Ways to save income tax

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SPKBhamidipati
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Ways to save income tax

Post by SPKBhamidipati » Tue Jul 09, 2019 8:52 pm

Can someone suggest any ways to save income tax here in Ireland, like the ones in India (PF, ULIPs, mutual funds etc)?

balac_m
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Re: Ways to save income tax

Post by balac_m » Wed Jul 10, 2019 8:21 am

How to lower the tax amount:

1. Make sure you are assessing your tax with the correct civil status. Most of the people are assessing their tax as single and they can only change it if they submit the spouse election form+ marriage certificate. This can be done only if the spouse is present in Ireland and having a PPS number.
2. Those married who are working here alone can claim non-resident aggregation relief at the end of the year.
3. If the spouse is not working or working in part-time, and minding a child, can claim the home carer tax credit of 1500 Euros.
4. Those who spent on hospital bills can claim a part of it.

Investment options without tax:

1. Opt for a pension plan and put some excess money on it. It will not be taxed. For example, if you choose to save €750 a month into your pension. That is a lot of money but if you consider income tax relief at 40% it could cost you just €450 from your take-home pay. The downside is, well! you know!
2. Invest in the post office state savings bonds, the interest rate is not great but it is not taxed. Some plans are giving 16% though. Get more information on https://www.statesavings.ie/our-products

SPKBhamidipati
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Re: Ways to save income tax

Post by SPKBhamidipati » Wed Jul 10, 2019 8:15 pm

Thanks Balac_m. Seems not many ways to save tax, but to lose money :roll:

balac_m
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Re: Ways to save income tax

Post by balac_m » Thu Jul 11, 2019 9:39 am

Unfortunately! It is because of the nature of the welfare state. There are a lot of benefits you are getting for the tax you are paying, even though not immediately. Actually, if you are a medium earner, you can get more from the state than what you are paying.

yellareddyyalluru
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Re: Ways to save income tax

Post by yellareddyyalluru » Thu Jul 11, 2019 12:59 pm

balac_m wrote:
Wed Jul 10, 2019 8:21 am
How to lower the tax amount:

1. Make sure you are assessing your tax with the correct civil status. Most of the people are assessing their tax as single and they can only change it if they submit the spouse election form+ marriage certificate. This can be done only if the spouse is present in Ireland and having a PPS number.
2. Those married who are working here alone can claim non-resident aggregation relief at the end of the year.
3. If the spouse is not working or working in part-time, and minding a child, can claim the home carer tax credit of 1500 Euros.
4. Those who spent on hospital bills can claim a part of it.

Investment options without tax:

1. Opt for a pension plan and put some excess money on it. It will not be taxed. For example, if you choose to save €750 a month into your pension. That is a lot of money but if you consider income tax relief at 40% it could cost you just €450 from your take-home pay. The downside is, well! you know!
2. Invest in the post office state savings bonds, the interest rate is not great but it is not taxed. Some plans are giving 16% though. Get more information on https://www.statesavings.ie/our-products
Option 2 under investment options is not suggested. the return is very meager. Better to invest that money in pension funds. you get 67% return directly.

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