The average tax refund is rising as the cost of living crisis increases the number of applications to the IRS

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The average amount that taxpayers claim back from earnings has risen to nearly €1,900.

It comes as the cost of living crisis prompts more people to reclaim money they own.

According to a survey by claims specialist Taxback.com, men are more active than women in claiming refunds and for higher amounts.

The average tax refund has increased by more than 700 euros in recent years and is now 1,888 euros.

Recent figures, emerging from a Dáil question by Sinn Féin finance spokesman Pearse Doherty, showed hundreds of thousands of taxpayers overpaid in taxes.

The figures showed that 300 million euros in revenue was overpaid by 450,000 taxpayers in 2021.

In 2019, around 620 million euros were paid too much.

According to Taxback.com, the average refund requested by its customers between the end of 2020 and the end of 2021 was €1,880. In previous years, this was €1,076.

Medical expense tax refunds proved to be the most commonly claimed relief over the past year. The average reimbursement for men last year was €490 compared to €470 for women.

Joanne Murphy, Managing Director of Taxback.com, said: “Although we are only halfway through the year, 2022 has already reached record levels of inflation, rising to a 40-year high and hitting the pockets of Irish households hard.

“Most of us are trying to tighten our belts in one way or another. And yet in the last few weeks we have learned that 450,000 people paid a total of 300 million euros too much in income tax in 2021.”

Ms Murphy said going back to the last year people were still able to make claims, revenue records show around €620million has been overpaid since 2019.

In addition to medical expenses, the items of expenditure that are reclaimed from those affected also include tuition fees, flat-rate expenses and home office relief.

Ms Murphy said: “The reality is that in this country we really aren’t good at collecting the relief and reimbursements that are owed – which is a shame as many households across the country could really benefit from that extra cash injection.”

She said many people are still unwilling to apply for a tax refund, possibly because they think it’s a difficult process or hassle.

“But the reality is it’s very easy and just requires a little preparation to keep receipts or go to your doctor’s office or dentist etc. to get the ones you don’t have.”

Ms Murphy encouraged everyone to take a bigger inventory of their financial wellbeing and make sure they aren’t overpaying in taxes.

Revenue is writing to taxpayers who may have overpaid or underpaid taxes during these years, urging them to file returns to finalize their tax position.

In the past month, Revenue has written to more than 50,000 PAYE taxpayers.

https://www.independent.ie/business/personal-finance/average-tax-refund-rises-as-cost-of-living-crisis-boosts-number-of-claims-at-revenue-41895807.html The average tax refund is rising as the cost of living crisis increases the number of applications to the IRS

Fry Electronics Team

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