Earned income tax credit
Earned Income Credit
The Earned Income Credit is a separate credit to the Employee Tax Credit in that it can also be claimed by people who are self-employed.
Examples of income that qualifies for the earned income credit includes:
- trading income (Case I and II)
- pay earned by proprietary directors ( who own more than 15% of their company)
The credit is not available against your passive or investment income, such as:
- rental income
- deposit interest income.
The credit available is the lower of €1,150 or 20% of your qualifying earned income.
If you have income that qualifies for the Employee Tax Credit and Earned Income Tax Credit, the combined value of these credits cannot exceed the maximum value of the Employee Tax Credit.
This credit cannot be transferred to your spouse or civil partner.
Any queries on the above give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie