The age exemption limits system applies where total income is not more than €17,000 for a single person aged 65 or over and not more than €34,000 in the case of a married couple where one or other spouse is aged 65 or over.
The system applies only as an alternative to the normal system of credits and bands. It is therefore not possible to combine elements of the two systems.
To allow tax relief for medical bills, rent payments, service charge payments etc. where tax has not been paid, as seems to be suggested by the Deputy, would amount to the provision of a subsidy through the tax system and would raise issues of policy, practicality and cost. I have no plans to provide for such a system at this time.
The position in relation to DIRT is different in that it is an actual deduction of tax. It was introduced in 1986 and only two reliefs apply viz. in respect of those aged 65 or over and those who are physically or mentally incapacitated. In these cases, DIRT which is deducted by a financial institution on deposit interest may be refunded if the person claiming the refund is not otherwise liable to income tax on their total income.