It’s January, so it’s time to trim some of the fat of your tax bill.
Easy tips for saving tax
by Tony Kilcoyne – Kilcoyne & Co.
Most tax reliefs will save you tax 20%, so for every euro you spend on an area where relief is available, you will save 20 cent. There are still a number of reliefs at the marginal rate (41%), namely, relief on pension contributions and nursing home fees.
The most common reliefs are below:
Medical expenses: Family medical expenses are allowable as a tax deduction at 20%. If you have young kids like myself, it’s amazing haw quickly these build up result in substantial tax relief. I would estimate the average family would be looking at a 200-300 Euro refund from medical & dental expenses.
Home carer’s credit: This relief is very often overlooked. There is 810 Euro available for credit if Spouses income is less than 5,080 Euro. This is claimable by married persons who are jointly assessed and where one spouse works at home to care for children, the aged or incapacitated persons.
Rent credit: Tax relief is for Tenants paying rent. You will need all your landlords tax details in order to claim this. The tax credit for persons under 55 years is a maximum of €400 for a single person or €800 for a married couple and for persons over 55 years it is doubled.
Third –level tuition fees: Have you kids in collage or are you up skilling yourself? Tax relief is available in respect of tuition fees (not registration fees) paid to an approved college for an approved course. The maximum qualifying fees are restricted to €5,000.
Service charges: Tax relief may be claimed on a prior year basis on service charges paid. An upper limit of €400 applies.
There are several other credits available, but they are very specific. These would be picked up during a review of your credits.