Tax Back when unemployed?

byrner88

is it possible to claim tax back when you become unemployed? i was working the last 7 years and got let go about 2 months ago and someone mentioned i might be able to claim tax back but they wer'nt too sure.

dbran

Hi

Complete form p50 and submit it to you local tax office along with your p45.

Kind Regards


Dbran

namenotavailablE

You'll be able to get back your monthly tax credit amount up to the amount you have paid in tax in the year to date.
For example, if you have paid PAYE of 1200 since January and have monthly tax credits of 305, you can recover 305 for each of the next 3 months (total 915 reclaimed) and 285 in the final month (total 1200 reclaimed).

Sum Sea

Don't forget to include your JA in your calculations

rgnmb

Could I ask why it is 3 months you get?

Also if you were also submitting a tax relief claim for tuition fees (excess of 5000) where would that fall into all this, if you send the P50?

Thanks!

gerrybbadd

The 3 months used is just as an example. What this means is if you paid 1200 tax so far this year, and your credit is 305 a month, 1200 is no longer correct next month, as your credits are still acummulating as the year goes on. i.e 1200 - 305 tax credits = 895 tax due next month.

The tuition fees relief available is €5000.00 @ 20%. If your fees were paid in the current year, your yearly tax credits will increase. If they relate to a previous year, you'll recieve a P21 balancing statement, and a refund of up to €1000.00 (based on a claim of €5000.00 @ 20%, and provided this amount of tax had been paid throughout the year, and the correct tax was paid).

rgnmb

so is there any way of calculating this?

let say you have paid 2800 in tax so far, and tax credits are 320/month, and you finish up work, mid september, to return to college, after working since 2008, pay 5000+ tuition fees.

gerrybbadd

If you state on your P50 form that you will not return to work before 31/12/2009, as you will be in full time education, Revenue can do a Final Cessation for the year, and issue you a P21 Bal. Statement. Your entire year's liability can then be assessed. So if earnings for the year to Sept. are e.g. €20000.00 with tax deducted of e.g.€1200.00, and assuming Standard Rate Band etc are default (Single person) your SRCOP will be €35400.00, meaning you can earn this amount for the entire year @ 20% tax rate.

€20000 @ 20% = €4000 Tax payable LESS Tax credits of €3660.00 (again an e.g) = €340.00 Total tax payable for the year.

Your refund is the difference of tax paid & total payable - €1200.00 - €340.00 = €860.00 Over payment (refund due)

As stated previously, tuition fees relief is restricted to €5000.00 @ 20% = €1000.00 maximum refund.

In this case, €340.00 is the amount of refund you would get from Tuition Fees as refund is restricted also to tax paid.

Up

Try http://www.irishtaxcalculator.com it has refund calculator.