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Tax Credits

Tax Credits. Non-Refundable Tax Credits Deducted from total tax before refundable credits are deducted Cannot produce a refund when deducted from total tax Arise due to personal circumstances or certain expenses incurred. Tax Credits. Personal Tax Credits Single €1,650

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Tax Credits

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  1. Tax Credits Non-Refundable Tax Credits • Deducted from total tax before refundable credits are deducted • Cannot produce a refund when deducted from total tax • Arise due to personal circumstances or certain expenses incurred

  2. Tax Credits Personal Tax Credits • Single €1,650 • Married/Civil Partnership €3,300 • Widowed (no dependent children) €2,190 • Single Person Child Carer €1,650

  3. Tax Credits Single Person Child Carer Tax Credit • Single, Separate or Widowed individual • Maintains qualifying child • Claimed by the primary carer • Cannot claim if: • Parent is cohabiting • Parent is entitled to married credit or widowed person’s credit in year of bereavement

  4. Tax Credits Single Person Child Carer Tax Credit • Qualifying child: • Under 18 years of age • Over 18 and in full time education or training for a trade or profession for period of not less than 2 years • Permanently incapacitated And • Is child of claimant or in custody of claimant, and maintained by claimant

  5. Tax Credits Additional Widowed Parent Tax Credit • Qualifying child must reside with claimant • Claimant must not be remarried • Claimant not cohabiting • Available in addition to one parent family credit

  6. Tax Credits Additional Widowed Parent Tax Credit • Credit is claimed for the 5 years after the year of bereavement • Year 1 €3,600 • Year 2 €3,150 • Year 3 €2,700 • Year 4 €2,250 • Year 5 €1,800

  7. Tax Credits Home Carer Tax Credit • Available for jointly assessed married (civil partnership) couple only • One spouse must care for a dependent • Normally dependent resides with couple • Home carer with income of less than €7,200 qualifies for full credit of €1,000 • Credit not available when income exceeds €9,200

  8. Tax Credits Home Carer Tax Credit • Where home carer’s income is between €7,200 and €9,200 the credit is restricted as follows: • €1,000 less ((€Income - €7,200)/2)

  9. Tax Credits Age Tax Credit • €245 for single person, €490 for married couple • Full €490 credit for married couple given when one spouse reaches 65 in the tax year, no further credit when second spouse turns 65

  10. Tax Credits Blind Persons Tax Credit • Credit of €1,650 when either spouse is blind for all or part of the year • Where both spouses are blind the credit is €3,300

  11. Tax Credits Employee (PAYE) Tax Credit • Employees who receive income under Schedule E entitled to this credit • Full Credit is €1,650 but must have Schedule E income of at least €8,250 • Schedule E income under €8,250 is multiplied by 20% to get the amount of the credit

  12. Tax Credits Employee (PAYE) Tax Credit • Proprietary directors are not entitled to this credit • Spouse of proprietary director not entitled to credit if he/she works for same company • A spouse of a self-employed individual, employed by the self-employed individual is not entitled to the credit • A child of proprietary director will qualify for the credit if they work full time for the company and earn at least €4,572 from the employment

  13. Tax Credits Earned Income Tax Credit • Available to individuals who have earned income (trade, profession or employment) but not entitled to the Employee tax credit • Earned Income tax credit is €550 • If an individual qualifies for both Earned Income tax credit and the Employee tax credit the maximum amount that can be claimed in respect of both credits is €1,650

  14. Tax Credits Earned Income Tax Credit • The individual must have at least €2,750 earned income in order to qualify for the full credit • If the qualifying income is less than €2,750 the credit is calculated as 20% of the qualifying income

  15. Tax Credits Incapacitated Child Credit • €3,300 • Child under 18 and permanently incapacitated • Child over 18 but became permanently incapacitated before 21 or before completing full time education • Credit can be split proportionally

  16. Tax Credits Dependent Relative Credit • €70 • Available where a person maintains at their own expense: • A relative or spouses relative incapacitated by old age or infirmity • A widowed parent of the taxpayer or their spouse • A son or daughter who resides with the taxpayer and the taxpayer is dependent on

  17. Tax Credits Dependent Relative Credit • Dependent relative cannot have income of more than €14,060

  18. Tax Credits Rent Tax Credit • Where taxpayer rents his/her main residence • Calculated as 20% of lower of: • Rent paid • Specified limit

  19. Tax Credits Rent Tax Credit • Specified Limits • Single under 55 €400 • Single over 55 €800 • Married under 55 €800 • Married over 55 €1,600 • Credit to be phased out by 2018 with reducing specified limits

  20. Tax Credits Third Level Education Tax Credit • Approved College and Approved Course • Relief for Tuition Fees only • First €3,000 of fees for full time course and first €1,500 of fees for part time course do not qualify for relief • Maximum amount of fees on which relief is available is €7,000

  21. Tax Credits Third Level Education Tax Credit • Calculated as follows: • Determine the amount of qualifying fees (Lower of amount paid or €7,000) • Deduct €1,500 (part-time course) or €3,000 (full-time course) • Multiply the remainder by 20%

  22. Tax Credits Medical Expenses Tax Credit • Credit is calculated as 20% of qualifying expenses • A number of medical expenses qualify • Qualifying expenses reduced by any reimbursed amounts

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