The Home Carer Tax Credit was increased in Budget 2018 to €1200, up from €1100 in 2017 and €1000 in 2016.
The Home Carer Tax Credit may be available to married couples / civil partners, where one spouse cares for one or more dependent persons.
A dependent person is:
- a child for whom Child Benefit is payable;
- a person aged 65 years or older; or
- a person who is permanently incapacitated by reason of mental or physical infirmity.
A dependent person does not include a spouse.
To obtain the full credit, the home carer’s income must not exceed €7200 in the tax year. If the income is above this limit, but below €9600, a reduced credit may be available.
The couple must not claim the increased Standard Rate Band for Dual Income couples in the tax year they wish to claim the credit.
The dependent person must normally reside with the couple for the tax year, unless the dependent person is a relative. A relative may be cared for outside the home if they reside:
- next door in a neighbouring residence;
- on the same property; or
- within 2km of the claimant.
There must be a direct communication link between the two residences – ie telephone, alarm.
Get in touch with us to discuss your tax credits.