EARNED INCOME TAX CREDIT – WHO IS ELIGIBLE?

by

The Finance Act 2015 introduced the Earned Income Tax Credit for the tax years 2016 onward.

Earned income tax credit, self employed, proprietary director

The earned income tax credit can be claimed by:

A person who has earned income that does not qualify for the PAYE Tax Credit. Examples are the Self Employed and Proprietary Directors. They can claim a maximum income tax credit of €550(2016),€950 (2017) and €1,150 (2018). It is computed at the standard rate of income tax.

Where an individual has earned income that qualifies for the PAYE Tax Credit and the Earned Income Tax Credit, the combined value of both Tax Credits cannot exceed €1,650.