Q – I’m a 66 year old widow and have about €95,000 on deposit with an Irish Bank in my sole name earning 2% . I do not work financially. Can you tell me if the interest on these savings is exempt from DIRT tax and if so, how do I go about claiming this exemption. Mary -Waterford
A – Thanks Mary. The situation with DIRT ( Deposit Interest Retention Tax – for every € 1 earned in interest annually in a financial institution deposit account within the state, the government takes 33 cents as “DIRT” tax ) is as follows: a person and/or his/her spouse who is:
- aged 66 or over or
- is permanently incapacitated and
- their total income (including the gross DIRT Income from interest on your savings) is less than the relevant exemption limit can claim a repayment of DIRT paid by submitting
- Form 54 Claims – Income Tax Repayment Claim for the relevant tax year to your local tax office, along with a certificate from your bank to show the amount of DIRT paid.
- The relevant exemption limits are:
| Status | 2024 |
| Single/Widowed person | €18,000 |
| Married Couple | €36,000 |
| First two children | €575 each |
| Subsequent children | €830 each |
In your case, your DIRT liability for 2024 and following years will be determined by the exemption limits shown above. DIRT tax annually on € 95,000 is € 627 anyway BUT still worth applying for that exemption. Don’t also forget, you can reclaim tax back up to four years on a variety of allowable expenses – medical, dental, pension AVCs etc Simply text MONEYDOCTOR to 53131 – normal SMS rates apply and that will start the ball rolling.