What expenses can be deducted from my taxable income?

Introduction

Are you looking to maximize your tax deductions in Ireland? This FAQ provides essential information on various tax deductible expenses in the Emerald Isle. From work-related expenses and home office deductions to medical and education expenses, we’ve got you covered. Discover how you can optimize your tax returns and ensure you’re taking advantage of all available deductions.

Work-Related Expenses

• Expenses like professional fees, office supplies, and business travel that are wholly and exclusively for the business are generally tax deductible. 
• Home office expenses like phone, internet, office furniture can be partially claimed if there is reasonable business use. Keep records. 
• Rent relief is available now and mortgage interest is relieved at source
• Pre-trading expenses in the 3 years before starting a business may qualify for tax relief. 

Motor Expenses

• Company cars used for personal reasons may incur a Benefit-in-Kind (BIK) tax. 
• Personal cars used for business can claim a tax deduction per km, based on engine size. Not applicable for sole traders.  
• Electric company cars under €45k market value have no BIK if used personally in 2023

Medical Expenses

• Doctor’s fees, prescription drugs, nursing home fees can qualify for 20% tax relief.  
• Nursing home fees can also qualify for 40% tax relief. 
• Claims must be made within 4 years and supported by receipts. 

Education Expenses

• College tuition fees up to €7,000 per course can qualify for 20% tax relief, however the first 3k is disregarded per full time student
• IT and foreign language courses may also qualify if approved.  
• Claims must be made within 4 years and supported by receipts.

In Summary

• Work-related expenses like professional fees, office supplies, and business travel are generally tax deductible for sole traders and companies in Ireland. 
• Home office expenses like phone, internet, office furniture can be partially claimed if there is business use. Rent and mortgage costs may be claimable
• Motor expenses for company cars or personal cars used for business can be complex to calculate. Seek professional advice. 
• Medical expenses like doctor’s fees, prescription drugs, nursing home fees can be claimed at 20% or 40% tax relief. 
• Education expenses like college tuition fees up to €7,000 per course can qualify for 20% tax relief. 

Conclusion

Many work-related and personal expenses can qualify for tax relief in Ireland. Keep detailed records and seek professional advice to ensure proper compliance. The key is proving the expenses are wholly and exclusively for business purposes or medically necessary.