Tax Return Credits and Deductions FAQs

• Up to 30 years of age – 15% of earnings subject to income cap
• 30 to 39 years of age – 20% of earnings subject to income cap
• 40 to 49 years of age – 25% of earnings subject to income cap
• 50 to 54 years of age – 30% of earnings subject to income cap
• 55 to 59 years of age – 35% of earnings subject to income cap
• 60 years or over – 40% of earnings subject to income cap

Yes. This is called a backdated claim and can be used by PAYE earners to create tax refunds or by the self-employed to reduce last year’s tax bill.

Our free pension tax relief calculator will do all the work for you and tell you what is the maximum pension contribution you can make to get maximum tax relief.

A personal tax credit directly reduces the income tax you owe. It’s based on your personal status.

2025 personal tax credit amounts:

• Single: €2,000
• Married or civil partners (joint assessment): €4,000
• Single person child carer: €1,900
• Blind person: €1,950
• Incapacitated child: €3,800

Revenue applies this automatically if they know your status but let them know if your circumstances change.

If jointly assessed, married couples or civil partners get a €4,000 personal tax credit or double the single rate. If separately assessed, each gets €2,000.

Joint assessment often reduces tax by allowing shared credits and rate bands, and is often the most advantageous option for married couples.

The One-Parent Family Tax Credit was replaced by the Single Person Child Carer Credit (SPCCC).

To qualify for the SPCCC (€1,900 in 2025):

• You must be single, widowed, separated, divorced, or a surviving civil partner—not cohabiting or remarried.
• You must have custody of a dependent child who lives with you.
• The child must be under 18 or in full-time education or training, or permanently incapacitated.
• Only one person can claim the credit per child, per year.
• You must be the primary carer or be assigned the credit by the primary carer (if the child stays with you at least 100 days/year).
• Apply using Form SPCC1.

If you’re widowed or a surviving civil partner:

• In the year of bereavement, you keep the full Married/Civil Partner’s Tax Credit (€4,000).
• In following years:
  • Without dependent children: claim the Widowed Person’s Tax Credit (€2,540).
  • With dependent children: you may qualify for the Widowed Parent Tax Credit (see next FAQ).

You must not have remarried or be cohabiting.

The Widowed Parent’s Tax Credit is for widowed individuals or surviving civil partners with dependent children. It lasts for five years after the year of bereavement.

Amounts in 2025:

• 1st year: €3,600
• 2nd year: €3,150
• 3rd year: €2,700
• 4th year: €2,250
• 5th year: €1,800

You must have a dependent child living with you and not be remarried or cohabiting. Only one credit can be claimed per year, regardless of how many children you have.

If you don’t have dependent children, you can’t claim the Widowed Parent’s Tax Credit. You may instead claim the Widowed Person’s Tax Credit (€2,540 per year) for the years following your bereavement. You must not be remarried or cohabiting.

In the year of bereavement, you’re still entitled to the Married/Civil Partner’s Tax Credit (€4,000).

The PAYE credit (also called the Employee Tax Credit) reduces the income tax owed by employees who pay tax through the PAYE system.

• The credit is €2,000 for 2025.
• You must have income taxed under PAYE (e.g. wages or salary).
• You don’t qualify if you’re self-employed or a proprietary director (someone who owns more than 15% of a company).
• If jointly assessed, both spouses can claim the PAYE credit if eligible.

The credit only reduces your income tax—if your tax bill is less than €2,000, you only get credit for that amount.

No. Self-employed people do not qualify for the PAYE credit.

However, they can claim the Earned Income Credit—also €2,000 in 2025.

If someone has both PAYE and self-employed income, they may qualify for both credits, but the combined total is capped at €2,000.

No. If you’re employed by your spouse (who is a proprietary director or self-employed), you cannot claim the PAYE credit.

Under Irish tax law, this income is classed as “excluded emoluments” and doesn’t qualify. This rule applies even if you’re not a shareholder or director.

Sometimes. A child can claim the PAYE credit if all of the following apply:

• The parent is not a proprietary director or self-employed.
• The child is employed full-time throughout the year.
• PAYE is correctly operated on their wages.
• The child earns at least €4,572 in the year.

If these conditions aren’t met, the child may instead qualify for the Earned Income Credit.

A proprietary director is someone who owns or controls more than 15% of a private company’s ordinary share capital.

They do not qualify for the PAYE credit on income from that company.

This rule also affects their spouse and children if their income comes from the same company. However, children may still qualify in limited cases if employed full-time and PAYE is correctly applied.

No. Proprietary directors do not qualify for the PAYE credit on income from their own company.

They may be eligible for the Earned Income Credit (€2,000 in 2025) instead.

No. If the spouse’s income comes from the proprietary director’s company, it’s considered excluded emoluments, and the PAYE credit doesn’t apply.

The spouse may be eligible for the Earned Income Credit instead.

Yes—but only on income from a non-proprietary directorship (i.e. where they don’t control more than 15% of the company).

They can’t claim the PAYE credit on income from their own company, but they can use it to offset tax from a directorship where they have no controlling interest.

Medical expenses in Ireland are claimed as a tax credit at the standard rate of 20%.

For example, if you spend €1,000 on eligible medical expenses, you can reduce your tax bill by €200 (20% of €1,000).

The exception is nursing home expenses, which can be claimed at your marginal rate of tax (20% or 40%).

You can claim this relief through myAccount or ROS, but only for expenses not reimbursed by insurance or other sources.

Form Med 2 is used to claim tax relief on non-routine dental treatments, like crowns, braces, or root canal work. Routine treatments (e.g. cleaning, fillings) don’t qualify.

• Your dentist provides the Med 2 form after treatment.
• You don’t need to send it to Revenue but must keep it for 6 years.
• Relief is given at 20% of the cost (e.g. €2,000 treatment = €400 credit).
• Claims are made online through myAccount or ROS.

You must keep all medical receipts for 6 years from the end of the tax year you claim them.

• Original or digital copies (e.g. uploaded via the Receipts Tracker in myAccount/ROS) are acceptable.
• You don’t need to send receipts with your claim but Revenue may ask for them later.
• Failure to retain records could lead to a €1,520 penalty, unless other proof is accepted.

Yes — you can claim tax relief on medical expenses incurred abroad if:

• The treatment qualifies (e.g. GP visit, hospital care – not cosmetic procedures).
• The practitioner is legally registered in that country.
• You were not reimbursed (e.g. by insurance).
• You have a proper receipt showing the treatment and cost.

Relief is at 20%, just like Irish medical expenses.

Yes — but only if the treatment was not available in Ireland and certain conditions are met:

• The treatment must be recommended by a doctor.
• It must be provided by a registered medical practitioner abroad.
• You can claim for reasonable travel and accommodation for:
  • The patient
  • One accompanying person (if medically necessary)

You’ll need receipts, and you must retain them for 6 years. Relief is at 20% of eligible costs (e.g. €800 = €160 credit).

You may be entitled to the Age Tax Credit if:

1. You are aged 65 or older during the tax year.
   • If you’re married or in a civil partnership and are jointly assessed, the credit applies if either of you is aged 65 or older.

1. Credit amounts:

1. • €245 if you are single, widowed, a surviving civil partner, or singly assessed.
   • €490 if you are married or in a civil partnership and jointly assessed.

1. How it’s applied:
   The credit is usually applied automatically if Revenue has your date of birth. If it doesn’t appear on your Tax Credit Certificate (TCC), you can claim it through your myAccount on the Revenue website.

No. Tax relief for trade union subscriptions was abolished in 2011. You cannot claim it for the 2025 tax year.

The Incapacitated Child Tax Credit is €3,800 per qualifying child for 2025.

A child qualifies if they are:

• Under 18 and permanently incapacitated due to physical or mental infirmity, or
• Over 18 and became permanently incapacitated before age 21, or while in full-time education or training (lasting at least two years).

You can claim the credit for each qualifying child individually.

To qualify, the following conditions must be met:

1. Permanent incapacity: The child must be unable to maintain themselves due to a mental or physical condition.
2. Age-related rules:
   • Under 18: must be permanently incapacitated.
   • Over 18: must be permanently incapacitated, and:
     • The incapacity arose before age 21, or
     • While in full-time education or training (minimum two years).

1. Other notes:

1. • Applies to stepchildren, adopted children, or foster children if maintained at your own expense.
   • A medical practitioner must certify the condition on Form ICC2.
   • Only one credit is available per child per tax year.
   • The credit can be shared if multiple people contribute to the child’s support.

The tax credit is €305 for the 2025 tax year, subject to meeting the qualifying conditions.

Yes, but only if the relative’s total income is €18,028 or less in 2025. This includes:

• Social welfare,
• Pensions,
• Deposit interest,
• Any other sources of income.

If their income exceeds the limit, you cannot claim the tax credit.

For 2025, the credit is:

• €1,950 for a single person or where one spouse/civil partner is blind.
• €3,900 where both are blind in a jointly assessed couple.

Yes. The tax credit can still apply if:

• Income is €7,200 or less: Full credit of €1,950 applies.
• Income is €7,201–€11,099: The credit is reduced by 50% of the amount above €7,200.
• Income is €11,100 or more: No tax credit is available.

Note: Carer’s Allowance or Carer’s Benefit is not counted as income for this credit.

You may be able to claim a tax credit for tuition fees if the following conditions are met:

1. Approved course and institution
   • The course must be on Revenue’s list of approved third-level or training courses.
   • The college must be in Ireland, the EU, or in certain cases, a publicly funded or accredited university outside the EU.
2. Qualifying fees only
   • Only tuition fees qualify.
   • Charges like registration fees, levies, sports or student centre charges don’t qualify.
3. Fee limits
   • The maximum claimable amount is €7,000 per person, per course, per academic year.
4. Disregarded amounts
   • For full-time courses, the first €3,000 of fees is disregarded.
   • For part-time courses, the first €1,500 is disregarded.
5. Relief rate
   • The tax credit is given at 20% of the qualifying amount (after the disregard).
6. Who can claim
   • Only the person who paid the fees can claim the credit.
   • You can’t claim if the fees were covered by an employer, grant, or scholarship.
7. Course requirements
   • Undergraduate courses: must be at least two academic years.
   • Postgraduate courses: must be 1–4 years and lead to a postgraduate qualification.
   • IT/language training courses: must last at least two years and lead to certification.
8. Refunds
   • If you’re refunded fees after claiming, you must notify Revenue within 21 days.
9. No double claims
   • You can’t claim this credit for fees also used as a business deduction.

Yes, in most cases the tax relief is already applied through your payroll, but here’s how it works:

1. Tax Relief at Source (TRS):
   • The premium is usually reduced by 20% before your employer pays the insurer.
   • However, the full pre-discount amount is treated as a taxable benefit (BIK) and included in your payslip.
2. You still get the credit:
   • Even if your employer pays, you’re entitled to the tax credit at 20%.
   • This should appear on your Tax Credit Certificate (TCC) automatically.
3. If it’s missing:
   • Log in to myAccount → “Manage your tax” → “Add new credits” → “Medical Insurance Relief.”
4. For past years:
   • Request a Statement of Liability via myAccount and complete your Income Tax Return to claim.

Note:
If your employer only pays part of the premium, you only get relief on the portion they pay.

Yes—if the policy is Revenue-approved and designed to replace income in the event of illness or disability.

Here’s how it works:

1. Eligibility:
   • You can claim tax relief if you personally pay the premiums or if they are deducted from your gross salary.
2. Relief limit:
   • You can only claim up to 10% of your total income in premiums each tax year.
3. How relief is given:
   • If your employer operates a net pay arrangement, the relief is given automatically.
   • If not, you must claim via:
     • myAccount (PAYE taxpayers) or
     • ROS (self-employed), by including it in your return.
4. Conditions:
   • The policy must be a Permanent Health Benefit Scheme approved by Revenue.
   • Premiums must not be reimbursed by your employer.
5. Tax on benefits:
   • If you receive payments under the policy, they are subject to income tax and USC but not PRSI.

The credit is €1,950 in 2025.

It’s reduced if the home carer earns more than €7,200. If their income reaches €11,100 or more, the credit is no longer available.

Rent relief was a tax credit for private renters, but it was phased out and is no longer available for new claims since 2018.

However, a new Rent Tax Credit is now available from 2022 onwards. For 2025, the credit is:

• €500 per person, or
• €1,000 for jointly assessed couples.

To qualify:

• You must rent your main home from a private landlord or under an approved housing scheme.
• The tenancy must be registered with the RTB (Residential Tenancies Board).

No, tax relief on interest paid for unsecured or secured home loans ended after the 2020 tax year.

Previously, limited relief was available if the loan was used to buy, improve, or repair your main home, but this has now ended.

The EIIS (formerly the BES – Business Expansion Scheme) provides tax relief to individuals who invest in qualifying Irish companies.

Key benefits and rules:

• Tax relief (from 2024):
  • Relief rates now vary (50%–125%) based on company stage and type of investment.
• Maximum annual investment:
  • Up to €250,000 for 4-year investments.
  • Up to €500,000 for 7-year investments.
• Eligibility:
  • Must invest in a qualifying trading company.
  • You can’t hold any other capital in the company.
  • You must keep the investment for at least 4 years.
• E-filing required: Revenue must be notified electronically by the investor or fund manager.

EIIS is a way to support Irish businesses while reducing your tax bill—but be sure to meet all the conditions to avoid a clawback.

Yes, but it depends on the type of payment and legal agreement in place.

Relief is allowed if:

• The payments are legally enforceable (e.g. court order or legal agreement).
• The payments are made to a former spouse (not for children).
• The payer and recipient aren’t taxed as a couple.

Not allowed if:

• The payments are voluntary (not legally enforceable).
• The payments are for children – these are not taxable or deductible.
• The couple opts to be taxed jointly—in that case, maintenance is ignored for tax purposes.

In order to qualify for relief, ensure there’s a legal arrangement and the payments are for the former spouse only.

Yes. If you’re totally incapacitated due to illness or disability, you may claim relief on the cost of employing a carer.

Key details:

• Relief is at your marginal rate (up to 40%).
• You can claim on up to €75,000 per year of care costs.
• You can hire the carer directly (you’ll need to register as an employer), or through an agency.
• You can’t claim this relief if you’re also claiming the Incapacitated Child Tax Credit or Dependent Relative Credit for the same person.

This relief can significantly reduce your tax if you’re paying for personal care.

It depends on the amount of additional income you have.

• Form 12: Use this if your net non-PAYE income is under €5,000 and your gross non-PAYE income is under €30,000.
  → File it through myAccount.
• Form 11: Use this if your net non-PAYE income is €5,000 or more, or your gross non-PAYE income is over €30,000.
  → File it through ROS (Revenue Online Service).
  → You’re considered a “chargeable person” and must do a self-assessment.

At FastTax.ie, we guide you through completing the Form 11 as easily and as stress-free as possible.

You may be entitled to Transborder Workers’ Relief if you meet the following conditions:

1. Tax Residency: You must be tax resident in Ireland.
2. Work Location: Your employment must be in a country that has a double taxation agreement with Ireland (e.g., the UK).
3. Foreign Tax Paid: You must have paid tax on your UK income and cannot claim a refund for this tax.
4. Presence in Ireland: You must spend at least one day in Ireland during each week you work in the UK.
5. Employment Duration: Your employment in the UK should last at least 13 weeks in the tax year.
6. Private Sector Employment: This relief applies only to private sector jobs and not to public sector roles.

If you qualify, your UK earnings will generally be exempt from Irish tax, as the tax you paid in the UK will cover your Irish tax liability. However, you cannot claim this relief if you are already receiving other specific reliefs, such as the Seafarers’ Allowance or Foreign Earnings Deduction (FED).

To claim, you should file a self-assessment tax return in Ireland and provide supporting documentation, including proof of tax paid in the UK and evidence of your presence in Ireland.

Yes, there is a four-year time limit to claim tax refunds in Ireland. You must submit your claim within four years from the end of the relevant tax year.

For example:

• Claims for the 2021 tax year must be submitted by 31 December 2025.
• Claims for the 2025 tax year must be submitted by 31 December 2029.

If you miss the four-year deadline, Revenue will not accept your claim. Be sure to gather all necessary documents, such as proof of tax paid abroad and evidence of your Irish tax residency, to support your claim.

A tax credit reduces the actual amount of tax you owe. A tax deduction reduces your taxable income before your tax is calculated. Tax Credits give a euro-for-euro reduction in your tax bill. Deductions reduce the income that gets taxed.

• Tax credit example: If you owe €5,000 in tax and have a €2,000 credit, you pay €3,000. Tax credits include the basic personal tax credit and employee tax credit.
• Tax deduction example: If you earn €50,000 and get a €5,000 deduction, your taxable profit is calculated on €45,000.

You may claim the credit if:

1. You maintain a dependent relative at your own expense, and
2. The relative is one of the following:
   • Your or your spouse’s widowed parent,
   • A parent who is a surviving civil partner,
   • A son/daughter you depend on due to age/infirmity (only if they live with you and you depend on them).
3. Income limit: If claiming for a child on whom you are dependent, the child’s total income must not exceed €18,028 in 2025.
4. If they live outside Ireland: You must prove they’re unable to support themselves and that you substantially maintain them.
5. Shared maintenance: If more than one person contributes, the credit is divided.
6. Documentation: Keep supporting records for 6 years in case of review.
7. Note: Children normally do not qualify as dependent relatives unless you depend on them due to infirmity or old age.

It depends on how much you earn and how it’s taxed. The fasttax.ie tax return system will make this much easier than the Revenue ROS system if you have to file an online Form 11 tax return.

You don’t need to file a tax return if:

• Your net non-PAYE income is under €5,000,
• And your gross non-PAYE income is under €30,000,
• And it’s coded into your PAYE tax (via your tax credits/cut-off point).

In this case, you can report it using Form 12 in myAccount.

You must file a tax return (Form 11) if:

• Your net non-PAYE income is €5,000 or more, or
• Your gross non-PAYE income is over €30,000.

If your only non-PAYE income is interest subject to DIRT (like bank interest), you don’t need to file a return.

Year of Marriage Relief is a refund available in the year you get married, if you paid more tax as two single people than you would have under joint assessment.

How it works:

• You’re taxed as single for the year of marriage.
• After the year ends, if joint assessment would’ve saved you tax, you can claim a refund of the difference, scaled based on how many months you were married in that year.

To claim:

• You and your spouse must apply jointly in writing to Revenue after the tax year ends.
• The refund (if due) is split between both of you based on the tax each person paid.

Income Tax relief is available on pension contributions, and it is provided at your marginal (highest) rate of tax. However, there are specific limits and conditions:

1. Age-Related Limits: The percentage of earnings that can be contributed to a pension plan and qualify for tax relief depends on your age:
   • Under 30: 15% of earnings
   • 30–39: 20% of earnings
   • 40–49: 25% of earnings
   • 50–54: 30% of earnings
   • 55–59: 35% of earnings
   • 60 and over: 40% of earnings
   • Our FastTax.ie pension relief calculator will automatically tell you the maximum amount you can contribute to a pension to maximise your relief. Try our free calculator.

1. Earnings Cap: The maximum amount of earnings that qualify for tax relief is €115,000. Even if your income exceeds this amount, tax relief is calculated only on the first €115,000.
2. Eligible Pension Plans: Tax relief is available for contributions to:

1. • Occupational pension schemes
   • Personal Retirement Savings Accounts (PRSAs)
   • Retirement Annuity Contracts (RACs)
   • Pan-European Personal Pension Products (PEPPs)
   • Qualifying overseas plans

1. No Relief for USC or PRSI: Tax relief is only available for Income Tax, not for Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).
2. Claiming Relief:

1. • If contributions are deducted from your salary, relief is applied automatically.
   • If not deducted at source, claim relief by filing an income tax return through myAccount or ROS.

1. Backdating Relief: You can make a pension contribution before 31st October and elect to backdate the relief to the previous tax year.
2. Carrying Forward Relief: Unused relief can be carried forward to future tax years.

FastTax.ie’s calculators make it easy for to you to ensure you are making the highest possible contributions for tax efficiency. For a quick estimate, see our free calculator: https://fasttax.ie/tax-calculators/pension-contributions-tax-relief-calculator/