An €1,880 taxback windfall waiting to be claimed
Tax windfall: There are many tax reliefs available to workers in Ireland, depending on your personal circumstances. Be sure to check with a tax expert to ensure you are receiving every entitlement you’re due.
Thousands of Irish people are missing out on unclaimed taxes amounting to a staggering €1,880 every year.
That is the stark message from Marian Ryan, Consumer Tax Manager at Taxback.com — the Irish-headquartered firm providing global tax return filing and tax refund services.
At a time when household budgets are being stretched to the limit due to rising energy and consumer costs, Ryan and her team help clients to better understand their tax entitlements and maximise their tax refund.
People who have worked full or part-time in Ireland will have entitlements, including medical and rent expenses. You can also apply if your job was made redundant or you worked only part of the year.
The average Irish tax refund is €1,880. You can apply for your refund online here.
“Many people pay too much tax because they don’t understand their entitlements,” she explains.
“If you're a PAYE worker, such as a receptionist, nurse or a teacher, your employer will deduct tax from your earnings. However, most people don't know that they may be entitled to a refund of some of the tax paid to Revenue during the year. It is important to make the distinction between tax credits, reliefs and expenses which apply automatically and those that people have to claim themselves — such as the new rent credit, medical expenses etc.”
There are a wide range of tax reliefs available to Irish workers. Exactly what you can claim will depend on your personal circumstances. It is always worth checking with a tax expert to ensure you are receiving every entitlement you’re due. Ryan has illustrated five of the most common types of tax relief below.
In the recent Budget 2023, Finance Minister Paschal Donohue announced a new tax credit for renters in Ireland — a welcome relief to renters who have seen a steep rise in the cost of living in the country over the past few months.
Providing a new tax credit for renters in the private sector, it is worth €500 per year for a single individual and €1,000 for a married couple. It is understood that nearly 40,000 people will be eligible to apply for it, and it has also been backdated to include rent paid in 2022.
Tax relief is available at 20% on the cost of many different types of common medical expenses (such as visits to the GP, Consultant or physio and prescription costs). Other areas where refunds are due include prescriptions, ambulance calls, physiotherapy, diagnostic procedures and maternity care. Tax back can also be claimed on certain ‘non-routine dental expenses such as orthodontic and root canal treatments.
Similarly, the substantial costs associated with long-term care in a nursing home can mean refunds of up to 40% for either an individual or a loved one.
Married couples, of which there are over 1.7 million in Ireland, may also have potential refunds due, depending largely on how much a working couple earns.
In the year you're married, both you and your spouse will continue to be treated as single people for tax purposes.
So if you got married in 2022, for example, you may now be due a refund if the tax you paid as two single people is greater than the tax payable if you were taxed as a married couple.
Savings can also be made if both are working, but only one pays tax at the higher rate, or if one spouse has unused credits due to low income or cares for children in the home.
Flat Rate Expenses are available to thousands of Irish employees who work in a variety of different jobs, from bar staff to nurses and from teachers to firefighters. These expenses are designed to cover common work-related costs such as tools, uniforms and stationery.
How much you will be able to claim will depend on your personal circumstances. For example, electricians can claim €153, dentists are due €376, while nurses can claim €733.
There is tax relief available for home workers too.
If you worked from home in 2022, you can apply for a tax refund on your home heating, electricity and broadband bills.
Apply for your tax refund in minutes. Start here.
Taxpayers are free to apply for their refund themselves.
However, Taxback.com simplifies the process of claiming your maximum rebate. They will analyse your tax situation, ensure you are receiving every credit, relief, and expense you’re due and manage the paperwork for you.
They will even transfer your refund straight to your bank account.
And the best part? Taxback.com offer a ‘no refund, no fee’ service which means it can’t hurt to check if you’re due a refund!
It takes a matter of minutes to kick off your refund application. Simply register with Taxback.com here to get started.
- Your maximum tax refund guaranteed
- Full four-year tax review
- Simple online process — no complicated forms
