Taxes Consolidation Act 1997 section 472AB

Earned income tax credit

Section 472AB provides for the earned income tax credit, which is available to individuals whose earned income does not qualify for the employee (PAYE) tax credit.

• The earned income tax credit is available to individuals with qualifying earned income — broadly, earned income that is not subject to the employee (PAYE) tax credit under section 472.
• The credit is the lower of €2,000 and 20% (the standard rate of income tax) of the individual's qualifying earned income.
• Where an individual is entitled to both the earned income tax credit and the employee (PAYE) tax credit, the combined value of those credits cannot exceed €2,000.
• Under joint assessment, a separate credit may be due in respect of each spouse's or civil partner's qualifying earned income, subject in each case to the €2,000 cap and the interaction with the employee (PAYE) tax credit.