Home Carer Tax Credit
Who can Claim?
A couple in a marriage or civil partnership where one spouse or civil partner is the Home Carer and cares for one/more dependent persons.
Conditions to Qualify
- The couple in a marriage or civil partnership - must be jointly assessed to tax - it does not apply where couples are taxed as single persons.
- Home Carer must care for one/more dependent persons.
- Home Carer's income must not exceed €7,200 for the tax year.
Note: Carer's Allowance from the Department of Social Protection is not taken into account for determining restriction, but is a taxable source of income.
A Dependent Person
- must not be a spouse or civil partner,
- is a child for whom Department of Social Protection Child Benefit is payable,
- is a person aged 65 years or over,
- is a person who is permanently incapacitated by reason of mental / physical infirmity.
Note: Dependent person must normally reside with the couple or if they are relatives they must reside:
- next door in a neighbouring residence,
- on same property,
- within 2 kilometres of claimant.
See Charts for details.
Full tax credit due if the Home Carer's income is less than €7,200. If income is between €7,200 - €9,200, reduced relief granted (see Leaflet IT 66 Home Carer Tax Credit for calculations).
Where this tax credit is claimed the couple are not entitled to the increased standard rate band normally given to couples in a marriage or civil partnership where both spouses or civil partners are in receipt of income. If only one spouse or civil partner has income or the increased standard rate band is sufficient to cover the combined income of both spouses or civil partners then this issue doesn't arise. However if this is not the case then Revenue will award whichever is the more beneficial treatment.