January, the time to spring clean your finances. Yes, it may mean an hour or two of paperwork but considering you could claim hundreds of euro back, it is time very well spent.
Unfortunately, not everyone undertakes the task. Figures from the CSO show that 2.2 million people in this country pay tax and are eligible to claim back tax on medical expenses (amongst the others listed below).
However, according to Revenue just 454,700 made a medical claim in 2019, that’s 20% of those who are eligible. Of course, not everyone needs to make a medical claim, but we would certainly expect that number to be much higher.
In light of this and considering that Taxback.com says that their average claim is €1,076, it might be time to pull out the paperwork. Here are some top tips to get the most out of your claim.
1 Claim for the last four years
If you haven’t claimed tax back in quite a while, or ever, then you could be looking at a significant windfall as you can claim for up to four years. So for example, if you paid tuition fees in 2015 or spent some time renting a room in 2017, you can still claim for these.
According to Taxback.com, the top five reliefs that people claimed for over the 2017 and 2018 period include medical expenses, rent tax credit, single parent tax credit, medical insurance and flat rate expenses. There is a myriad of reliefs available but we’ve listed some of the reliefs that may be most relevant to our readers below.
If a couple with three children takes even just five trips to their GP in a year that bill hits approximately €250 – you could get €50 of this back from the Revenue
2 Medical expenses
As mentioned, this is a relief that applies to the most amount of people. So what do you get? It’s 20% back on most unreimbursed expenses and on qualifying, non-routine dental expenses. And it’s the everyday stuff that people claim for: GP visits, medicines, physiotherapy and hospital visits. If you’ve got a healthy family, you might not think that you’ll get back much but Eileen Devereux, commercial director at Taxback.com says: “Most people incur medical expenses throughout the year – particularly parents with children, despite free GP care for under sixes.
"Trips to the doctor’s surgery can become commonplace for a lot of families over the years, with a trip costing anywhere from €40 to €70. So, if a couple with three children takes even just five trips to their GP in a year that bill hits approximately €250 – you could get €50 of this back from the Revenue.”
She also says if you have four years to claim, it could really be worth your while.
“Analysis of our own customer records indicates the average refund for medical expenses over four years totals €494.”
Although the percentage of people claiming is low, it is on the rise with 70,000 more people claiming now compared to 2012.
3 Tuition fees
Graduates and parents, listen up. You may be very interested in this tax relief. If you paid college tuition fees either for yourself or a child, then tax relief is granted at 20% – the standard rate of tax. However, be aware that the relief you can claim for is only applicable on any amount above €3,000 and at a maximum of €7,000 per course.
That cap is per person though. If you are paying for more than one child to go to college, the good news is that there is no limit on the number of individuals for whom you can claim. In fact, most claims for this type of relief come from parents with more than one child in college at the same time.
Generally speaking, all courses in Ireland that are provided by publicly funded universities, colleges and institutes of higher education are approved for tax relief. If you studied in a different country, then don’t worry, there is a possibility that this relief still applies to you.
Courses provided by publicly funded or duly accredited universities and institutions in other European Union (EU) member states are also approved, so get investigating about yours.
4 Overpaid tax
Did you change jobs in the past few years? Perhaps you were on emergency tax for a short while or you worked in another country?
There is no harm looking at your income levy and USC payments to ensure you haven’t overpaid in previous years. The first thing you need to do is get your P60. Most employers will have these issued by the end of January. Then log onto Revenue’s PAYE Anytime service on www.revenue.ie and set up an account.
Once this is done, request a balancing statement called a P21. If you opt to do all this online, you should receive your P21 within four or five working days. This will allow you to see if you have overpaid tax and submit your bank account details for a refund.
However, be aware that if you have underpaid your taxes, you will owe this back to Revenue. You can claim back for the last four years, so this could result in a bit of a windfall.
5 Home Renovation Scheme
Some bad news folks. Unfortunately, as of 31 December 2018, the Home Renovation Scheme (HRI) is now gone. It was a great scheme and anyone who got any bit of renovation work done to their house will attest to that.
If you spent between €4,405 and €30,000 on work on your house, you got 13.5% back in tax credits.
Even if you spent the minimum amount, which could easily be done if you were replacing windows, a roof or even putting on a small extension, then you got €595 back.
If someone spent the maximum amount, there tax credit was as high as €4,050. Unfortunately, the scheme is now over but anyone who got work done before the end of last year can still claim.
Medical expenses.Tuition fees.Home carer tax credit.Flat rate expenses.Mortgage interest relief.Electric cars BIK break.Rent a room relief.Employee Incentive Scheme.Earned income tax credit.Single parent child carer tax credit.Incapacitated child tax credit.Blind person tax credit.Widowed parent tax credit.Pre-letting expense relief for landlords of vacant properties.For more information see revenue.ie or taxback.com
January, the time to spring clean your finances. Yes, it may mean an hour or two of paperwork but considering you could claim hundreds of euro back, it is time very well spent.
Unfortunately, not everyone undertakes the task. Figures from the CSO show that 2.2 million people in this country pay tax and are eligible to claim back tax on medical expenses (amongst the others listed below).
However, according to Revenue just 454,700 made a medical claim in 2019, that’s 20% of those who are eligible. Of course, not everyone needs to make a medical claim, but we would certainly expect that number to be much higher.
In light of this and considering that Taxback.com says that their average claim is €1,076, it might be time to pull out the paperwork. Here are some top tips to get the most out of your claim.
1 Claim for the last four years
If you haven’t claimed tax back in quite a while, or ever, then you could be looking at a significant windfall as you can claim for up to four years. So for example, if you paid tuition fees in 2015 or spent some time renting a room in 2017, you can still claim for these.
According to Taxback.com, the top five reliefs that people claimed for over the 2017 and 2018 period include medical expenses, rent tax credit, single parent tax credit, medical insurance and flat rate expenses. There is a myriad of reliefs available but we’ve listed some of the reliefs that may be most relevant to our readers below.
If a couple with three children takes even just five trips to their GP in a year that bill hits approximately €250 – you could get €50 of this back from the Revenue
2 Medical expenses
As mentioned, this is a relief that applies to the most amount of people. So what do you get? It’s 20% back on most unreimbursed expenses and on qualifying, non-routine dental expenses. And it’s the everyday stuff that people claim for: GP visits, medicines, physiotherapy and hospital visits. If you’ve got a healthy family, you might not think that you’ll get back much but Eileen Devereux, commercial director at Taxback.com says: “Most people incur medical expenses throughout the year – particularly parents with children, despite free GP care for under sixes.
"Trips to the doctor’s surgery can become commonplace for a lot of families over the years, with a trip costing anywhere from €40 to €70. So, if a couple with three children takes even just five trips to their GP in a year that bill hits approximately €250 – you could get €50 of this back from the Revenue.”
She also says if you have four years to claim, it could really be worth your while.
“Analysis of our own customer records indicates the average refund for medical expenses over four years totals €494.”
Although the percentage of people claiming is low, it is on the rise with 70,000 more people claiming now compared to 2012.
3 Tuition fees
Graduates and parents, listen up. You may be very interested in this tax relief. If you paid college tuition fees either for yourself or a child, then tax relief is granted at 20% – the standard rate of tax. However, be aware that the relief you can claim for is only applicable on any amount above €3,000 and at a maximum of €7,000 per course.
That cap is per person though. If you are paying for more than one child to go to college, the good news is that there is no limit on the number of individuals for whom you can claim. In fact, most claims for this type of relief come from parents with more than one child in college at the same time.
Generally speaking, all courses in Ireland that are provided by publicly funded universities, colleges and institutes of higher education are approved for tax relief. If you studied in a different country, then don’t worry, there is a possibility that this relief still applies to you.
Courses provided by publicly funded or duly accredited universities and institutions in other European Union (EU) member states are also approved, so get investigating about yours.
4 Overpaid tax
Did you change jobs in the past few years? Perhaps you were on emergency tax for a short while or you worked in another country?
There is no harm looking at your income levy and USC payments to ensure you haven’t overpaid in previous years. The first thing you need to do is get your P60. Most employers will have these issued by the end of January. Then log onto Revenue’s PAYE Anytime service on www.revenue.ie and set up an account.
Once this is done, request a balancing statement called a P21. If you opt to do all this online, you should receive your P21 within four or five working days. This will allow you to see if you have overpaid tax and submit your bank account details for a refund.
However, be aware that if you have underpaid your taxes, you will owe this back to Revenue. You can claim back for the last four years, so this could result in a bit of a windfall.
5 Home Renovation Scheme
Some bad news folks. Unfortunately, as of 31 December 2018, the Home Renovation Scheme (HRI) is now gone. It was a great scheme and anyone who got any bit of renovation work done to their house will attest to that.
If you spent between €4,405 and €30,000 on work on your house, you got 13.5% back in tax credits.
Even if you spent the minimum amount, which could easily be done if you were replacing windows, a roof or even putting on a small extension, then you got €595 back.
If someone spent the maximum amount, there tax credit was as high as €4,050. Unfortunately, the scheme is now over but anyone who got work done before the end of last year can still claim.
Medical expenses.Tuition fees.Home carer tax credit.Flat rate expenses.Mortgage interest relief.Electric cars BIK break.Rent a room relief.Employee Incentive Scheme.Earned income tax credit.Single parent child carer tax credit.Incapacitated child tax credit.Blind person tax credit.Widowed parent tax credit.Pre-letting expense relief for landlords of vacant properties.For more information see revenue.ie or taxback.com
This is a subscriber-only article
SHARING OPTIONS: