Tax Credits & Reliefs (Intro)

Introduction

Everybody is entitled to a basic personal tax credit. The amount of your tax credit depends on your personal status i.e. Married, Single, Widowed or One Parent Family. We explain below under each heading the conditions for the relevant tax credit.

In addition, PAYE earners are entitled to a PAYE tax credit. This credit is not allowed to shareholder/directors who own more than 15% of the company. In addition children of such shareholder directors working in the business on a part time basis are not allowed the PAYE credit.

For tax year 2016 a single person who is a PAYE earner can earn up to €16,500 tax free. A married couple with one PAYE earner entitled to the PAYE tax credit can earn up to €24,750 tax free. If both spouses are PAYE earners and entitled to the PAYE tax credit, they can earn up to €33,000 tax free. However PRSI and the Universal Social Charge is payable based on gross income.

We provide information on the following matters in separate articles: