Tax Credits Flashcards
what is a covenant
a legal agreement where 1 person agrees to pay another
payer gets tax relief
who is DIRT exempt
> 65 yo olds
incapacitatted
what is a refundable tax credit
eg tax paid during the year, if it exceeds tax liablity, you get it back
do medical expense payments have to be just for your own expenses
no
what are professional services withholding tax (PSWT)
payments made by accountable persons for certain professional services
eg local authority tax
how are the person tax credits you are eligible to decided
determined by reference to personal circumstances
what is the age tax credit
if you or your spouse is 65+ you get this
how to compute employee tax credit
Schedule E * 20%
to a max 1700
what % relief is given for third level fees
20% up to max 7000
what relief is given for health insurance payments
20%
max 1000 adult
max 500 child
what relief is given for home renovation incentive scheme
13.5%
what are refunable tax credits
tax already paid
examples of refundable tax credits
PAYE
DWT
PSWT
Tax deducted from covenants/annuities
what is an annuity
a fixed amount of money paid to someone each year
children tax credit for one child
575
