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Thursday, September 29, 2022

Here’s how to claim tax credits and pocket up to €2,000

Every year we hear about how we should claim our tax credits and get extra money in our pockets. Many people consider doing this but when it comes to executing it they shy away, not knowing how to go about it.

Well, help is at hand on how you can claim that tax back and put the money back in your pocket.

The place to start is revenue.ie where you can create your account. The site is busy and there is a lot of jargon on it but invest time and you will be rewarded.

Once you have created your account start checking what credits and refunds you can apply for. Applying for credits is not a one size fits all button so the next step is figuring out with a pen and paper exactly what credits and reliefs you can apply for and then going to the place on the website where you can claim them.

Taxback.com released figures recently that said that as much as €300 million was overpaid by Irish taxpayers last year. The average amount claimed back by people from Revenue is now around €1,900.

CEO of taxback.com, Joanna Murphy said: “The reality is that we’re not great in this country for claiming the reliefs and refunds owed, which is a shame because many households throughout the country could really benefit from that added cash injection. 

“Many people are still unwilling to apply for a tax refund possibly because they believe it’s a difficult process or a ‘hassle’, but the reality is it’s very straightforward, and only requires a little prep in terms of keeping receipts or following up with your health practice or dentist to obtain the ones you don’t have.”

Joanna Murphy, CEO of Taxback.com Picture: Dave Meehan 

Top of the list on refunds is medical expenses and you can claim 20% here. These include doctor’s visits or prescription fees.

If you had a baby and paid for a private consultant you can claim 20% of what you paid.

As with all claims the key is keeping recipes. A good plan is to have shoebox and as you get receipts pop them into the box so they are all together for when you sit down to do your taxes towards the end of the year.

For employees there is a tax relief called ‘flat rate expense relief’ for people in certain jobs. By claiming this a person can reduce the amount of taxable income they have each year on the cost of certain expenses. The amount that can be claimed depends on the job because the rates are set by Revenue each year for various classes of employee. A full list of jobs and associated reliefs can be found online at revenue.ie.

Over 180 different occupations are entitled to flat rate expenses of varying amounts between €21 to €2,476 per year with an average of €247 per year.

Flat rate expenses are not automatically deducted from pay so you have to be proactive and claim them yourself.

There is also a relief for anyone working from home.

Ms Murphy said people can apply for tax relief on the cost of utilities and other expenditures over their year.

There are also reliefs for tuition fees, nursing home payments, caring for a relative and in some cases home renovations.

“I would say, don’t wait. While you can claim going back four years, there are strict deadlines in place for when you can claim, and once these have passed, they have passed,” warns Ms Murphy.

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