Wednesday, 20 May 2020
Department of Finance
109. To ask the Minister for Finance if the tax credit given to the carers of incapacitated persons will be increased in view of the fact that carers are providing full-time care and attention and will have no entitlement to a contributory State pension in due course; and if he will make a statement on the matter. [6434/20]
There are a number of tax credits and reliefs available to individuals who are carers of incapacitated persons.
The Incapacitated Child Tax Credit is a tax credit of €3,300, which can be claimed by a person in respect of a child who is permanently incapacitated either physically or mentally from maintaining himself or herself and had become so before reaching 21 years of age or finishing full-time education. More information is available on Revenue’s website: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-05.pdf.
The Home Carer Tax Credit is available to married couples or civil partners that are jointly assessed, where one spouse or civil partner stays at home to take care of a dependent person. Its current value is €1,600. The carer spouse or civil partner may earn up to €7,200 per year without affecting the amount of the credit awarded. Where this income exceeds €7,200, the amount of credit available is reduced by one half of the excess over €7,200, subject to a maximum income limit in 2020 of €10,400. The Home Carer Tax Credit has been increased in each of the last five Budgets. More information is available on Revenue’s website: .
The Dependent Relative Tax Credit is a tax credit of €70, which can be claimed by an individual who maintains, at his or her own expense, a relative, or a child, who is unable to maintain himself or herself. This credit cannot be claimed in conjunction with the Incapacitated Child Tax Credit and is subject to a cap on the income of the dependent relative. Further information on this credit can be found at the link: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-27.pdf.
The Single Person Child Carer Tax Credit is a tax credit of €1,650, which is available to a single parent (whether widowed, separated, deserted or a single parent) with a dependent child who is under 18 or, if over 18, is an incapacitated child who satisfies the Incapacitated Child Tax Credit criteria. Detailed guidance on this credit is available at the link: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-41.pdf.
In addition, income tax relief is available for certain health expenses, including visits to the doctor, medicines, nursing care in the patient’s home (in certain circumstances), nursing home fees, expenditure in respect of children with life threatening illnesses, kidney patients’ expenses, mileage for individuals who need to travel for treatment and certain medical appliances. More information on tax relief for health expenses is available at the link: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-12.pdf.
I have no plans to make any changes to the abovementioned tax credits at this time.
The question of entitlement to the State Contributory Pension is a matter for the Minister for Employment Affairs and Social Protection.