In this blog our Irish tax adviser looks at three tax tips for every family
1. Are you claiming the correct tax credits?
Widowed parents, married couples, single parents, home carers or those with incapacitated children or dependent relatives are all entitled to additional tax credits. Check you are claiming the correct credits from this list
2. Are you claiming tax relief on medical expenses?
Income Tax relief is available at 20% for qualifying health expenses paid by you in respect of any individual, with the exception of nursing home fees which are allowed at 40%.
Examples of qualifying health expenses are payments for:
- doctor’s and consultant’s services
- routine and maternity care for women during pregnancy
- diagnostic procedures recommended by a practitioner
- services in hospitals or treatment facilities such as clinics, where the services are either: provided by a practitioner or diagnostic procedures recommended by a practitioner
- transport by ambulance
- in-vitro fertilization (IVF)
- acupuncture (only where provided by a practitioner)
- non-routine dental care
- treatment from a psychologist or psychotherapist where either: the psychologist or psychotherapist is a practitioner or you are referred for a diagnostic procedure by a psychiatrist
- additional expenses for a kidney patient
- nursing home and additional nursing care expenses.
You can also claim tax relief on the following if you are prescribed, referred or advised to, by a practitioner:
- Drugs and medicines
- Orthoptic or similar treatment (treatment for squints and eye movement disorders)
- Physiotherapy or similar treatment (such as an osteopath or bone setter)
- Podiatry or chiropody costs
- Special diet expenses for coeliacs and diabetics
- Cost of purchasing, maintaining and repairing medical, surgical, dental or nursing appliances.
Regarding children and healthcare qualifying health expenses include:
- suffering from a life-threatening illness or permanent disability
- who needs speech and language therapy or educational psychological assessment
Health expenses which you cannot claim for are listed here
You also cannot claim relief for any expenditure that has been reimbursed by any insurance company i.e. VHI, Laya etc.
You can claim tax relief for health expenses carried out abroad provided the practitioner is qualified to practice in the country.
The cost of gluten free foods for coeliacs is allowed. As this condition is generally ongoing, a letter instead of prescriptions from a doctor stating that the taxpayer is a coeliac sufferer is acceptable. Receipts from supermarkets in addition to receipts from a pharmacist are acceptable.
Also the cost of food products manufactured specifically for diabetics is an allowable expense for the purpose of a health expense claim. Also glucometre machines for a diabetic.
Time limit for claiming refunds
There is a four year time limit for claiming income tax refunds. PAYE tax payers seeking an income tax refund for 2015 must submit their claim to Revenue by the 31st December 2019.
3. Are you claiming flat rate expense for your employment?
Special flat rate allowances are allowed to certain categories of workers such as teachers, nurses, journalists and construction workers. Details of these are listed here. It is worth checking with your trade union or professional body to see if such an arrangement is in place for you. This list is available here
Overall
It is in your interest to keep Revenue up to date of your personal information to ensure the correct tax credits and flat rate expenses are provided to you. If you have not done so previously review your bank statements for the last four years to identify the qualifying medical expenses which you can now claim to obtain an income tax refund.
To obtain help with your tax affairs Book A Call or email caroline@charlespcrowley.com