Almost half a million workers could be due refund after paying €600 too much tax

INDONESIAKININEWS.COM - Hundreds of thousands of Irish taxpayers may be in line for a refund after it emerged that almost half a million pe...

INDONESIAKININEWS.COM - Hundreds of thousands of Irish taxpayers may be in line for a refund after it emerged that almost half a million people overpay their PAYE income every year.

The news comes as nearly 500,000 overpaid a total of €300 million in tax last year, which averages as €600 each.

Over the past three years, a total of €620m has been overpaid in income taxes by PAYE workers, according to Revenue.

The figures show that an average taxpayer may be missing out on around €1,000 in tax refunds from Revenue.

Experts at Taxback.com said the average tax refund its customers get is even higher at €1,880.

Figures obtained by Sinn Féin finance spokesman Pearse Doherty show that around 300,000 taxpayers overpaid income tax in 2019.

Revenue puts the overpayment by these workers that year at €170m.

In 2020 some 270,000 are estimated to have overpaid a total of €150m in income taxes.

And last year, €300m was overpaid by 450,000 taxpayers.

Revenue has urged PAYE taxpayers to file a tax return to ensure they get all the tax credits and allowances they are entitled to each year.

Tax experts said many taxpayers might also be missing out on tax credits or reliefs that are not applied automatically during the year.

This could include the home carer tax credit or year of marriage tax relief.

Workers who incur medical or certain dental expenses during the year should also remember they are likely entitled to a refund of 20 per cent of the cost.

Another cause of overpayment of taxes is emergency tax. This is common among young workers or those starting their first employment.

Finance Minister Paschal Donohoe told Mr Doherty in a Dáil reply that Revenue pays out millions of euro to PAYE workers every year who have overpaid their taxes, reports the Independent.

Mr Donohoe stated: “To date, Revenue has refunded €430m to 620,000 taxpayers in respect of the 2021 tax year.

“In respect of tax year 2020, €440m has been refunded to 660,000 taxpayers, while just over €500m was refunded to 800,000 taxpayers in respect of 2019.”

However, millions of euro are still owed to hundreds of thousands of PAYE taxpayers in overpaid income tax, which could go unclaimed unless they file a tax return.

Revenue is currently writing to taxpayers who may have overpaid or underpaid tax in these years, inviting them to submit returns to finalise their tax position.

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

Revenue said it makes preliminary end-of-year statements available to PAYE taxpayers through the myAccount service each year.

It said taxpayers who want to claim a refund for overpaid tax should complete an income tax return.

Mr Doherty urged people to check and claim overpaid tax amid the cost-of-living crisis.

He said the amounts that could be claimed could go towards meeting higher costs of energy, motor fuel, mortgages and food.

Source: irishmirror