Michael McGrath (Cork South Central, Fianna Fail)
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This is enshrined in the legislation, but this tax credit does not work in the same way as other tax credits. To be fair, the Revenue website is clear that a couple cannot both use the standard rate cut-off point, that is where one spouse uses a portion of the other spouse's share of the band. That also applies to the home carer tax credit and that probably partly explains why we think more people might be entitled to it than is the case. Once an individual's income, let us say the primary earner, exceeds €37,000, the benefit of the home carer tax credit begins to slide. Once income increases to €44,600, there is no benefit from the home care tax credit. It does not work in the same way as most tax credits, such as the case of a jointly-assessed couple where tax liability is calculated and then reduced by the number of applicable tax credits. The home care tax credit does not operate that way and that is not widely understood.