The New €550 Earned Income Tax Credit

 

Revenue have today issued a short guide to the new Earned Income Tax Credit which comes into effect from 1 January 2016.

The Credit is worth a maximum of €550 per year.

It applies to self-employed individuals and entrepreneurs as well as to owner-directors whose salaries don’t qualify for the normal PAYE employee tax credit of €1,650.

Earned Income Tax Credit

If you are entitled to claim both the Earned Income and Employee Tax Credits, your  combined claim for both is capped at €1,650.

The Earned Income Tax Credit can be claimed, where appropriate, by both spouses.

It does not apply to rental, investment or other “passive” income.