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Everybody is entitled to claim some form of tax back. However, it seems very few of us are making the most of our dues. It was recently revealed that Irish taxpayers have left an astonishing €350 million in unclaimed tax in the coffers of the department of finance. So it seems that if you learn to treat him right, the taxman might have some money for you. And all you have to do to get at it, is to ask nicely!
Here is the maryb.guide to befriending with the poor beleagoured tax man and maximising your money.
1. Health/Medical Expenses
Most people are entitled to claim tax credits for medical expenses.
There are some routine dental and opthalmic care treatments that are not covered. Plus, anyone covered by private health insurance, a health authority or where compensation will be paid, cannot claim relief on espenses relating to any treatment.
2. Rent Relief
Anyone living in rented accommodation, is eligible for tax relief on the rent they pay. There are upper limits to rent relief, which range from €1,800 for a single person under 55, to €7,200 for a married couple or widowed person up to 55.
3. Mortgage Interest Relief
On the other side of the coin from renters, those who hold a mortgage are entitled to claim interest relief. This no longer appears on your notice of tax credits. Since 2002 it has been granted at source, meaning you get a discount on your repayments. You should contact your lending institution for details on your entitlements.
4. Tax Relief on Service Charges
If you pay local authority charges or other service charges, you are entitled to income tax relief. Relief is available for service charges paid in full and on time within one year.
5. Marriage Claims
If you get married, you and your spouse will be treated as two single people by the taxman for the year in which you tie the knot. The good news is that a refund can be claimed, if the tax payable as two single people is greater than the amount which would be payable as a married couple. Think of it as a wedding present from the department of finance.
6. Rent-a-Room Relief
If you rent a room out to a lodger in your home and that home is your sole or main residence you are entitled to a gross annual rental income of up to €7,620 exempt from tax. Mortgage interest relief is not affected.
7. Home Carers’ Tax Credit
This is available to married couples if one party remains in the home to care for any dependent persons. It is based on the standard rate of tax (20%). However, the carer’s income must not exceed €5,080, otherwise it does not apply. Also, married couples taxed as single people do not qualify.
8. Trade Union Subscriptions
If you are a Trade Union member you can claim a tax credit of €60.
9. Tuition Fees
In some cases, tax relief is available up to a maximum amount of €5,000 for the academic years 2006/2007 and 2007/2008.
10. Others
Tax relief can also be claimed in some other cases, such as donations to charities, foreign earnings or in the case of someone providing a childcare service within their own home, as long as they earn less than €15,000 during 2007.
For further details on how you can make friends with your taxman and reclaim money that could net you a tidy windfall, contact www.revenue.ie
Claiming Your Dues
Everybody is entitled to claim some form of tax back. However, it seems very few of us are making the most of our dues. It was recently revealed that Irish taxpayers have left an astonishing €350 million in unclaimed tax in the coffers of the department of finance. So it seems that if you learn to treat him right, the taxman might have some money for you. And all you have to do to get at it, is to ask nicely!
Here is the maryb.guide to befriending with the poor beleagoured tax man and maximising your money.
1. Health/Medical Expenses
Most people are entitled to claim tax credits for medical expenses.
There are some routine dental and opthalmic care treatments that are not covered. Plus, anyone covered by private health insurance, a health authority or where compensation will be paid, cannot claim relief on espenses relating to any treatment.
2. Rent Relief
Anyone living in rented accommodation, is eligible for tax relief on the rent they pay. There are upper limits to rent relief, which range from €1,800 for a single person under 55, to €7,200 for a married couple or widowed person up to 55.
3. Mortgage Interest Relief
On the other side of the coin from renters, those who hold a mortgage are entitled to claim interest relief. This no longer appears on your notice of tax credits. Since 2002 it has been granted at source, meaning you get a discount on your repayments. You should contact your lending institution for details on your entitlements.
4. Tax Relief on Service Charges
If you pay local authority charges or other service charges, you are entitled to income tax relief. Relief is available for service charges paid in full and on time within one year.
5. Marriage Claims
If you get married, you and your spouse will be treated as two single people by the taxman for the year in which you tie the knot. The good news is that a refund can be claimed, if the tax payable as two single people is greater than the amount which would be payable as a married couple. Think of it as a wedding present from the department of finance.
6. Rent-a-Room Relief
If you rent a room out to a lodger in your home and that home is your sole or main residence you are entitled to a gross annual rental income of up to €7,620 exempt from tax. Mortgage interest relief is not affected.
7. Home Carers’ Tax Credit
This is available to married couples if one party remains in the home to care for any dependent persons. It is based on the standard rate of tax (20%). However, the carer’s income must not exceed €5,080, otherwise it does not apply. Also, married couples taxed as single people do not qualify.
8. Trade Union Subscriptions
If you are a Trade Union member you can claim a tax credit of €60.
9. Tuition Fees
In some cases, tax relief is available up to a maximum amount of €5,000 for the academic years 2006/2007 and 2007/2008.
10. Others
Tax relief can also be claimed in some other cases, such as donations to charities, foreign earnings or in the case of someone providing a childcare service within their own home, as long as they earn less than €15,000 during 2007.
For further details on how you can make friends with your taxman and reclaim money that could net you a tidy windfall, contact www.revenue.ie