Age Credit - where on Form 11?

[Aloysius]

Am just filling out an income tax return for my parents and I can't see where on the form you tick that you are claiming the 650euro "age credit" tax credit. Anyone know where it is?

 

[allthedoyles]

Could it be possible that you will automatically be given the aged tax credit when you enter the dates of birth of both self and spouse ? - and it is noticed that one of your parents are over 65 ?

However don't be fooled into believing that the allocation of the ' aged tax credit ' is your best option .

Check the exemption limits as well :

http://www.revenue.ie/en/tax/it/leaflets/it1.html#section2

 

[Leaky1]

if you fill in their ages on the Form11 the age credit will be given.
By filling in their ages Revenue will also check if the exemption limit applies if their income is below a certain limit.

 

[allthedoyles]

if you fill in their ages on the Form11 the age credit will be given.
By filling in their ages Revenue will also check if the exemption limit applies if their income is below a certain limit.

We recently discovered that our 93 year old neighbour was paying tax on an annual gross income of just €18,000 per annum .

My in-laws were also allocated the ' aged tax credit ' at aged 65 , and tax was deducted from their gross income even though their total income was only € 26,000 per annum .

Why did Revenue not check to see if exemption limit applied ?

 

[Aloysius]

Could it be possible that you will automatically be given the aged tax credit when you enter the dates of birth of both self and spouse ? - and it is noticed that one of your parents are over 65 ?

However don't be fooled into believing that the allocation of the ' aged tax credit ' is your best option .

Check the exemption limits as well :

http://www.revenue.ie/en/tax/it/leaflets/it1.html#section2

Thanks for that, I didn't realise the exemption limits were that high.
Unfortunately they earned 46k so don't qualify but will keep it in mind for future years.

 

[allthedoyles]

Thanks for that, I didn't realise the exemption limits were that high.
Unfortunately they earned 46k so don't qualify but will keep it in mind for future years.

Its not a case of qualifying - it is whichever is most beneficial to the taxpayer .

Under the exemption your parents would pay € 2,400 tax ( € 6,000 @ 40 % )

 

[Leaky1]

We recently discovered that our 93 year old neighbour was paying tax on an annual gross income of just €18,000 per annum .

My in-laws were also allocated the ' aged tax credit ' at aged 65 , and tax was deducted from their gross income even though their total income was only € 26,000 per annum .

Why did Revenue not check to see if exemption limit applied ?

If a review is requested at the end of the year then Revenue check to see if it is more beneficial to give the over-65's individual the benefit of the exemption or additional tax credits.

What was the source of their gross income of €26000? If it was deposit interest they would have to notify the bank directly that they are tax-exempt. If it was pension income then they can request a tax credit certificate be sent to the pension provider saying they are exempt. An end of year review will tidy it all up though and repay any excess tax.

 

[Aloysius]

Its not a case of qualifying - it is whichever is most beneficial to the taxpayer .

Under the exemption your parents would pay € 2,400 tax ( € 6,000 @ 40 % )

When I take off the interest on which DIRT was already paid their income is 38k. Does that make them exempt?
As it is I have them owing 1,500k ie 38k x 20% less personal, PAYE and age credit.

 

[Black Sheep]

Gross income is 46,000 therefore they are above the exemption limit. Revenue would give them the benefit of whichever is the lesser, tax them in the normal way, or tax the 6,000 over the exemption limit @ 40%.(less any tax already paid) Don't forget the age tax credit x 2

Do they both have income.

 

[Black Sheep]

Sorry, mis-read the age tax credit bit of your original post.

Age tax credit will be given automatically when you fill up form 11 as you fill in your DOB on the form