As a result, over 700,000 Irish taxpayers are in a position for a refund.
30% of PAYE taxpayers overpaid on tax and/or universal social charge (USC) in 2020 to a total of €436 million, according to findings from Revenue.
This means that an estimated 706,000 Irish taxpayers are now in a position to receive a refund based on the amount of tax paid last year.
As well as that, according to taxback.com, if you take in account the fact that you can claim tax refunds dating back for four years, the actual number of people due a refund is higher than the 30% of taxpayers who overpaid last year.
On the back of this information, Taxback.com has released its Customer Index 2020, to demonstrate to the thousands of taxpayers who are owed money exactly what they could and should claim for.
The top reliefs that can be claimed include:
- Medical Expenses
- Tuition Fees
- Flat Rate Expenses
- Working from Home Relief
- Home Carers Credit
- Nursing Home Relief
- Rent a Room Relief
- Employing a Home Carer Tax Relief
- Dependant Relative Credit
- Home Renovation Incentive and Rent Relief (both have now been phased out but can still be claimed for retrospectively in certain circumstances)
Speaking of the findings,
Marian Ryan, Consumer Tax Manager of Taxback.com commented: "The usual suspects of tax credits for medical and dental expenses, Flat Rate Expenses, and tuition fees dominated refunds yet again, but we would expect to see some change in this in 2021, as more people avail of the eWorker relief and perhaps take part in the Stay and Spend Scheme.
"Claiming your tax refund is one of the easiest ways to provide a welcome boost to the coffers, particularly facing into a new year.
"With claims going back over four years, there can be a significant amount to collect, and we would encourage everyone to check their tax status and see what they may be owed from the taxman."
Commenting on the process of claiming tax refunds, Ryan said it is "very straightforward" and only requires a little preparation on behalf of the taxpayer.
She said: "Many people are still unwilling to apply for a tax refund possibly because they believe it’s a difficult process or a ‘hassle’, but the reality is it’s very straightforward, and only requires a little prep in terms of keeping receipts, or following up with your health practice or dentist etc. to obtain the ones you don’t have. In terms of any apprehension regarding contacting Revenue - if you are tax compliant, which the majority of the taxpaying public are, then there is absolutely nothing to fear by submitting a tax refund application."
