Tax breaks for ordinary people worth billions going abegging.'

Hundreds of millions in backdated tax breaks appear to be ‘going abegging’ because only a tiny portion of people are claiming all of what they are due.

Savvy taxpayers grabbed €400m back in rebates last month for 2024.

But nearly as much again is as yet unclaimed for 2024.

And this could be multiplied if claims were backdated for four years as every taxpayer is entitled to do, the latest Revenue figures show.

Almost 550,000 taxpayers made a claim for 2024 by January 29, Revenue revealed this week.

That compares to just over 300,000 in 2020, so more and more people are ‘getting the message.’

Yet a massive number still don’t bother to file returns, leaving hundreds of millions of taxpayers’ money to stuff Government coffers.

“A further €389 million (in tax) may have been overpaid in 2024, and I therefore encourage all PAYE taxpayers to log on to Revenue’s myAccount service to finalise their tax position as soon as they can,” said Dan Oosthuizen from Revenue’s PAYE Services.

He also reminded taxpayers that they have four years to claim back the money, which means you could multiply your gains.

Of the returns filed to date this year, over 80% (approximately 444,000) got tax back. And refunds have already been issued to these savvy taxpayers.

Tax returns for 2024*

	Received Rebate	Paid more tax
Number of taxpayers	443,938	65,971
Total amount	€400m	€8.2m
Average	€901	€124
*Filed up to 29/1/25

Revenue figures show the average rebate for January was €901

But tax specialist Taxback.com claims its customers get even more: “The average Taxback customer gets €1880. Most Irish taxpayers are entitled to a tax refund  – so it’s definitely worth checking!”

We can also reveal the top six ways to get back money from Revenue – and how to do it.

These involved claiming for expenses related to (in order): health, rent, tuition fees, mortgage interest, remote working, and flat rate expenses (see guide below)

Although more claims for 2024 will be filed as the year progresses, the breakdown of claims seems to show a massive shortfall compared to the number of potential claimants.

Type of tax relief	Number of claimants
Health expenses	131,218
Rent tax credit	112,305
Remote working relief	57,124
Flat rate expenses	47,222
Tuition fees	24,745
Mortgage interest credit	2,566

1. Health expenses (131,218)

Far and away the biggest tax-break for PAYE workers are medical expenses.

A total  of 131,218 people claimed these for 2024 up to January 29, Revenue stats tell us.

Yet this still seems to show a massive shortfall in potential claims as most PAYE workers would run up some form of medical expense during the year.

So it’s well worthwhile to rummage through your medical records.

You only get 20% back, but it covers a multitude of stuff, apart from the obvious medical expenses, such as GP and consultant visits.

The less obvious ones may include:

• Drugs and medicines

• Non-routine dental expenses

• Special diet expenses for coeliacs and diabetics

• The cost of buying, maintaining medical devices such as hearing aids

Not included are routine dental and eye care and cosmetic surgery (unless it corrects a health issue). (Check details on www.revenue.ie)

2. The Rent tax credit (112,305)

The second biggest tax credit is rent relief, which has seen a big increase in claims after a doubling of the actual relief yet still seems underclaimed given that half a million homes are rented.

For 2022 and 2023, it amounts to €500 per person. For 2024 and 2025, this was doubled to €1,000. \

3. Remote working relief (57,124)

This was the third most popular tax break  in January.

However, yet again, hundreds of thousands more people would seem to be also entitled but not yet claiming this handy relief.

Taxback.com estimates that 22% of Irish workers have spent at least part of their week working from home in recent years.

And they entitled to claim tax relief on many common home utility bills they pay such as those for heating, electricity and broadband. 

4. Flat rate expenses (47,222)

This is intended to help with costs associated with work, for instance, uniforms, tools and equipment. There is a set amount allocated to each occupation - hence the name 'flat rate' expense.

And yet again, given that most jobs seem to be covered by this allowance, it seems that many people who are entitled to it are not bothering to claim.

Part of the explanation for this is that some allocations, particularly for trades, are derisively low – while others, for middle class professions, can be more generous.

5. Tuition fees (24,745)

This can be claimed whether you are paying third level college fees at an approved institution either for yourself or for someone else.

6. Mortgage interest credit (2,566)

Although it made the top six tax breaks for 2024 so far, this still seems a massively underclaimed relief given that there are over half a million mortgages.

Not everyone can claim, however, and it is relatively new dating back only to the Finance Act 2023.

The relief is available to householders who had an outstanding mortgage balance between €80,000 and €500,000 as of 31 December 2022.

The credit is designed to provide relief to people whose mortgages went up substantially in the great interest rate hikes of 2022 and 2023.

It applies only to any increase in interest paid in 2023 or 2024 over interest paid in 2022. In other words, if you were on a fixed rate over that entire period, you won’t get it.

“The amount qualifying for relief at the standard rate of tax (20%) is capped at €6,250 per property. This is equivalent to a maximum tax credit of €1,250,” the Revenue explains.

Other tax breaks

There are also lots of credits not included in the top six. Here are a few choice ones:

Nursing home expenses

These are given at your highest rate of tax (up to 40%) and can be claimed either yourself or a loved one.

Single parents and home carers 

If you care for a child or a dependent person at home, you could be due tax relief worth €1,600.

Married couples tax relief If you were married in recent years and didn’t claim this, you could qualify for a big tax refund, says financial advisor Martina Hennessy. 

This is not on the Revenue list of most-claimed rebates because not that many people get married in any given year. However, it is a big one if you do qualify – and like many others, it is greatly neglected.

“Many married couples are entitled to tax relief in the year after they get married, yet this relief often goes unclaimed.”

Check out www.revenue.ie for a full list of what can and can’t be claimed.

How do I claim?

The myAccount service is a handy way to fill in your tax returns.

Once you make one return, the succeeding ones are pre-populated with all your details, which makes claiming for previous back-dated years a doddle.

Revenue’s myAccount service can be accessed through the Revenue website, or a verified MyGovID account. Detailed guidance, including step-by-step videos are accessible at www.revenue.ie/paye.  

What happens if I owe the Revenue money?

Around 67,000 made an extra payment of tax for 2024 last month – mostly due to extra untaxed income they earned.

“If you owe Revenue money, we’ll work with you to find a suitable payment option,” said Dan Oosthuizen from Revenue.

Any underpayment is normally collected, interest free, by reducing future tax credits over a maximum period of four years.

Orchestra musicians can claim up to €2476 in 'flat rate' expenses.