January is a good time to claim tax relief on a range of expenses, says local TD

January offers a good opportunity for people to avail of the tax reliefs to which they are entitled on expenses including medical bills and working from home, a Fine Gael Minister of State has said.

Peter Burke, who also trained as a Chartered Accountant, said: “Managing your finances can often seem like a daunting task, but many individuals and families can avail of number of tax breaks they may not have known they were entitled to.

“People can claim relief on the cost of health expenses, which can be yours or those of a family member. 20% tax back can be claimed on health and medical expenses and non-routine dental expenses. This includes GP visits, blood tests, specialist consultations and all monies spent on prescriptions.

“You also get 20% tax back on the cost of private medical insurance, which is taken at source. Medical expenses can be claimed easily by using the myAccount facility on the Revenue website and ensuring you keep the receipts for what you are claiming. Revenue also have an app now where you can take a photos of receipts over the course of the year, which are all stored for when you carry out your tax return in January.

“PAYE workers can also claim e-working expenses incurred across last year. In 2021, the allowable cost was 10% of electricity and heat and 30% of broadband.

“However in line with Government policy to facilitate and support remote working, Finance Minister Paschal Donohoe announced on Budget Day that, from January 1st, an income tax deduction amounting to 30% of the cost of vouched expenses for heat, electricity and internet incurred while working from home can be claimed by taxpayers. The employee must have incurred the cost and it is the responsibility of the employee to retain proof such as receipts.

“Revenue advise that the simplest way for taxpayers to claim their e-working expenses and other tax credit entitlements is by using the myAccount facility on the Revenue website.

“Also, the Government recently approved the establishment of the Electricity Costs Emergency Benefit Scheme under which a payment of €100 will be made to each domestic electricity customer.

“This is one of a range of measures to mitigate the effects of the unprecedented rise in electricity prices on householders. The scheme is currently being finalised, but it will be automatic and will apply to all customers.

“Tax relief of 20% can also be claimed on third level tuition fees, as well as housing tax reliefs for home renovations and renting a room.

“The start of the year is a good opportunity for people to organise their financial affairs and also to shop around to see if they can secure better offers by switching providers on a range of services.

“It’s definitely worth sitting down and taking the time to claim for certain expenses as it can result in hundreds of euro back in your pocket, and if you have any queries on specific reliefs, please feel free to contact my office,” Minister Burke concluded.