Richard Bruton (Dublin North Central, Fine Gael)
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Question 152: To ask the Minister for Finance the value of earnings from renting rooms in a person's home and for caring for children in a person's home which can be exempt from income tax in 2007; and if those sums are exempt from social insurance and health levy. [39864/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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As regards the rent-a-room scheme, the position is that where an individual receives less than €7,620 in income during a tax year from renting out a room or rooms in his or her own home, that income is exempt from income tax and it is not taken into account for the purposes of social insurance and the health levy. However, if the income received exceeds €7,620, the amount received is taken into account for the purposes of income tax, social insurance and the health levy in the normal way.

In determining whether the rent received exceeds €7,620 no account can be taken of deductions or expenses of any kind. However, where this amount is exceeded the person who rents out the room can deduct all allowable deductions and expenses for the purposes of determining the taxable rental income.

As regards the childminders' scheme, the position is that where an individual receives less than €10,000 during a tax year from providing child care services in his or her own home, the amount received is exempt for income tax and health levy purposes. However, there is a liability to social insurance and the minimum annual contribution rate of €253 applies. Where the amount received exceeds €10,000, the amount received is taken into account for the purposes of income tax, social insurance and the health levy in the normal way.

In determining whether the amount received exceeds €10,000 no account can be taken of deductions or expenses of any kind. However, where this amount is exceeded the child care services provider can deduct all allowable deductions and expenses for the purposes of determining the taxable income.