PAYE Tax Refund Guidelines www.TaxCalc.eu/refund

"How To" Guidelines to get yourself a Tax Refund under the Irish PAYE tax system.

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Summary

If you are a PAYE employee in public or private sector then you've probably paid too much tax last year. Online companies are claiming average refunds of hundreds of Euro.Of course you don't need to pay someone to claim your tax back, you can do it yourself and this guideline takes you through it in an easy step by step process.

Not only is it free, much if it can be done online.

So follow the steps below using the TaxCalc.eu calculator when needed.

23 Apr 2012 - adding PAYE anytime examples

Next update: May 2012 with screen shots from Revenue's PAYE Anytime site as part of step 4.

 

 
 

Step 1 - Claim Medical Expenses from Health Insurance (Quinn, Aviva, VHI etc)

If you DON'T have private health insurance skip to step 2.

  • Before you can claim medical expenses from Revenue you'll need to claim back what you can from your health insurance company.
  • The claim forms can usually be downloaded from the Health Insurance web site - see the links to the right.
  • You need to post in the form and receipts to your health insurance company. Photocopy the receipts (or use your camera phone) as they may hold onto the receipts.
  • Wait for the refund from your medical insurance company to arrive, it will take a few days.They may return your receipts and an itemised statement outlining how much they paid for each expense. E.G. if you claimed €60 for a GP visit they may have refunded you €20. The refund amount depends on the type of policy you have. So in our example you pocket the €20 BUT the remaining €40 can now be claimed back from revenue along with the other non-refunded parts of you medical expenses. Off to step 2.

TIP 1.1: Your health insurance Policy renewal date should be on January 1st, if not ask your insurance company to have it changed. Then your policy will be aligned with the tax year making Step 2 much easier in future.

TIP 1.2: If a health insurers has announced a price increases you should be able to delay that price increase by contacting them asking to renew your policy early, just before the new price increase. Then before next renewal shop around for best deal. So in that case ignore Tip1 above for this year.

TIP 1.3: Your health insurance company doesn't always refund you the same items as you can claim back from revenue. For example with Quinn you can claim a portion of a routine dental visit but it is now allowable from revenue. What's important about this is that in step 4 below you must deduct any refunds made by your health insurer - however you should exclude any refund that revenue don't allow (e.g. routine dental visits with Quinn) from that refund (to your advantage). ** I'm cheking correctness of this in AAM **

Health Insurance Claims:

 
 

Step 2 - Claim Medical Expenses from Revenue

  • Many routine medical expenses can be claimed from Revenue, at the standard rate (20% in 2011) of tax you pay using the MED1/MED2 claim forms. Links to the right. The tax year needs to be over before you can claim and you can go back up to 4 years. For nursning homes fees releif is a the top rate (41% in 2011).
  • Form MED 1 is used for example for GP visits, prescriptions, cancer screening, medical appliances etc. Routine dental treatment is excluded but some additional procedures are covered using form MED 2.
  • So print out form MED 1. Filling it out helps you calculate whan your can claim - you don't actually need to do this as there's no need to send in the form.. If you have private insurance then you need to subtract any refund you received from your health insurance company in Step 1.
  • Some non routine dental expenses may be covered on form MED 2 so take a look at it and if there's anything there you think can be claimed then check with your dentist (orthodontic treatment is covered e.g.). Your dentist will advise if anything is claimable and then the dentist will need to fill out and sign MED 2. Update Form MED 1 with the amount claimable on MED 2.
  • Hold on to form MED 1, MED 2 and all the receipts from Step 1. You don't need to post in the any of these forms or receipts as we are goingn to claim online using Revenues PAYE anytime. The only reason to fill out form MED 1 is to help you determine how much you can claim.
  • Make a note of your unclaimed Medical expenses for later use in Step 4.

TIP 2.1 You don't need post in any of the forms, medical receipts or prescriptions to Revenue. However Revenue can ask to see them so keep them safe for at least 4 years.

TIP 2.2 If you find you are paying more that €120 (amount set Jan 2010) per month singly or per family on prescriptions then you should apply for the free Drug Payment Scheme card(s). Application info is available from the Citizens Information site here. So the most you'll ever pay is €120 and even then that €120 can be claimed as per MED 1 form.

Revenue Claim forms

From MED1 pdf

Form MED2 pdf

 

 

Step 3 - Compare Tax actually paid with TaxCalc.eu results

  • For this step you will need your P60 (and spouse P60 if married). Your employer will give you this sometime in January. Now fire up TaxCalc.eu and enter your details for the tax year in question. Change the tax year at the top of the calculator to the correct year- here's a screen shot.(opens in new window) showing the selection of year 2010.
  • Check TaxCalc.eu for the net tax you should have paid versus what your P60(s) say you actually paid. Here's a screen shot from the calculator showing the net tax paid as €1,540 and the P60 show €5000.22. The net tax paid can be seen on the example P60 center left in the section marked "(B) Tax". If the P60 amount is greater than what is showing in the calculator then you should be due a refund. The reason for the difference may be you didn't claim enough credits, so these are checked next.
  • Using the TaxCalc.eu calculator check what credits you should be getting in the Detailed Tab which is at the bottom of the calculator in the 'Calculations and Info' section. Expand the Credits folder to see the itemised credits. Here's an example of a married couple entitled to €7090 in credits.
  • Now check the total amount of credits in the calculator with the combined (if married) credits listed on your P60(s). In the example P60 this credit is €3400 and is shown on the top right hand corner in purple text. So if the P60 credits are lower than listed in the calculator then you can claim those missing credits in Step 4.
  • Note that TaxCalc.eu covers most credits but for a complete list check the link to the right and add any missing ones to your list and claim them in the next step.
  • You may also be entitled to 'Flat Rate Expenses' depending on your profession - see the link.

Tax Calculator: TaxCalc.eu

Example P60

List of tax credits for 2010 & 2011

List of Flat Rate expenses by profession.

 

Step 4 - Claim back tax using Revenue's PAYE anytime

  • Having determined your medical expenses (Step 2) and credits (Step 3) you are now ready to log into PAYE anytime to claim your tax refund.
  • This is done using the Revenue's "PAYE Anytime" for which you need to register - see link to the right.
  • For medical expensed you need to deduct any refund you received from you health insurer but see Tip 1.3 in step 1.
  • 4.1 Logon to PAYE Anytime - Screen shots (screen shots open in a new tab/window)
  • 4.2 Claim Medical Expenses - Worked example with screen shots
  • 4.3 (coming soon)
  • 4.4 (coming soon)
  • 4.5 (coming soon)
  • 4.6 Submit claim(s) (coming soon)

About PAYE anytime

Register for PAYE anytime

Log On to PAYE Anytime (at www.revenue.ie/)

AAM Health Expenses, more info.

 
  Please email me with any errors you find or suggestions. The address is on the home page TaxCalc.eu  
  Disclaimer
I try to ensure the accuracy of information presented here but cannot accept any responsibility for any inconvenience or loss caused by errors or omissions. You use the information provided here, and information that you obtain by following links from these pages, entirely at your own risk. .