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A tax refund can feel like a well-earned bonus, but before you rush to spend it, consider how it could benefit your financial future. Using it wisely can help you tackle important financial goals, whether it’s boosting your savings, reducing debt, or investing in your future.
With a little planning, your refund could be the boost you need to get ahead and feel more financially secure.
Why should you claim?
Did you know that around 300,000 people—about a quarter of the workforce—end up overpaying income tax every year? A lot of them never bother to claim it back!
Many people leave money on the table simply because they’re unaware of the tax reliefs and credits available to them, or they find the idea of dealing with Revenue a bit intimidating. The good news? Those who take the time to file their tax return often pocket an average refund of nearly €700 each year.
There may be a significant amount of unclaimed money available to you. Taking a little time to review your taxes could uncover a pleasant surprise—and put some extra cash back in your pocket.
Tax Reliefs and Credits You Could Claim in Ireland
You can only claim tax refunds for the past four years under PAYE and Self-assessment. For example, refunds for 2021 must be claimed by 31 December 2025—miss the deadline, and you lose the opportunity.
Medical Expenses Relief
- Relief on qualifying medical expenses not covered by insurance, including GP visits, prescriptions, dental work, consultants, and certain fertility treatments.
- Claim at the standard rate of 20%.
Tuition Fees Relief
- Relief for tuition fees paid for approved third-level education.
- A maximum relief of €7,000 per person applies, with specific exclusions for the student contribution.
Rent Tax Credit
- Available for tenants renting private accommodation, subject to qualifying conditions.
- Rent is the amount paid for using a property, excluding costs for utilities, board, or laundry.
- Rent Tax Credit limits 2022-2023: €1,000 for jointly assessed couples; €500 for others.
- Rent Tax Credit limits 2024-2025: €2,000 for jointly assessed couples; €1,000 for others.
Flat Rate Expenses
- Employees in certain occupations can claim relief on specific work-related expenses, such as uniforms or tools.
- Check the approved list for eligible professions on the Revenue’s website.
Be smart with your money. Get a personalised quote today!
Pension Contributions
- Tax relief for contributions made to PRSAs, occupational pension schemes, or AVCs (Additional Voluntary Contributions).
- Relief is at your marginal tax rate, subject to age and income limits.
Home Renovation Incentive (HRI)
- Relief for qualifying renovation or improvement work done on your home by registered contractors.
- The HRI allowed you to claim a tax credit of 13.5% of the total cost of repairs, renovations and improvements.
Dependent Relative Tax Credit
- Available for taxpayers financially supporting a dependent relative, such as a parent, grandparent, or sibling.
- From 1 January 2025, you can claim a tax credit of €305 (€245 for 2021-2024).
- No credit is available for 2025 if your dependent relative’s income exceeds €18,028 (€17,404 for 2024).
Work-From-Home Tax Relief
- Claim relief for a portion of home utility costs (e.g., electricity, heating, broadband) while working remotely.
- Relief is based on a percentage of qualifying expenses.
- If your employer doesn’t cover €3.20 per day or pays less than your costs, you can claim Remote Working Relief at your highest tax rate.
- Relief rates 2022 onwards: Claim 30% of electricity, heating, and broadband costs based on remote workdays.
- Relief rates 2020-2021: Claim 10% for electricity/heating and 30% for broadband based on remote workdays.
Nursing Home Fees
- Tax relief on nursing home expenses at your marginal tax rate.
- Covers long-term care costs for yourself or a dependent relative.
Relief for Mortgage Interest
- The Mortgage Interest Tax Credit applies for tax years 2023 and 2024.
- You must have an Income Tax liability to benefit.
- If the credit exceeds your tax liability, you can receive a refund up to your total tax paid.
- Tax relief is at 20%, with a maximum refund of €1,250 per year per residence.
Ways to Make Your Tax Refund Work for You
You’ve got a tax refund coming your way, now instead of letting it disappear into everyday spending, why not make it work harder for you? Here are a few smart (and practical) ways to put that extra cash to good use.
Build (or Boost) Your Emergency Fund
One in four Irish adults have less than €500 set aside for unexpected expenses, according to a survey. Life can throw surprises our way—whether it’s a burst pipe, a car breakdown, or an unexpected bill.
It’s recommended to have at least three to six months’ worth of expenses saved up as a safety net. If your emergency fund needs a boost, your tax refund could be the perfect chance to get ahead and ease financial worries down the line.
Pay Off High-Interest Debt
If you’re carrying credit card debt or loans with high interest, they could be eating into your hard-earned cash every month. Using your tax refund to clear or reduce this debt can save you a fortune on interest and put you back in control of your finances.
Make your money work for you. Get a quote today!
Invest in Your Future
Consider using your refund to invest in long-term financial growth. Here are some ideas:
- Pension Contributions: Contribute to a PRSA (Personal Retirement Savings Account) or other pension plan to grow your retirement savings and enjoy tax benefits.
- Savings & Investments: Ever thought about putting your money to work? Your tax refund could be a great way to start. You might consider setting up a savings plan to grow your money over time or even a children’s savings plan to give your little ones a financial head start for the future. Whether it’s regular savings, investing in low-risk funds, or something with higher growth potential, starting now could make a big difference down the line.
Fund Your Child’s College Education
College fees and living costs can add up quickly, and planning ahead can ease the financial burden. Whether your little one is starting primary school or already eyeing up universities, putting your refund into a dedicated education fund now can help cover tuition fees, accommodation, or even those extra expenses that come with student life.
Learn more by reading our article, What is the best way to save for your child’s college education?
Upgrade Your Skills or Education
Why not invest in yourself? Whether it’s an online course, a professional qualification, or a new skill, learning something new can boost your career prospects and increase your earning potential.
Home Improvements
If you own a home, your tax refund could go toward energy-efficient upgrades, renovations, or necessary repairs. These investments can increase your property’s value and reduce future costs.
Start or Grow a Business
Have you been thinking about setting up a side business? Whether it’s turning a hobby into an income stream or launching something completely new, your tax refund could cover start-up costs like equipment, marketing, or even a website.
Treat Yourself to a Holiday
Everyone needs a break now and then, whether it’s a weekend away in Dingle or a sunny escape to the Algarve. Using your refund to plan a holiday can be a great way to recharge—just be sure to budget wisely and enjoy it guilt-free.
Plan for Future Expenses
Use your refund to set aside money for upcoming costs, such as back-to-school expenses, NCT fees, or Christmas shopping. Having this money ready can help you avoid dipping into your savings later.
Create a plan for your future. Get a personalised quote today!
Get a Financial Planning Quote
Your tax refund isn’t just extra cash—it’s an opportunity to take control of your financial future. With smart planning, you can use it to tackle immediate needs while also working towards your bigger financial goals.
But knowing where to start can be tricky. That’s where professional financial advice comes in. We provide personalised financial planning based on your unique goals and circumstances, helping you make the most of your refund and ensuring it aligns with your long-term financial well-being.
Don’t leave your financial future to chance—get a financial planning quote today and take the first step toward greater financial security.
We also provide various financial services, such as mortgages, serious illness cover, income protection, pensions, life insurance, health insurance, and savings & investments.
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However, you should always seek individual financial advice for your unique circumstances.
