Types Of
Tax Rebates
Rent Tax Rebates
The Rent Tax Credit is applicable for the tax periods spanning from 2022 to 2025. It serves to reduce the Income Tax amount you are obligated to pay during a given tax year. To qualify for the Rent Tax Credit, it is essential to have an Income Tax liability that can be offset against the credit.
In the years 2022 and 2023, the Rent Tax Credit reaches a maximum of €1,000 annually for married couples or civil partners assessed jointly. In all other instances, such as for single individuals, the maximum value is €500.
For the years 2024 and 2025, the Rent Tax Credit sees an increase, with a maximum value of €2,000 per year for jointly assessed married couples or civil partners, while in all other cases, including single persons, the maximum value is €1,000.00. It's important to note that this applies regardless of the number of properties for which rent is paid during the year.
Working From Home
Remote working encompasses two main scenarios:
- Full-time or part-time work carried out at home.
- Splitting work hours between home and the office.
Remote working involves:
- Engaging in significant work periods from home.
- Accessing your employer's computer system remotely.
- Sending and receiving emails, data, or files from a remote location.
- Developing ideas, products, and services from a distance.
It is essential to note that the provisions do not extend to instances where work is brought home outside regular working hours.
Mortgage Interest Tax Credit
The Finance Bill 2023 introduces a temporary one-year Mortgage Interest Tax Credit targeted at taxpayers who have made payments for a qualifying loan related to their principal private residence. This credit is exclusively applicable for the tax year 2023.
To be eligible for this relief, homeowners must have an outstanding mortgage balance ranging from €80,000 to €500,000 as of December 31, 2022.
The credit is calculated based on the increase in interest paid in 2023 compared to the interest paid in 2022. The portion qualifying for relief at the standard tax rate of 20% is capped at €6,250 per property, translating to a maximum tax credit of €1,250.
Medical Expenses
Income tax can be reclaimed on certain healthcare expenses, with the standard rate of tax typically applicable for most expenses.
This tax relief is applicable to medical expenses incurred for you or any other individual. It is crucial to make the claim within four years from the year in which the healthcare expenses were incurred. Use our Tax Questionnaire to determine how much you could be owed in rebate.
Dependent Relative Tax Credit
You are eligible to claim a tax rebate if you financially support a relative at your own expense. This claim can be made for your own relative or a relative of your spouse or civil partner.
Supporting a relative at your own expense involves covering the costs of their day-to-day living, especially when they are unable to sustain themselves. As of January 1, 2021, you can receive a tax credit of €245 (€70 for previous years).
However, it's important to note that you won't qualify for this tax credit if your dependent relative's income surpasses €17,404 as of January 1, 2024 (€16,780 for 2023). The income calculation includes all of your dependent relative's income sources, such as social welfare payments, pensions, and deposit interest.
If multiple individuals contribute to maintaining the dependent relative, the tax credit is divided proportionally among them.
Tuition Fees
You are eligible to seek tax relief on qualifying fees, including the student contribution, for third-level education courses. However, the fees must be associated with an approved course at an approved college.
It's important to note that certain charges and levies are not considered for relief, such as administration fees, student centre levy, sports centre charge, and the USI (Union of Students in Ireland) levy.
The individual who pays the fees, whether it's the student or someone else on their behalf, is the one entitled to claim the relief. The maximum allowable amount for a course is €7,000 per person per academic year. Each claim is subject to a single disregard amount, either €3,000 for a full-time student or €1,500 for a part-time student, per tax year.
Single Parent Child Credit
If you are the sole caregiver for a child, you may qualify for the Single Person Child Carer (SPCC) Credit. This child could be your biological child, an adopted child, or any child you support and maintain at your own expense.
Only one parent or guardian is eligible to claim the SPCCC in a given tax year, and you can only claim one credit even if you are caring for more than one child.
This credit has been in effect since January 1, 2014, and its value is now €1,750 per year. This credit can reduce your annual tax by €33.65 per week. Additionally, you might be entitled to an increased rate band of €4,000, providing an extra €4,000 at the 20% tax rate. If you qualify for the SPCC Credit, you automatically become eligible for the increased rate band as well.
