Tax Returns

With constituents struggling for every euro, many may not be aware of the savings they can make when filing their tax returns on the 31st of October.

Many of the methods of relief that individuals are entitled to go unclaimed every year – and your constituents may be unaware of some of them. In fact, it is estimated that up to €420 million is going unclaimed by taxpayers each year.

Should you or your constituents have any queries with regards to Revenue in the run up to the approaching deadline, please do not hesitate to contact me directly.

The information provided below will provide you with an overview of the relief available to your constituents.

As always, please contact me if I can assist you with any matter.

Is mise le meas,

Cllr Kenneth N. O'Flynn

Note:

The list below refers only to income tax.
Your tax credits are deducted from your gross tax to arrive at the actual amount of tax that you have to pay, or ‘net’. Even if you start working during a tax year, you will be entitled to a full year’s tax credits. Please check with your local tax office to ensure that you are receiving all the tax credits and relief for the tax year 2010 that you are entitled to before the 31st October 2011.
Please contact Revenue for more information on conditions.


Credits/Relief: See www.revenue.ie for full information on each.
1) Rent-a-room relief
2) Childcare Services
3) Rent Relief for Private Rented Accommodation
4) Tax Relief for Home Mortgage interest (granted at source)
5) Relief for Improvements/Repairs/Non secured Home Loans (claimed by end of year review)
6) Relief on Medical/Health Insurance premiums at source or Revenue approved health Benefit schemes
7) Revenue Job Assist
8) Service (Bin) Charges (can be claimed for up to 4 years)
9) Home Carers
10) Trade Union Subscriptions
11) Health/Medical Expenses Relief (can be claimed for up to 4 years)
12) Tuition Fees
13) Covenants
14) Leasing Farmland
15) Pension Contributions
16) Redundancy & Retirement Annuities
17) Maintenance Payments
18) Business Expansion Scheme
19) Systematic Short Term Workers Relief (Income Tax Exemption for Jobseekers Benefit Recipients)

Personal Tax Credits
The following chart gives details of the main personal tax credits for the tax years 2010 and 2011
Details of personal tax credits for 2010/2011
NB: Civil Partnership changes apply from 1 January 2011 only
Personal CircumstancesTax Year 2010Tax Year 2011
Single Person€1,830€1,650
Married Person or Civil Partner Tax Credit€3,660€3,300
Widowed Person or Surviving Civil Partner qualifying for One Parent Family Tax Credit€1,830€1,650
Widowed Person or Surviving Civil Partner without dependent children€2,430€2,190
Widowed Person or Surviving Civil Partner in year of bereavement €3,660€3,300
One-Parent Family, Widowed or Surviving Civil Partner , Deserted, Separated or Dissolved Civil Partnership, Divorced or Single (with qualifying dependent children, see note 1) €1,830€1,650
Widowed Person or Surviving Civil Partner with dependant child tax credit bereaved in 2010---€3,600
Bereaved in 2009€4,000€3,150
Bereaved in 2008€3,500€2,700
Bereaved in 2007€3,000€2,250
Bereaved in 2006€2,500€1,800
Bereaved in 2005€2,000---
Home Carer (max.) €900€810
PAYE Tax Credit €1,830€1,650
Age Tax Credit if Single or Widowed or Surviving Civil Partner€325€245
Age Tax Credit if Married or In a Civil Partnership €650€490
Incapacitated Child (See note 1) €3,660€3,300
Dependent Relative (See note 1) €80€70
Blind Tax Credit - Single €1,830*€1,650*
Blind Tax Credit - One Spouse or Civil Partner Blind €1,830*€1,650*
Blind Tax Credit - Both Spouses or Civil Partners Blind €3,660*€3,300*
Incapacitated Person - Allowance for Employing a Carer €50,000**max €50,000**max
Tax Rates and Tax Bands
Tax rates and bands applicable to your personal circumstance in tax year 2010 and tax year 2011
NB: Civil Partnership changes apply from 1 January 2011 only
Personal CircumstancesTax Year 2010 Tax Year 2011
Single or Widowed or Surviving Civil Partner without dependent children€36,400 @ 20%, Balance @ 41%€32,800 @ 20%, Balance @ 41%
Single or Widowed or Surviving Civil Partner qualifying for One Parent Family Tax Credit €40,400 @ 20%, Balance @ 41% €36,800 @ 20%, Balance @ 41%
Married or In a Civil Partnership - one Spouse or Civil Partner with income €45,400 @ 20%, Balance @ 41% €41,800 @ 20%, Balance @ 41%
Married or In a Civil Partnership - both Spouses or Civil Partners with income €45,400 @ 20% (with an increase of €27,400 max), Balance @ 41% €41,800 @ 20% (with an increase of €23,800 max), Balance @ 41%


Home Carer's Tax Credit
A tax credit at the standard rate of tax (20%) in the tax years 2010 and 2011 is available for Married Couples or Civil Partners
One Spouse or Civil Partner (the 'home carer') works in the home caring for one or more dependent persons, i.e. a child for whom they are entitled to child benefit from the Department of Social Protection, a person aged 65 or over, or a person who is permanently incapacitated by reason of mental or physical infirmity and the qualifying person normally resides with the Couple for the year.
The home carer’s income is not in excess of €5,080. A reduced tax credit applies where the income is between €5,080 and €6,880 in 2010 or between €5,080 and €6,700 in 2011.
The tax credit is not available to Married Couples or Civil Partners that are taxed as single persons. Neither is the tax credit available to Married Couples or Civil Partners with combined incomes over €45,400 in the tax years 2010 or €41,800 in 2011 and who claim the increased standard rate tax band for dual income Couples.

Health/Medical Expenses Relief
You may claim tax relief on a Form MED 1, at the standard rate of tax (20%), from 1 January 2009 (with the exception of nursing home expenses for which tax relief is still available at your highest rate of tax) for certain medical expenses incurred by you, on your own behalf or on behalf of another person. Most medical expenses, with some exceptions e.g. routine dental and ophthalmic care, qualify for relief.
You cannot claim relief for any expenditure which has been or will be reimbursed, e.g. by Hibernian Aviva Health, Quinn-healthcare, VHI, a Health Authority, or where a compensation payment is made or will be made.

Tuition Fees
Tax relief at the standard rate of tax (20%) in the tax years 2010 and 2011 is available for certain tuition fees. The maximum limit on such qualifying fees for the academic years 2010/2011 is €5,000 and 2011/2012 is €7,000.
2011/2012 only: the first €2,000 of each claim is disregarded for relief, where any one of the students in respect of whom the relief is claimed is a full-time student. In the case of a claim for relief where all the students concerned are studying part-time, the first €1,000 of the claim for relief is disregarded.

Tax Relief Available to Systematic Short-time Workers
The exemption from income tax for Jobseeker's Benefit paid to systematic short-time workers has been extended indefinitely.

Universal Social Charge (USC)
The Universal Social Charge is a tax payable on gross income, including notional pay, after any relief for certain capital allowances, but before pension contributions. The Universal Social Charge is effective with effect from the 1/1/2011 and it replaces the Income Levy and the Health Contribution.
The rates of Universal Social Charge are:
•2% on the first €10,036
•4% on the next €5,980
•7% on the balance.
However, these standard rates are modified in certain circumstances. In the case of individuals aged 70 or over, and individuals who hold full medical cards, the 4% rate applies to all income over €10,036.
There is a surcharge of 3% on individuals who have income from self-employment that exceeds €100,000 in a year, regardless of age. Thus, where such individuals are under 70 years and do not hold a full medical card, a rate of 10% applies to such income and where such individuals are aged over 70 years or hold a full medical card, a rate of 7% applies.
Exempt Categories:
•Where an individual's total income for a year does not exceed €4,004
•All Dept of Social Protection payments
•Income already subjected to DIRT.

PRSI - Self-Employed
Class S (Self-Employed)
Tax Year 2011
Self Employed Income chargeable as below:Total
PRSI on all income4%


Self-employed persons are exempt from Health Contribution where the annual income is €26,000 or less in 2010. The minimum annual PRSI contribution is €253.
Note: Recipients of a Department of Social Welfare Protection Widow's, Widower's or Surviving Civil Partner’s Pension, Deserted Wife’s Benefit/Allowance or One-Parent Family Payment are exempt from paying the Health Contribution in 2010. Holders of a 'Full' Medical Card and people aged 70 and over are also exempt from this contribution in 2010.

2011: The Employee PRSI ceiling has been abolished. The Health Contribution (and the Income Levy) has been abolished and has been replaced with the Universal Social Charge with effect from 1/1/2011

To request any Revenue Form or Leaflet LoCall 1890 306 706 (ROI only), +353 1 7023050 (from abroad), visit any Revenue Office