Claiming Tax Back

31 August 2022

Tax credits and tax reliefs reduce the amount of tax we pay; however, many of us miss out as we don’t know they are available or we think the process of applying for a refund is difficult.

You could be missing out on hundreds or thousands of Euro, as experts at Taxback.com confirm the average Irish tax refund is €1,880!

Here are some examples of the expenses that you can claim relief on:

Medical Bills – you can claim tax relief at 20% of the cost of several medical bills e.g. GP appointments, consultant’s fees, prescriptions, hospital treatments, speech and language therapy, mental health treatments, acupuncture, maternity care, IVF, gluten-free food if you are coeliac and diabetic products if you are diabetic. Any medical appliances such as wheelchairs, stair lifts and hearing aids also qualify for tax back.

For every €100 of qualifying medical expenses, you can claim back €20 so if your total annual bill amounts to €500 you can claim €100 back in tax relief!

Dental Expenses – again you can claim 20% of the cost of all non-routine procedures e.g. braces, crowns, veneers, bridges, root-canal, tip replacement, surgical extraction of a wisdom tooth in a hospital etc. My own braces cost €3,800 and I received €760 back in tax relief!

Working From Home – this tax relief has increased over recent years and you can currently claim tax relief against 30% of the cost of electricity, heat and broadband for the days you work from home.

For example, if your heating, electricity and broadband cost €3,000 in 2022 and you work from home on a full-time basis this equates to 235 days of the year, which is approximately 64%. 64% of €3,000 is €1,920 and you can claim against 30% of this which is €576. Depending on your personal rate of tax you will receive a refund of either 20% or 40% of €576 which is €115.20 or €230.40 respectively.

College Fees – You can claim tax relief of 20% on qualifying fees of up to €7,000 for third level education approved courses at an approved college. There is no tax relief on the first €3,000; therefore, the maximum tax relief for the first child is €800 (€4,000 x 20%). If you are paying for subsequent children in the same year, you can claim tax relief on the full €7,000 = €1,400 per additional student.

Nursing Home Fees – Nursing home care can be very expensive; however, you can claim a large amount back in tax relief, up to 40% in fact! If you pay the nursing home cost for a relative, you can claim tax relief at your marginal rate. Assuming an annual cost of €40,000, relief is €16,000 for someone on the 40% tax rate or €8,000 for someone paying 20% income tax. You can also claim relief on the cost of employing a professional home nurse - but this can only be claimed at the standard rate of 20%.

There are lots of other reliefs available and tax relief can be backdated 4 years, so it is not too late to submit your claim. Go to www.revenue.ie to get more information on all of the personal tax credits, exemptions and reliefs that are available. If you want to make a claim but are not confident in doing it yourself there are various websites and local tax advisors who can help but just make sure its on a no rebate, no fee basis so you won’t be charged if you aren’t due a refund!

Lisa Doherty, BBS QFA RPA SIA is a Qualified Financial Advisor, Retirement Planning Advisor & Specialist Investment Advisor. You can contact her through John F. Loughrey Financial Services by telephone on 074-9124002 or by email on lisad@jfl.ie

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