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25-02-2021, 08:12   #1
LJ3103
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Join Date: May 2010
Posts: 83
Amended F11 for unclaimed tax credit

Hi

We have recently been given additional tax credits which means I have had to amend my previous income tax returns (form 11). As previous tax years are fully paid, I expected to get a refund for the full tax credit amount each year.

However, according to the revised return, we are only due a refund for the tax credit amount minus the tax payable for that year (fully paid in all instances). So for simplicity sake let’s say our additional tax credit is €1000, then as far as we were concerned in 2019 the allocation of the new credit means we overpaid tax by €1000 on the revised return and that’s what we would be refunded.

However for that year, we had a tax liability of €600, which was paid at the time. The now amended form 11 is telling us we overpaid by only €400, as it is subtracting the €600 liability and payment we made at the time.

There could be a very simple explanation for this, but I just can’t see it.... can someone explain this to me? As at this stage it feels that we are paying the 2019 tax liability twice

Thanks
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25-02-2021, 15:25   #2
Deckyalrite
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Join Date: Sep 2007
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The tax credit would only serve to reduce your Income Tax liability, it should not have any inference on the USC & PRSI.

It might be the case that your tax liability is made up of Income Tax , PRSI & USC and that they have only refunded the Income Tax element due to the additional credit.
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26-02-2021, 00:32   #3
mystic86
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Join Date: Feb 2005
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What?

You think you get the full value of the credit when you don't actually owe that much in the first place?!

In the example you set out, figure out how much of the 600 liability you had is income tax, that's the amount you'll get refunded.
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