In Ireland, the tax credit reduces the amount of Irish income tax payable by taxpayers in a given year. Some tax credits are granted automatically, while others can be claimed either with simple notifications to Revenue, or by filling out forms.
All tax credits are expressed as annual amounts. All non-refundable. These numbers are valid from 1 January 2018 to 31 December 2018.
Video Tax credits in the Republic of Ireland
Personal tax credit
Personal tax credit is provided to all taxpayers. The amount of tax credits varies depending on personal circumstances; in which a person qualifies for some of the credits below, only the highest given.
Maps Tax credits in the Republic of Ireland
PAYE tax credit
The PAYE tax credit is granted to employees and others who are paid most of their money under the PAYE system. This offsets them due to the fact that their taxes are paid throughout the year, rather than near the end of the year. The amount of the PAYE tax credit is EUR1,650; it can not be transferred between pairs.
Age tax credits
A person aged 65 years during the tax year is granted an additional tax credit of EUR245; this amount is EUR490 for married couples and is given as soon as one member of the pair reaches 65.
Relative dependency
A person who maintains a relative at his own expense can claim a tax credit of EUR70, provided that the relative is not more than EUR14,504. A person who is entitled to claim this tax credit can also claim mortgage interest or health insurance assistance for payments made in connection with that relative.
Fisher tax credit
This tax credit has been introduced for 2017 to 2021 inclusive. Tax Credits are calculated at 20% of individual fish income, subject to a maximum tax credit of EUR1,270.
To qualify for a tax credit, an individual must spend a cumulative total of 8 hours per day for at least 80 days a year of deep-sea fishing on registered fishing vessels.
House keeper
Where married couples are jointly assessed for taxes, and one spouse works at home caring for one or more dependent people, the couple can claim a housekeeper's tax credit. To claim full credit of EUR1,200, the guard must earn less than EUR7,200. The credit is reduced by EUR1 for every EUR2 the guard earns above that amount, so a guard who earns more than EUR9,600 can not claim credit, but once granted the credit will remain claimable in the coming years, as long as the couple does not claim a standard tariff band increase for the dual earning partner.
For tax credit purposes, the following people are dependent people:
- Children with whom child compensation is paid (ie children under 16 and 16 or 17 years in full-time education)
- People aged 65 and older
- Persons who are permanently incapable
The dependent person must stay with the caregiver, unless they are related, in which case they must live within 2 km of the guard.
Carer Personal Car Loan
Single Car Loan Child Child's fee of EUR1,650 is granted, in addition to a personal tax credit, to a widow, lonely, separated, or unmarried person, in which a child resides with them for all or part of the tax year. The child must be under 18 years old at the beginning of the tax year, or permanently incapacitated since before he or she is 21 years of age or have left full-time education, or in full-time education for a minimum of two years.
A child is either a stepchild or an adopted child. If a child lives with both parents for part of the year, both parents can claim full credit.
Single Car Loan Child Carer can not be claimed by someone who qualifies for Married Tax Credit, or someone who lives with other people as a married couple. Nor is it given where the child makes money.
References
- In addition to those quoted elsewhere, data taken from the IT1 income leaflet, available online at [1].
Source of the article : Wikipedia
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