Michael Ring (Mayo, Fine Gael)
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Question 138: To ask the Tánaiste and Minister for Finance if it is possible for a person on maternity benefit to also receive the home carer's tax credit for the period they were off work after giving birth. [15176/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Qualification for the home carer tax credit, which was increased from €770 to €900 in Budget 2008, does not depend on an individual's situation over a specific short-term period but instead depends on whether specific conditions apply in the tax year in which the credit is claimed. The home carer tax credit can be claimed by a married couple who are jointly assessed to income tax and where one spouse is a "home carer" for the relevant tax year. A "home carer" is an individual who is engaged during the tax year in caring for one or more dependent persons. The definition of "dependent person" includes a child for whom social welfare child benefit is payable.

However, a married couple cannot claim both the home carer tax credit and the increased standard rate band for married couples with two incomes in the same tax year. I am informed by the Revenue Commissioners that in practice they will grant the couple whichever tax treatment is more beneficial to them. The home carer can have total income in her or his own right of up to €5,080 without this affecting the married couple's entitlement to claim the home carer tax credit. If the home carer's income is between €5,080 and €6,880, the credit is reduced by one half of the excess over €5,080. If the home carer's income exceeds €6,880, the credit cannot be claimed. For the purpose of this income limit, carer's allowance and maternity benefit paid by the Department of Social and Family Affairs are ignored.