What Are Tax Credits?
A tax credit can reduce the amount of tax you pay in a full tax year.
Everyone receives personal tax credits, but depending on your circumstances, you might be entitled to other tax credits.
What Tax Credits Can I Claim?
We have created a list of the main tax credits that may be relevant to you. This list explains:
- What the criteria is to claim these credits.
- What the rate for the credit is.
Married Or Civil Partners Tax Credit
You can qualify for Married or Civil Partners Tax Credit. if:
- You and your partner/spouse are jointly assessed,
- You are separated or divorced and you pay enough voluntary maintenance to maintain your spouse/partner.
The rate of the tax credit for a married person or civil partner is €3,300.
Single Person Child Carer Tax Credit
If you care for a child on your own, you are entitled to the Single Person Child Carer Tax Credit.
To receive this tax credit, the child must be under 18. If they are over 18, they must be in full time education.
The value of this tax credit is €1,650 per year.
Single Person Child Carer Credit
The One Parent Family tax credit is available to a single parent, or to someone who has custody of and maintains a child who is living with them.
This can include someone who is:
- a surviving civil partner,
- separated from their spouse or civil partner,
- divorced or whose civil partnership has been dissolved.
This credit is €1,650 per year and will reduce the tax you pay by €31.73 per week.
Incapacitated Child Tax Credit
You can claim this credit if you have a child who is permanently incapacitated, either physically or mentally and unable to support themselves.
To claim this credit you will need to complete a Form ICC1.
You will also need to get a certified Form ICC2 from the child’s medical practitioner.
The rate for this credit is €3,300.
You can claim tax relief on medical expenses using Revenue’s PAYE service.
You can claim tax relief on all general medical expenses, including dental expense, once you have your receipts.
If you will receive payment from your insurance provider, the HSE or any will receive any other compensation payment you cannot claim relief.
Usually, you will receive tax relief for medical expenses at your standard rate of tax (20%).
Third Level Fees
Tax relief is available for university fees. Relief is available:
- per student,
- per course and
- per academic year
However, relief is not available on; administration fees, examination fees or registration fees.
The relief will not cover any fees that a grant, employer or scholarship pays.
Relief comes at the standard rate of income tax (20%).
The maximum fee you can claim is €7,000 per student per course.
Widowed Parent Tax Credit
A widowed person, or a surviving civil partner, with one or more dependent children, can claim this tax credit.
This credit is granted in addition to the Widowed Person or Surviving Civil Partner’s Tax Credit.
You can claim this credit for 5 years after the year of death of a spouse or civil partner.Only one tax credit is provided, regardless of how many children there are.
With this tax credit, you may also qualify for the Single Person Child Carer Credit.
The Credits Are Broken Down As Follows
- €3,600 in your first year
- €3,150 in your second year
- €2,700 in your third year
- €2,250 in your fourth year
- €1,800 in your fifth year
Dependent Relative Credit
You can claim the Dependent Relative Credit if you care for a relative at your own expense.
To receive this credit, the relative you claim for must be:
- Unable to care for themselves due to incapacity by old age or infirmity,
- Your or your partner’s parent or your or your partner’s child,
- And they must depend on your services due to old age or infirmity.
Unless you are claiming for your child who is caring for you, your relative does not need to live in Ireland to qualify for this credit.
You can receive a tax credit of €70 unless your dependent relative’s income is over €14,753.
Home Carers Credit
A Home Carer Tax Credit is given to married couples or civil partners where one partner is a Home Carer and cares for one or more dependent people. The dependent person cannot be your spouse or civil partner.
You can claim Home Carers Credit if you and your partner are:
- Jointly assessed for tax,
- One of you works in the home caring for the dependent and
- The home carer’s income is under €7,200.
If the home carer’s income is between €7,200 and €9,600 then a reduced tax credit applies.
The Home Carers Credit rate is €1,500.
Age Tax Credit
If you are 65 years or older in the tax year you can claim the Age Tax Credit.
You can also claim the Age Tax Credit for a couple if you and your civil partner or spouse is over 65.
You will be automatically granted the Age Tax Credit in the tax year that you turn 65.
If you are single, widowed, or a surviving civil partner, the age credit is €245 per year.
If you are married or in a civil partnership the tax is €490 for the couple.
Nursing Home Expenses
Income tax relief is available on fees for nursing homes.
If you are paying the fees for a nursing home, you can claim the tax relief whether you are in the nursing home or you are paying for someone else to stay there.
If the nursing home provides 24-hour on-site nursing care you will receive tax relief for at a rate of 40%.