What Expenses Can I Claim To Minimize My Personal Tax Liability?

Are you claiming all the tax credits on expenses which you qualify for?

Depending on your personal circumstances you are entitled to allowable expenses. Allowable expenses reduce the amount of income on the tax you pay. The standard credits are the personal tax credit and the PAYE tax credits. There are, however more that you could be eligible for.

You can learn more about the expenses you can claim during our Startup Webinar.

Allowable Expenses To Reduce My Personal Tax Liability

Below is a list of some of these expenses you may be able to claim for:

Expenses For Seniors And Those Undergoing Medical Care:

  1. Aged credit – if you are over the age of  65.
  2. Nursing home expenses – Income tax relief is available on fees for nursing homes. You claim tax relief for nursing home fees under the general scheme for tax relief on medical expenses.
  3. Dependent relative credit – if you incur costs maintaining a relative.
  4. Medical expenses – You can claim tax relief online using Revenue’s PAYE Anytime service. You can use Medical form MED1 (pdf) to claim tax relief on all general medical expenses (including dental expenses). You can only claim for medical expenses if you have receipts to prove your claim.

Expenses For Students

  1. Tuition fees for third level – Relief is available per student, per course, per academic year. Relief comes at the standard rate of income tax. Please note Income tax relief is not due on: Administration fees, examination fees or registration fees. Nor is it due on any part of the fees that grants, scholarships, an employer or otherwise cover.
  2. Emergency Tax – Many third level student will encounter emergency tax when they begin working. Emergency Tax is applied if the employer does not receive a Tax Credit Certificate (TCC) or a P45. You can claim back emergency tax by filing a P21 Banking Statement at the end of the tax year.

Expenses For A Parent or Guardian

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Expenses For Parents or Guardians

  1. Home carers credit – A couple in a marriage or civil partnership where one spouse or civil partner is the Home Carer and cares for one/more dependent persons.
  2. One parent family tax credit – A One-Parent Family Tax Credit is a tax credit that is available to a single parent, or a person who has custody of and maintains a child who is living with him or her. This can include someone who is single, widowed, a surviving civil partner, deserted, separated (from spouse or civil partner), divorced or whose civil partnership has been dissolved.
  3. Married tax credit
  4. Incapacitated child tax – The tax credit can be claimed where a claimant proves that he or she was living at any time during the tax year with any child who is permanently incapacitated either physically or mentally from maintaining himself/herself.
    There is also a tax credit available if you employ someone to look after an incapacitated relative
  5. Single Person Child Carer Credit: The Single Person Child Care Credit (SPCCC) is a tax credit that is available to a single person who is a parent of a child or who has custody of and maintains a child who is living with him or her.
  6. Widowed Person or Surviving Civil Partner with dependent child Tax Credit: A widowed person, or a surviving civil partner, with one or more dependent children, following the death of a spouse or civil partner. It is granted in addition to the Widowed Person or Surviving Civil Partner’s Tax Credit and can be claimed for 5 years after the year of death of a spouse or civil partner, once the claimant continues to have one or more dependent children.

The importance of claiming allowable expenses

Claiming your tax credits reduces the amount of tax you pay. A large number of allowable expenses go unclaimed every year because frequently people are unaware that you can claim them. Everyone is entitled to a personal tax credit and if you qualify for any of the tax credits above do not be afraid to claim them as it will allow you to economize and reduce tax payments.

Are you coming to the end of your tax year and wondering how to calculate what you owe? Let us help you submit your tax returns. We will make sure you are compliant and up to date with Revenue.

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