BY JOHN ELLIS, FINANCIAL ADVISOR
With the Budget coming down the line people are discussing what benefits may be available by way of tax reliefs and other rebates or repayments. But many PAYE workers in Ireland are unaware that they could be owed thousands of euro in tax rebates from Revenue through tax credits, tax reliefs, or the Universal Social Charge.
New data from Irish Tax Rebates, the country’s leading tax rebate provider, has highlighted a significant generational divide in tax rebate claims, revealing that younger generations are more proactive in claiming their entitlements than older ones.
The analysis shows that Millennials, particularly those born in the early 1990s, are claiming the highest tax refunds. The top recipients are those born in 1991, having received collectively more than €677,000 in rebates. This group is closely followed by those born in 1990 and 1987, indicating a strong awareness among younger adults about their rights to reclaim taxes.
However, the data reveals a stark contrast with older generations, particularly retirees from the 1940s, who are receiving significantly lower tax rebates. For example, individuals born in 1945 received as little as €1,170 in total rebates. This sharp decline suggests that many older people are missing out on potential tax refunds.
This group, known as the ‘Silent Generation’, indicates a significant knowledge gap. Many retirees may not realise that they can still claim tax rebates, especially for pension contributions that were not fully accounted for during their working years. This lack of awareness means that older generations could be missing out on substantial refunds that could ease financial pressures in retirement.
In contrast the data underscores a growing awareness among younger adults, especially those in their late 20s and early 30s, about their entitlements. They are likely more engaged in financial planning and taking proactive steps to maximise their tax returns as they become more established in their careers. With the rising cost of living, younger generations are eager to find ways to increase their disposable income with tax refunds seen as valuable additions.
Claire Murphy, a chartered tax advisor from Irish Tax Rebates, said of the findings: “This data tells a powerful story about how different age groups interact with their tax entitlements. While one might expect older generations to lead in refund amounts, it’s clear that younger people are becoming increasingly proactive about claiming their tax refunds, which is great to see. However, the lower figures for older generations show that there’s still work to be done in making sure everyone is aware of what they are owed.”
The results highlight a critical need for increased awareness across all age groups about potential tax refunds. While younger generations are clearly taking advantage of their entitlements, older individuals may need more guidance and information on how to claim their dues.
Tax refunds can provide significant financial relief, especially for those on a fixed income or in retirement. It is crucial for all individuals, regardless of age, to stay informed about their tax rights and seek professional advice if needed. This proactive approach can help ensure that everyone benefits fully from the tax system and reduces the chances of missing out on potential rebates.
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