As the festive season comes to a close, it’s time to turn our attention to recouping some of the money spent over Christmas to help alleviate the January blues. And what better method than securing a tax refund?
From the 1st of January, workers can apply for a tax rebate on a broad range of expenses, with the funds arriving in their bank accounts in less than a week.
Tax expert Johnny O’Callaghan encourages everyone to claim back what they’re owed for 2024, and if you haven’t done so for previous years, don’t overlook 2023, 2022 and 2021.
You can reclaim 20% on the cost of GP, doctor and consultant fees or hospital treatments for you and your children as Medical Expenses tax relief. You can also get 20% back on the cost of prescriptions, physiotherapy, laser eye treatment, IVF or fertility treatments, maternity care, non-routine dental work like braces, crowns and root canals and any other medical treatment not covered by your health insurance.
“This is a big one and a lot of people aren’t claiming it, for some reason,” says Johnny. This tax credit was introduced in 2022 and is available to tenants or parents paying rent on behalf of a student (as long as they are under 23 at the start of their first year). For 2022 and 2023 the credit is worth €500 for an individual and €1,000 for a couple. But in 2024/2025 it’s increased and it’s now worth up to €1000 a year for a single person and up to €2,000 a year for married couples and civil partners who are jointly assessed.
The Mortgage Interest Relief tax credit is on offer for homeowners who shelled out more dough on their mortgage interest in 2023 or 2024, compared to their 2022 payments.
To grab this financial lifeline, your mortgage balance must have been betwixt €80,000 and €500,000 come the stroke of midnight on 31 December 2022. “This is especially beneficial to mortgage holders who have a variable rate or they have come off a fixed rate since 2022 and their payments have gone up. You can claim 20% back on the increased interest you paid”.
For those who’ve stumped up cash into their pension pot outside of payroll’s watchful eye, there’s the chance to snag some Pension Relief tax back on the stash you’ve saved. The slice of tax relief you’re due is tied to how many candles you blew out on your last birthday cake – if you’re not yet 30, you’re looking at a nifty 15% of your earnings being eligible. That figure climbs the ladder with age, peaking at a hefty 40% for the over-60 crowd.
As for the Remote Working Relief, all you home office heroes be it full-timers or part-timers, listen up! You can claw back 30% of what you’ve burnt on electricity, heating, and broadband costs over the year. It’s all worked out based on the sum total of days you spent avoiding the commute and the digits on the bills that fluttered through your letterbox.
To claim your tax back for 2024, or any of the other previous three years, follow our simple step-by-step guide:
- Visit www.ros.ie/myaccount-web/sign_in and sign in to My Account using your PPS number, date of birth and password
- Under PAYE Services, select ‘Review Your Tax’
- Request a statement of Liability. From there you will see a preliminary result of either an overpayment or an underpayment. This amount is before you have claimed any tax back.
- If you wish to proceed, click ‘complete income tax return’. From there, you can claim expenses, additional tax credits or relief.
- Submit your form.
Your claim can take a week or two to process, if successful any funds owed to you will be paid directly to your bank account within about three working days. It’s also important to confirm Revenue has your correct bank details so you can get any refund owed to you to the right account.
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