Earned Income Credit

The Earned Income Credit is available since 1 January 2016. It is allowed in respect of the pay that you earn. It 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)
  • and
  • pay earned by proprietary directors.

The credit is not available against your passive or investment income, such as:

  • rental income
  • or
  • deposit interest income.

The credit available is the lower of:

  • €1,350
  • or
  • 20% of your qualifying earned income.

You may have income that qualifies for the Employee Tax Credit and the
Earned Income Tax Credit. If so, 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.

How to claim

Log into myAccount to claim this credit or complete a Form 11. After logging into myAccount select:

  • PAYE services
  • Manage your tax 2019
  • Add new credits.

Note

The Earned Income Credit will be available to claim if you are registed as:
• a proprietary director
• a spouse or civil partner of a proprietary director
• a child of proprietary director
• being in receipt of trading profit or other foreign income.

Examples