Eligible Tax Credits vs Tax Liable to Pay

Irishboard

Hi, would appreciate any help on this.

What if a person's all eligible tax credits exceed the amount of tax he/she is liable to pay?

For example, PAYE, Personal TC, Rent TC, Medical Insurance Relief, Home Care's TC. If I add all above and divide by 12 as I get paid monthly, this amount exceeds my tax I am liable to pay.

How does it work if this is the case? (note that am in the middle of claiming this) Will I not need to pay any tax once they review my case? Or, I still need to pay certain amount of tax and any left over in tax credit will be refunded to me at the end of the year?

Thanks,

Citizenpain

Tax credits are limited to your tax charge in a year-- any excess is lost

Tax 3000
Tax credits 3300
Due - Nil --- you do not get the excess 300

Irishboard

Thanks, do you know what the tax credit limit is? Does it depend on your circumstances?

Citizenpain

Tax credits are available for many many different situaltions and circumstances . there is no limit per say other then some ones that can not be claimed at the same time ---- for instance - you can not claim dependent relative & incapacitated child tax credits at the same time.


most are here

http://www.revenue.ie/en/tax/it/leaflets/it1.html

are you just claiming for 2012 --- or prior years?

Irishboard

I claimed for the last 4 years too. They are currently reviewing my case.