Wednesday, 31 March 2021
Department of Finance
I am advised by Revenue that there are a number of tax reliefs available to individuals who are carers. Details of the main reliefs, including the related tax credits, are as follows:
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 of €10,400. Further details on this credit can be found on Revenue’s website at the following link: .
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 about this credit is available on Revenue’s website, available at this link: .
The Dependent Relative Tax Credit is a tax credit of €245, 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 on Revenue’s website by following this link: .
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 single parent) with a dependent child who is under 18 or, if over 18, is an incapacitated child who satisfy the Incapacitated Child Tax Credit criteria. Detailed guidance on this credit is available here: .
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 this link: .
And finally, an exemption from income tax applies in respect of the Carer’s Support Grant and the Domiciliary Care Allowance, which are payments made by the Department of Social Protection.