As promised in the 2018 Budget, the Home Carer Tax Credit has been increased to €1,200 for the tax years 2018 onward. This credit is available to married couples or civil partners where one spouse / civil partner cares for one or more dependents. You can only claim one credit, regardless of the number of people you care for and you cannot claim this credit if the dependent person is your spouse or civil partner.
There are a number of conditions which must be met in order to qualify for the credit including the following:
- The home carer must care for one or more dependent persons.
- The married couple / civil partners must be jointly assessed to tax.
- The home carer’s income must not exceed €7,200 to qualify for the full credit. A reduced credit may be available if the carer’s income is between €7,200 and €9,600.
- The dependent person must live with the married couple / civil partners.
- The couple cannot claim the increased Standard Rate Band for Dual Income couples in the year they wish to claim the Home Carer Tax Credit.
A dependent person is a child for whom Department of Employment Affairs and Social Protection Child Benefit is payable, a person aged 65 years or over or a person who is permanently incapacitated by reason of mental or physical infirmity.
For additional information, please contact a member of the tax team.