Your Taxes: A How-To

What you need todo as an employee in Ireland to sort out your tax affairs…

Rent Tax Credit in 4 simple steps…

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Rent tax credit
DISCLAIMER: This information is a summary only and is not intended to constitute tax advice. For tax advice consult a Tax Advisor only.

A lot has been said about how difficult it is to apply for the Rent Tax Credit. We’re going to try to demystify this process for you so you can apply for your own Rent Tax Credit. We’ll try to keep this guide updated. Best check the Revenue.ie website yourself though, before applying. Or consult a Tax Advisor.

Don’t forget also to download our free Do I qualify for Rent Tax Credit? cheatsheet in pdf format to determine whether or not you qualify for this Tax credit.

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Do you qualify?

Download our do I qualify for Rent Tax Credit? cheatsheet.

Claiming your Rent Tax Credit

You’ll need to file your tax return before you can claim for the Rent Tax Credit.

Since you are filing your return anyway, you should also apply for a number of other Tax Credits, Reliefs and Allowances, to earn the highest Tax Refund possible.

Check out our Tax Refund Assessment tool to discover how much you may be owed by the taxman. Including for calculating your Rent Tax Credit amount due.

Assessment

1. First, follow the guide to filing your Tax Return…

Follow our simple step-by-step guide to filing your own Tax Return (including a handy video as well as screenshots).

How to Claim a Tax Refund in Ireland (incl. video)

2. Enter your Tax credits & reliefs

After logging into myAccount and starting the Tax Return filing process. (see above). When you come to step 4 – Tax credits & reliefs. Follow the instructions and screenshots below to claim your Rent Tax Credit.

Tax credits and reliefs
Choose Rent Tax Credit from Tax credits and reliefs of your Tax return (see step 1)

3. Fill out the Rent Tax Credit Form

The Rent Tax Credit form is where we submit our rent details and find out how much you’re owed in Tax Credit.

hap rent credit
Are you a Supported Tenant?

RTB registered
Is your landlord RTB registered?

What’s the address of your rental property?

Rent Tax credit
What’s your landlord’s / agent’s address?

rent tax credit form
Your Rent Tax Credit due.
Get help

4. Finish your Tax Return

Finish submitting your Tax return using the Tax return guide. Congratulations, the Revenue Service will now credit your Tax bill. You’ll pay less Tax in the future.

How to Claim a Tax Refund in Ireland (incl. video)

Some notes:

Things to note regarding your Rent Tax Credit submission.

  • The Rent Tax Credit is a Tax Credit, that means you have to have paid sufficient income tax to claim against ie. paid sufficient PAYE. Both USC and PRSI don’t count here as Tax paid. (See below)
  • If you’ve made €3,750 in qualifying rent payments over the tax year and you’ve paid at least €3,750 PAYE income, you’ll be entitled to the full Rent Tax Credit of €750 for 2024 if you’re assessed as a single person. €1,500 if you’re assessed as a couple.
  • You can claim your Rent Tax Credit for every year since its introduction in 2022.
  • If you haven’t reached the €3,750 in rent paid you’ll still receive partial credit ie. 20% of your rent paid for the year.
  • Your security deposit, bills for repairs or maintenance, your board, laundry, utilities or other services should not be included in your rent amount.
  • You don’t need to upload documentation eg. Rent receipts to claim the Rent Tax Credit. You should keep these receipts anyway though in case you get audited by the taxman at some point.
  • If a number of tenants pay the rent for a property, each individual or couple can claim the Rent Tax Credit for the rent they pay.

Calculating how much Rent Tax Credit you are due?

The amount of the credit is 20% of your rent payments in the year, up to a maximum credit of:

  • €750 for an individual
  • €1,500 for a couple who are jointly assessed for tax

If a smaller amount would reduce your income tax to zero, that amount is the maximum credit you can get. For 2022 and 2023, the credit was €500 for an individual and €1,000 for a couple.

Example:

Let’s calculate Ben’s Rent Tax Credit. We’ll use 3 key figures. Ben’s Rent Tax Credit will be the lower of these three figures.

The total of all rent payments made by Ben of €10,000 at 20%€2000
The specified amount of €3,750 at 20% for single assessment€750
The amount required to reduce Ben’s PAYE Income Tax liability to nil€16,000
So, Ben’s Rent Tax Credit is €750. Substitute your own key figures above for row 1 and row 3. Your Rent Tax Credit is the lowest figure of the three figures.

Confused by the calculation?

Check out our Tax Refund Assessment tool to discover how much you may be owed by the taxman.

Tax tool

Emergency Tax in Ireland: A Guide for Young Workers

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Emergency Tax Explained - mytaxhero.ie
DISCLAIMER: This information is a summary only and is not intended to constitute tax advice. For tax advice consult a Tax Advisor only.

Emergency tax guide!

Welcome to Ireland! As you embark on your new job and settle into this beautiful country, there’s an important aspect of your finances you need to understand: emergency tax. At MyTaxHero.ie, we want to ensure you’re well-informed and can navigate your taxes with ease. Here’s a simple guide to help you grasp the concept of emergency tax and how it affects you.

ASSESSMENT

What is Emergency Tax?

Emergency tax is a higher rate of tax that may be applied to your income if your employer doesn’t have the necessary tax information to calculate your standard tax deductions. This situation can arise if you’ve just started a new job and haven’t yet provided your employer with your Personal Public Service Number (PPSN) or if you haven’t completed the required tax forms.

Why Does Emergency Tax Exist?

Emergency tax is a temporary measure designed to ensure that the correct amount of tax is eventually paid. It acts as a safeguard for the government, ensuring that individuals pay their due taxes until their correct tax details are established. While it can seem a bit daunting, don’t worry—it’s usually a straightforward issue to resolve.

How Does It Affect Your Pay?

When you’re on emergency tax, your take-home pay might be lower than expected because you’re being taxed at a higher rate. Instead of your regular tax credits and rate bands being applied, emergency tax rates are used, which are less favorable. This means more money is withheld from your paycheck initially, but it’s important to know that this is only temporary.

Steps to Avoid or Resolve Emergency Tax

  1. Get Your PPSN: Ensure you have your Personal Public Service Number (PPSN). This unique identifier is crucial for all your tax and social welfare activities in Ireland. If you don’t have one, apply for it as soon as possible.
  2. Register with Revenue: Use the Revenue Online Service (ROS) to register your employment. This involves declaring your new job so the tax authorities can allocate your tax credits correctly.
  3. Complete Form 12A: If you’re starting your first job in Ireland, you might need to complete a Form 12A (Application for a Certificate of Tax Credits and Standard Rate Cut-Off Point).
  4. Provide Details to Your Employer: Once you have your PPSN and have registered with Revenue, give your employer these details. They’ll use this information to request your tax credits and standard rate band from Revenue.
  5. Check Your Pay Slips: Keep an eye on your pay slips to ensure that emergency tax is no longer being applied. Once your correct tax details are in place, any overpaid tax should be refunded in subsequent paychecks.

APPLY FOR REFUND

Conclusion

Emergency tax can be an unexpected hurdle for new workers in Ireland, but understanding it and taking the right steps can help you avoid or quickly resolve it. At MyTaxHero.ie, we’re here to assist you with any tax-related queries and ensure your transition to the Irish tax system is as smooth as possible. Remember, if you ever find yourself confused or in need of help, don’t hesitate to reach out to our team.

Welcome to Ireland, and happy working!

Dara Burke
Web Entrepreneur
Dara is the founder of myTaxHero.ie, an organisation whose mission is to help young workers survive the cost-of-living and housing crisis in Ireland. Dara spent ten years abroad, living and working in Asia, the US, the Subcontinent and elsewhere. He returned home over a decade ago. After experiencing housing instability himself during a bout of serious illness. He does what he can to pressure the powers-that-be into coming to terms with the mess they’ve created.

Working from home Tax Relief. How to claim for free… (incl. video)

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Claiming Tax Reliefs
DISCLAIMER: This information is a summary only and is not intended to constitute tax advice. For tax advice consult a Tax Advisor only.
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Working from home Tax Relief. The simple guide…

A PAYE worker in Ireland should claim remote workers relief for several beneficial reasons:

  1. Reduction in Taxable Income: Remote workers relief can lower your taxable income by allowing you to claim certain expenses incurred while working from home. This can result in a lower overall tax bill.
  2. Expense Reimbursement: You can claim for a portion of home utility costs, such as electricity, heating, and broadband, which are necessary for your work. This means you are not fully out of pocket for these additional expenses.
  3. Increased Disposable Income: By reducing your tax liability, you effectively increase your disposable income, providing you with more financial flexibility.
  4. Offset Additional Costs: Working from home often leads to additional costs that you wouldn’t incur if you were working in an office, such as higher utility bills. Claiming remote workers relief helps offset these costs.
  5. Simplified Claim Process: The process for claiming remote workers relief has been simplified and can be done through the myAccount portal, making it convenient and straightforward.
  6. Encouragement of Remote Work: By claiming this relief, you support and benefit from government incentives aimed at encouraging remote work, which can have broader benefits such as reducing commuting time and costs, and promoting a better work-life balance.
  7. Financial Relief During Difficult Times: Especially during times like the COVID-19 pandemic, when many were required to work from home, this relief can provide significant financial support and relief.
  8. Awareness of Tax Benefits: Claiming this relief can increase your awareness of other potential tax benefits and reliefs that you may be eligible for, promoting better financial literacy and management.
  9. Compliance and Fairness: Ensuring you claim all available reliefs means you are fully compliant with tax laws and not overpaying on taxes. It ensures fairness in your tax contributions based on your actual working conditions.
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By claiming remote workers relief, a PAYE worker in Ireland can benefit financially by reducing their tax liability, receiving reimbursement for additional expenses incurred while working from home, and ensuring fair tax treatment in line with their working situation.

Dara Burke
Web Entrepreneur
Dara is the founder of myTaxHero.ie, an organisation whose mission is to help young workers survive the cost-of-living and housing crisis in Ireland. Dara spent ten years abroad, living and working in Asia, the US, the Subcontinent and elsewhere. He returned home over a decade ago. After experiencing housing instability himself during a bout of serious illness. He does what he can to pressure the powers-that-be into coming to terms with the mess they’ve created.

Managing your Receipts for a Tax Refund (incl. video)

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Keeping track of your receipts for a tax refund
DISCLAIMER: This information is a summary only and is not intended to constitute tax advice. For tax advice consult a Tax Advisor only.

PRO TIP: If the Revenue Service website gives you an error similar to ‘file size too large’ when you upload the photos of your receipts. Send your images to yourself as an email attachment file first. Your email provider (eg. Gmail, Hotmail, Apple Mail etc.) will optimize the filesizes automatically. Then simply download the image files from your email inbox and upload these optimized image files to the Revenue website instead.

As an employee in Ireland you should use the Receipt Tracker on the myAccount Revenue Service website for several key reasons:

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  1. Efficient Record-Keeping: The Receipt Tracker helps to organize and store receipts for various expenses, making it easier to keep accurate records for tax purposes. This is particularly useful for tracking expenses that can be claimed as tax deductions or credits.
  2. Claiming Tax Reliefs: By recording receipts for eligible expenses, such as medical expenses, educational fees, and home improvement costs, workers can ensure they have the necessary documentation to claim tax reliefs and credits. This can potentially reduce their overall tax liability.
  3. Simplified Tax Returns: Having all receipts stored in one place simplifies the process of completing end-of-year tax returns. The Receipt Tracker integrates with the tax filing system, making it easier to input the necessary information and reducing the risk of errors.
  4. Audit Preparedness: In the event of a tax audit, having well-organized and easily accessible receipts can provide the necessary documentation to support claims made on tax returns. This can help avoid potential penalties and fines.
  5. Real-Time Tracking: The tool allows for real-time tracking of expenses throughout the year, providing a clear and up-to-date view of potential tax-deductible expenses. This ongoing tracking can help in better financial planning and budgeting.
  6. Digital Storage: Storing receipts digitally reduces the risk of losing important documents and eliminates the need for physical storage space. Digital receipts are also less prone to damage over time compared to paper receipts.
  7. Convenience: The Receipt Tracker is accessible through myAccount, meaning workers can upload and manage their receipts from any device with internet access, at any time. This convenience encourages consistent record-keeping.
  8. Environmentally Friendly: Using a digital system reduces the need for paper receipts, contributing to environmentally friendly practices by minimizing paper waste.

PRO TIP: Ask your Pharmacy, Dental Clinic and Medical Clinic to print all your receipts for the previous 4 fiscal years for you. They will have them on file. You can claim a tax refund for the previous 4 years.

By utilizing the Receipt Tracker on myAccount, PAYE workers in Ireland can ensure they maximize their tax reliefs, maintain accurate financial records, and streamline the process of managing their tax affairs, all while contributing to a more organized and environmentally conscious approach to record-keeping.

Dara Burke
Web Entrepreneur
Dara is the founder of myTaxHero.ie, an organisation whose mission is to help young workers survive the cost-of-living and housing crisis in Ireland. Dara spent ten years abroad, living and working in Asia, the US, the Subcontinent and elsewhere. He returned home over a decade ago. After experiencing housing instability himself during a bout of serious illness. He does what he can to pressure the powers-that-be into coming to terms with the mess they’ve created.

Applying for a Statement of Liability (incl. video)

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Applying for a Tax Refund
DISCLAIMER: This information is a summary only and is not intended to constitute tax advice. For tax advice consult a Tax Advisor only.
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An Irish PAYE worker should request a Statement of Liability (formerly known as a P21) for several important reasons:

  1. Tax Refunds: The Statement of Liability helps determine if you have overpaid tax during the year. If you have, it will show the amount you are due to be refunded.
  2. Tax Underpayments: Conversely, the statement will also indicate if you have underpaid tax, helping you understand any liabilities you need to address to avoid penalties or interest.
  3. Tax Credits and Reliefs: It provides a summary of the tax credits and reliefs you have claimed. This helps ensure you are receiving all the tax benefits you are entitled to.
  4. Income Verification: The statement serves as an official document verifying your income and tax paid for a specific year. This can be useful for personal financial management and for applications that require proof of income, such as loan applications or social welfare benefits.
  5. Review of Financial Information: It offers a comprehensive review of your financial information, allowing you to verify that all the information recorded by Revenue is accurate and up to date.
  6. End-of-Year Balancing Statement: It acts as an end-of-year balancing statement, summarizing your total income, tax paid, and any other relevant financial details. This can be useful for personal records and financial planning.
  7. Peace of Mind: Knowing that your tax affairs are in order and that there are no surprises can provide peace of mind, reducing stress related to potential tax issues.
  8. Future Tax Planning: Understanding your tax liabilities and refunds can help you make informed decisions for future financial planning, including adjustments to your tax credits or deductions for the coming year.
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By requesting a Statement of Liability, a PAYE worker can ensure their tax affairs are accurately managed, take advantage of any potential refunds, and avoid unexpected tax bills.

Dara Burke
Web Entrepreneur
Dara is the founder of myTaxHero.ie, an organisation whose mission is to help young workers survive the cost-of-living and housing crisis in Ireland. Dara spent ten years abroad, living and working in Asia, the US, the Subcontinent and elsewhere. He returned home over a decade ago. After experiencing housing instability himself during a bout of serious illness. He does what he can to pressure the powers-that-be into coming to terms with the mess they’ve created.

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