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Make the Most of Your Tax Relief!

Here we look at some tax incentives and reliefs that are available to individuals and families. Each of the incentives below can be claimed by both PAYE taxpayers and the self-employed. Taken together, they can yield significant savings each year for most people. Self-employed individuals can claim these reliefs when completing their annual tax return. PAYE taxpayers can do so by completing a Form 12 tax return or by contacting their local tax office.

Home Carers Allowance

This tax credit amounts to €900 in 2010. It is available to married couples where one spouse works at home while caring for a child or an elderly or incapacitated person.

To qualify, the carer's income (excluding Carer's Allowance) must not exceed €5,080. The relief does not increase if more than one person is cared for.

A reduced tax credit is available where the income is between €5,080 and €6,880.

For example, Joe & Mary Murphy are a married couple. Joe earns €50,000 per year. Mary earns €4,000 from part-time work, and also minds their three young children. Joe and Mary can avail of the €900 tax credit.

Medical Expenses

Tax relief is available on medical expenses incurred by an individual or family. Relief can only be claimed at the 20% tax rate.

Most categories of medical expenses qualify for the relief.

Rent Payments

Tenants living in private rented accommodation are entitled to claim tax credits in respect of rent paid in each tax year. The max. credit for 2010 is €800 for married couples and  €400 for a single person. Tenants aged over 55 years can qualify for increased credits.

Educational Fees

Tax Relief is available for education fees paid to approved Third Level institutions. To qualify, the fees must be in respect of an approved course. The tax credit is 20% of fees paid, up to a maximum of €5,000 in 2010. A similar incentive exists for approved I.T. or foreign language training course fees, up to €1,270. A full list of approved courses in available from the Revenue Commissioners.

Trade Union Subscription

Trade union members can claim a tax credit of €70 in 2010 on membership subscriptions.

Service Charges

Tax relief is granted in respect of service charges paid to a local authority or private contractor. Group water scheme subscriptions for private houses can qualify for relief under this category.  The relief given is 20% of the charges paid.

Medical Insurance & Mortgage Interest

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