NO ONE wants to make more money from their income than absolutely necessary.
Yet thousands of Irish people overpay every year and do not claim back what is rightfully theirs.
Currently, taxpayers could lose thousands of dollars in tax refunds if they don’t submit a 2018 tax refund application before the clock strikes midnight on New Year’s Eve, Taxback.com warns.
Because December 31, 2022 is the last day on which a tax refund claim can be made for the year 2018, as the tax refund period is limited to four years.
Applying for a tax refund should be at the top of every taxpayer’s New Year’s to-do list in 2023.
We have put together a guide to filing an income tax return in January 2023 for the years 2019-2022.
WHEN DO I APPLY FOR MY TAX REFUND?
The best time to apply for a tax refund is usually January or February after the end of the previous year.
You can be reinsured for up to four years – which is why those who have not yet applied for 2018 are being asked to do so before the bell of 12pm on New Year’s Eve.
It is important that your taxes are filled out in the correct order.
If the tax office does not have information about your income for the previous year, it will be required before a refund can be processed.
HOW DO I FILL OUT MY TAX RETURN?
The quickest and easiest way to fill out an income tax return is via PAYE Services in myAccount.
To claim additional tax credits or to declare additional income for a prior year, you must complete an income tax return.
You can do this by following these steps:
- Log in to myAccount and perform two-factor authentication (2FA).
- In PAYE Services, click on the “Check your tax 2018-2021” link.
- Request a liability statement
- Click on “Fill out income tax return”
- Request additional tax credits, relief, or expenses for the applicable year
- Submit your form
Your application will take approximately one to two weeks to process, and if successful, your refund will be credited directly to your bank account within approximately three business days.
WHY SHOULD I FILL OUT MY TAX RETURN?
All Pay As You Earn (PAYE) customers must complete an income tax return to:
- Claim additional tax credits, relief or expenses
- Specify ancillary income
- Obtain a liability statement for the year
- Reclaim overpaid taxes or Universal Social Charge (USC).
- Acknowledge any liability for underpaid taxes or USC.
WHAT IF I HAVE UNDERPAID TAX?
If you are in an underpaid position, you may be eligible for additional tax credits and benefits such as B. Health care expenses.
You must complete your 2021 income tax return online via myAccount to:
- Request additional tax credits or relief
- Specify ancillary income.
The additional information you provide may affect your final income tax or USC position.
Beginning January 1, 2022, if your IT or USC underpayment is less than €6,000, you have the option of paying part or all of your liability via the Payments/Refunds card in myAccount OR taking on the full or remaining liability collected interest-free , by reducing your future tax credits from 2022 over a maximum period of four years.
In the case of underpayments of more than €6,000, a dunning notice will be issued stating the amount owed.
Your liability statement will also contain information on how liability will be collected.
TAX CREDITS AND TAX RELIEFS
When you reclaim tax, you typically claim either a tax credit or a tax allowance.
A tax credit works by reducing the amount of tax you pay by the amount of the tax credit. For example, a €500 tax credit would reduce your annual tax liability by €500.
Some tax credits, like the PAYE tax credit, are automatically given to you by the tax office so you don’t have to do anything. However, you will need to manually claim others in your earnings account.
Tax breaks reduce the amount of income on which you pay taxes and usually result in you recovering some of the taxes previously paid.
More than a million taxpayers overpaid by a total of €620 million in 2019, 2020 and 2021 – with the average tax refund for those three years potentially being around €600.
https://www.thesun.ie/money/9968288/how-claim-tax-back-revenue-everything-need-know-thousands/ How to request a tax refund from the IRS – everything you need to know when thousands are overpaying and your chance of a refund ends in days