior to this – fill in these relatively straightforward questions). You are entitled to claim rebates for 4 years prior to the current year. For example, in 2020 you are entitled to claim refunds for 2016, 2017, 2018 and 2019. Click on the “Review Your Tax” button, as highlighed below.







Step 3: Choose which tax year you want to claim a rebate


You need to select which year you wish to apply for a tax refund and proceed by clicking edit. If you are claiming for multiple years, you need to do this for each year you are claiming.






Step 4: Personal Details


Revenue will request several personal details from yourself;


- Civil Status (Married / Not-Married);


- Dependent Children (Generally children under the age of 18 or some other wise incapacitated);


- Did you hold a medical card for 2019?;


- Are you resident (Have you been in Ireland for at least a total of 183 days in the year in question or 280 days or more in the year & the year prior);


- Are you ordinarily resident (If you have been tax resident in Ireland for three consecutive tax years, you become ordinarily resident from the beginning of the fourth tax year);


- Are you domiciled in Ireland (A complex legal term – generally this is where you are from or born);


- Email; and


- Bank Details (Revenue will refund into this bank account)




Step 5: Confirming Income


Due to PAYE Modernisation, the next screen will show you your PAYE Income for the year in question. Generally, no action is needed here as the information is correct. However, it is advised you double check the information.


The next screen will be as below. You are required to enter any other income you have received throughout the year e.g. Social Welfare, Maintenance Payments, Dividends etc. Generally, your taxable non-PAYE income should not exceed €5,000 and your gross non-PAYE income €30,000. If it does, you are required to complete a Form 11 and you may be liable for preliminary tax thtough the self assessment system.

If you have no additional income, continue to the next screen.




Step 6: Adding in Credits to reduce Tax Payable


The next step is to claim the relevant tax credits – this will reduce the amount of tax you’ve paid and will ultimately result in your tax rebate. The available credits are broken into section and we will discuss each in turn.






Step 6.1 : Health Expenses





A. Health Expenses


You are entitled to claim health expenses for yourself and any individual where you have paid the expense. We will now go through the common types of health expenses you may claim.




Doctor Visits


What is it?

You are entitled to claim 20% relief on visits to a GP, Doctor or for consultancy fees / treatment in a hospital.


Where to include?

These are entered within “Other Medical Expenses” at the gross value e.g. full amount paid to GP.


Records required?

You must maintain a receipt or invoice from your GP or hospital.


Prescriptions


What is it?

You are entitled to claim 20% for medicines prescribed by your Doctor, Dentist or Consultant.


Where to include?

These are entered within “Other Medical Expenses” at the gross value e.g. full amount paid for prescription.


Records required?

Your pharmacist can provide you with a summarised prescription.

Dental Work


What is it?

Non-routine dental work can be claimed as a tax relief e.g. root canal, crowns etc. You cannot claim for fillings etc. Further details can be found here :https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/dental-expenses.aspx


Where to include?

Include within Non-Routine Dental Expenses


Records required?

Your dentist must provide you with a Med 2 form.


Other Medical Expenses


The following are also allowable medical expense and are to be included within the “Other Medical Expenses” Category. Please note certain conditions apply to each;


- Laser Eye Treatment

- Fertility Treatment

- Maternity Care

- X-Rays & Other Diagnostic tests

- Physiotherapy, Acupuncture, Podiatry & Chiropody

- Orthopaedic Care

- Psychotherapy or Psychiatry

- Speech & Language Therapy

- Educational Psychological Assessment

- Dietary Restrictions due to Medical Conditions (e.g. Purchases Gluten free products as a Coeliac)


Refunds


Any refunds received from other parties such as Health Insurance should be included in “Dental / Medical Expenses Refunded”. These will be excluded from your claim.

B. Nursing Home Expenses


You may claim income tax relief on nursing home expenses paid by you. You can claim this relief at your highest rate of tax if the nursing home provides 24-hour on-site nursing care. You are allowed a higher rate tax deduction for Nursing Home fees which would be at 40%.


C. Medical Insurance Relief


There is relief at source on Medical / Dental insurance when an individual purchase this policy directly. However, when an employer pays for the policy the individual pays a Benefit in Kind on the gross value of the policy. It is in those particular circumstance when an employee can claim Medical Insurance Relief.


D. Blind Persons Tax Credit


If you are blind or you have impaired vision during the tax year, you 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.

E. Guide Dog Allowance


If you are blind or visually impaired, you can claim a tax credit if you own a trained guide dog. You can also claim the Blind Person's Tax Credit.

F. Income Continuance


You might take part in a scheme to have your income continue if you are absent due to illness or injury, also know as Permanent Health Benefit. The relief is capped at 10% of your total income.

G. Assistance Dog Allowance


If you require a trained service dog or assistance dog, you may claim €825 per year.





Step 6.2 : You and your family





A. Owner Occupier Relief

You can claim Owner-Occupier Relief if you spent money purchasing, constructing, converting or refurbishing a qualifying property. A qualifying property is a house or apartment which is part of a scheme in a qualifying area. You must live in and own the property. The relief reduces your taxable income for ten years. These schemes are expiring, and it is quite rare that they are still in place.

B. Retirement Annuity

You may claim tax relief for premiums that you pay to a Retirement Annuity if you are in a job that is not pensionable.

C. Tuition Fees

You can claim tax relief on fees (including the student contribution) that you have paid for third level education courses.

You may be the student, or you may pay the fees on the student's behalf. You can claim the relief if you have actually paid the fees. While this relief can be very advantageous for a tax payer, there are several requirements that must be met. These can be found here;


https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/how-do-you-calculate-the-relief.aspx

D. Deed of Convenant


A Deed of Covenant is a legally binding written agreement to pay an agreed amount to another person. You must not receive any benefit in return for paying this amount. Covenants to certain individuals qualify for tax relief. You can claim relief on covenants to adults over 65 (5% of total income), permanently incapacitated adults and permanently incapacitate children. Relief is given for a Deed of Covenant in certain circumstances.


E. Retainable Charge


Certain payments may be held back e.g. payments to foreign landlords. This is where this is recorded and reclaimed.


F. Dependent Relative Tax Credit


If you main a relative (e.g a child) on your own, you are entitled to a €70 tax credit. This only applies if income is less than €15,060.


G. Employing a Carer


You may claim tax relief on the cost of employing a person to take care of:

  • yourself, your family member, spouse or civil partner who is totally incapacitated due to physical or mental infirmity;

or

  • your relative, or a relative of your spouse or civil partner, who is totally incapacitated due to physical or mental infirmity.

This relief is at a marginal rate (higher rate) and be claimed up to a maximum of €75,000.

H. Rent-a-Room Relief


If you rent a room in your household, income up to €14,000 may be fully relieved from Tax. Both the income and the relief must be recorded and you only have 4 years to claim the relief. Revenue may go back further than 4 years when reviewing tax affairs so it is important you correctly account for this relief.

Step 6.3 : Your job





A. Flat Rate Expenses


Flat rate expenses are costs that relate directly to the performance of your duties for an employer. These expenses are a fixed amount and vary from profession to profession. For example, a shop assistant is entitled to a relief of €121 per annum while a teacher is entitled to €518 per annum. These amounts a deducted from your taxable income which could result in a tax rebate of 40% / 20% of the value depending on your income. A full list of Flat Rate Allowances can be found here;


https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/documents/flat-rate-expenses.pdf


B. Additional Voluntary Contributions


Employees who make additional contribution to their approved Revenue Pension Scheme are entitled to a refund. There is also an opportunity to make a lump sum contribution to your pension scheme post year-end that would reduce your Income Tax liability.


C. PRSA’s


Like AVC’s, you are entitled to deduct payments into a PRSA from your tax.


D. Foreign Earning Deduction


If you are resident in Ireland for tax purposes, but spend some time working abroad, you may be able to claim FED. There are certain conditions that you must meet in order to qualify. Please get in touch with MyTax or your accountant to discuss further.


E. Transborder Relief


This relief is for people who are resident in Ireland, but work and pay tax in another country. You can claim it if you travel daily or weekly to your place of work outside Ireland.


F. Retirement Relief for Sportspersons


Ireland offers a very generous relief for professional sportspersons. Upon retirement you are granted relief for 40% of your Income for 10 selected years.


G. Seafarer Allowance


You may claim Seafarers’ Allowance of €6,350 if you are a seafarer who is at sea on a voyage to and from a foreign port. The allowance also applies to seafarers who service drilling rigs.


H. Fisher Tax Credit


If you are a self-employer or PAYE fisher, you are entitled to a credit of €1,270. This varies depending on days at sea.


I. Other PAYE Expenses


Other PAYE credits are also available to employees. These include the Eworking credit, greyhound stud relief, artist exemptions, special assignee relief programmes and others.

If you have returned home from time abroad, you may also benefit from split year relief.



Step 7: Review and submit information


Prior to submission you are required to verify you are entitled to receive the PAYE Credit and the personal tax credit. Once these boxes are ticked you may proceed and submit your return.


Revenue will review the information provided and re-calculate your tax for a given year. Please note if you have underpaid tax you may be liable to pay money over to Revenue. If you are in a rebate position, your tax refund will be processes in 10-12 working days.



Tax relief upon marriage


On the year of marriage, you will be taxed as two separate persons for the year, however, you may be entitled to a refund if you pay more tax as two individuals then you would have as a couple (jointly-assessed). An example is as follows;


Tom and Mary married on 10 July 2019. They continue to be taxed as single people for 2019. As single people they pay a total of €10,640 in income tax for the year. Tom paid €9,140 and Mary paid €1,500. If they had been jointly assessed, they would have paid €8,840. The difference between the two amounts is €1,800. As they were married for six months of the year, a refund of €900 is available (€1,800 x 6/12).


Generally, it is only possible to be due a tax refund if one individual in the marriage (civil partnership) is being taxed at the higher rate and the other individual is only being taxed at the standard rate. If both individuals are being taxed at the higher rate there will generally be no tax savings.

Top 3 utilised tax reliefs in Ireland


1. Flat Rate Expenses – these cover such a wide variety of jobs so check if yours falls under their remit.


2. Health Expenses – The majority of health expenses (including prescriptions) are allowable for tax relief.


3. Tuition Fees: If you pay for your own or your child’s college fees you could be due a refund.




Irish Tax Rebate Template Calculator


We’ve put together an automatic template that will determine if you are due a tax refund. All you need to do is sign-up here and you’ll be able to download the template.


Once downloaded, fill it out based on your on personal details and it will calculate if you are due a refund or not.


You could also use MyTax to claim back your rebate. We are quick and the most competitively priced agent in the market. We charge a fixed fee of just €24.99 with no commission. Complete our 60 second form here and we can get started.


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