Tax credits Ireland Explained: What Every Irish Resident Needs to Know to Save Money!

Are you confused about Irish tax credits? Lots of people miss out on tax refunds. This is because they don’t know what they can claim. From personal tax credits Ireland to help with medical bills and rent, understanding your options could save you money each year! Many people don’t bother claiming tax back. They think it’s too hard or not worth the effort.
 
But that’s not true! If you know what you can claim, you could lower your tax bill by a lot each year. This guide will explain some common Irish tax credits and reliefs. You can easily claim your Ireland tax deductions. It will show you how to understand your tax situation better.

Understanding Tax Credits Ireland

Let’s explore how tax credits function. Essentially, a tax credit reduces the amount of tax you owe to the government. Unlike deductions, which lower your taxable income, tax credits typically cut down your tax bill directly. There are various types of tax credits Ireland, like personal tax credit Ireland, single parent tax credit Ireland, and more. Let’s explore list of tax credits Ireland.

Who is Eligible for Tax Credits?

Most individuals living in Ireland who pay taxes can claim these credits. This includes employees, self-employed people and some non-residents, depending on their circumstances.

The value of tax credits can differ based on your situation. Factors such as being single, married, or having dependent children can affect this.

 

How to Claim Tax Credits

Some tax credits are automatically applied when you submit your tax return. However, others need to be claimed manually. You can do this online through your MyGovID “myAccount” or the ROS (Revenue Online Service).

How do tax credits work Ireland (2024)

Here’s a simple guide to tax credits in Ireland for 2024.

Note: If you want to claim for past years, you can check the same on their official website or get it checked by an expert. Also, check the tax rates and rules for those years.

Single Person’s Tax Credit

This credit can lower your tax bill if you’re single, separated, or divorced. It’s often applied automatically.

– Who: Any single taxpayer
– Value: £1,875 (2024)
– How to Claim: Usually automatic if your online tax account is up to date

Married tax credit Ireland

This credit helps married couples or those in civil partnerships with their shared costs.

– Who: Married couples or civil partners taxed together
– Value: £3,750 (2024)
– How to Claim: Usually automatic if you’re taxed jointly and your tax records are correct

Widowed Person’s Credit

This credit offers support if you’ve lost a spouse or civil partner. The amount varies

– Who: Widowed people who haven’t remarried
– Value (2024): Varies depending on circumstances, see the original document for specific values.
– How to Claim: Usually automatic if your online tax account is correct

Rent Tax Credit

If you rent privately in Ireland, you might get this credit.

– Who: People paying private rent (with conditions)
– Value: 20% of your rent, up to £1,000 (single) or £2,000 (couple) for 2024 and 2025
– How to Claim: Through your online tax account

Employee Tax Credit (PAYE)

If you’re employed and pay tax through PAYE, you should see this credit already.

– Who: Employees earning through PAYE
– Value: £1,875 (2024)
– How to Claim: Usually automatic if your online tax account is up to date

Earned income credit Ireland

This is for self-employed people and company directors to lower their tax

– Who: Self-employed people or proprietary directors.
– Value: £1,875 (2024)
– How to Claim: Through your online tax account (may be automatic)

Age tax credit Ireland

If you’re 65 or older, you could get this credit.

– Who: People aged 65+
– Value: £245 (single/widowed) or £490 (married) for 2024
– How to Claim: Automatic if your age is declared and your tax details are correct

Dependent relative tax credit

If you support a dependent relative, this might lower your tax.

– Who: Taxpayers supporting a dependent (with conditions)
– Value: £245 for 2024
– How to Claim: Through your online tax account

Single parent tax credit Ireland

This helps single parents or guardians.

– Who: Single parents/guardians with a dependent child
– Value: £1,750 (2024)
– How to Claim: Through your online tax account

Incapacitated child tax credit

If you care for a child with a disability, you can get this credit.

– Who: Parents/guardians of a child with a permanent disability
– Value: £3,500 (2024)
– How to Claim: Through your online tax account. You’ll need documents from a doctor

Home carer tax credit

If you’re married and one of you cares for someone at home, you could get this.

– Who: Married couples where one spouse is a home carer
– Value: £1,800 (2024)
– How to Claim: Through your online tax account

Important Note: Check the full rules and your own situation with a tax advisor or on the official Irish tax website

Help with mortgage interest

If you have a mortgage from before 2013, you used to get tax relief on the interest. Now, there’s a new tax credit called the Mortgage Interest Tax Credit

You can now get some money back on the extra interest you paid in 2024. This is compared to how much you paid in 2022

– Who: Homeowners paying mortgage interest (who meet certain rules)
– What You Get: You get 20% of the extra interest you paid in 2024 compared to 2022. The most you can get is €1,250
– What You Need:
– You must have owed between €80,000 and €500,000 on your mortgage on 31 December 2022.
– Your loan must be with a proper lender (listed by the Central Bank of Ireland)
– You must have paid interest on the loan in the right years
– The interest you paid in 2023/2024 must be more than what you paid in 2022
– How to Claim: You need to upload extra documents to your online tax account (MyAccount or ROS)

Help for people who are blind

If you’re registered as blind, you can claim the Blind Tax Credit.

– Who: People who are blind or partially sighted
– What You Get: €1,650 (2024), or €3,300 if both people in a married couple or civil partnership are blind
– What You Need:
– Your eyesight must be no better than 6/60 in your better eye, even with glasses or lenses
– Your field of vision must be very limited
– How to Claim: You need to claim this manually through MyAccount or ROS, as you need to provide documents from a doctor

Help With Guide Dogs

If you’re blind and have a trained guide dog, you can claim the Guide Dog tax allowance Ireland

– Who: People who are blind or visually impaired and have a certified guide dog
– What You Get: €825, which works out as a tax credit of €165 (2024)
– What You Need: You must prove you are visually impaired
– How to Claim: Through MyAccount, and you need to upload documents

Help with medical bills

You can get tax relief on some medical expenses.

– Who: Anyone who has medical costs
– What You Get: Depends on the cost and your situation
– What You Need: You must be living in Ireland for tax purposes
– How to Claim: Through MyAccount or ROS. Keep your receipts!

Help for people working from home

If you work from home, you can claim for some of your costs

– Who: People working from home
– What You Get: You can claim for 30% of your electricity, heating, and broadband costs
– What You Need:
– You must be living in Ireland for tax purposes
– You can only claim for days you worked from home
– How to Claim: Through MyAccount or ROS

Help with university fees

If you’re paying university fees, you can get tax relief on some of the costs.

– Who: Anyone paying fees for a university student
– What You Get: You can claim for fees up to €7,000 per course, per person, each year
– What You Need: The course must be approved. The first €3,000 (full-time) or €1,500 (part-time) of fees doesn’t count
– How to Claim: Through MyAccount or ROS

Help for landlords

If you’re a landlord, you can lower your tax bill

– Who: Landlords renting out homes
– What You Get: You can deduct mortgage interest. You also get 20% relief on rental profit, up to €600 in 2024
– What You Need: You must register your tenants with the RTB
– How to Claim: When you file your tax return

Tax credits for people new to Ireland

If you’re an expat in Ireland, you can usually get the same tax credits as Irish residents.

– You must be living in Ireland for tax purposes
– You can claim most credits through MyAccount. You’ll need a PPS number
– If your country has a tax agreement with Ireland, you might not have to pay tax twice on the same income.

Understanding tax credits Ireland can seem daunting, but it’s worth the effort. From rent relief to credits for dependent relatives, many opportunities exist to lower your tax bill and put more money in your pocket. Take the time to explore which credits apply to your situation and claim what you’re due. Whether you use MyAccount or seek professional advice, the potential savings make it a worthwhile endeavor. Don’t leave money on the table – start claiming your Irish tax credits today!