Danny Healy-Rae (Kerry, Independent)
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39. To ask the Minister for Finance if he will increase the tax credits for widows/widowers (details supplied); and if he will make a statement on the matter. [40373/24]

Jack Chambers (Dublin West, Fianna Fail)
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The Irish income tax code contains favourable provisions relating to the tax treatment of widowed persons.

In the year of bereavement, a widowed person is entitled to the same personal tax credits as a married couple, if they were jointly assessed to tax, and the assessable spouse or nominated partner. If they were not the assessable spouse or nominated civil partner they will receive the increased personal tax credit available to a widowed person or surviving civil partner in the year of death, and be assessed on their income from the date of death of the spouse or civil partner until the end of the year.

Following the year of bereavement, widowed persons without dependent children are entitled to the widowed person tax credit of €540 in addition to the standard tax credits for a single person. While, in the years following the year of bereavement, a widowed person with dependent children may be entitled to the single person child carer credit.

The widowed parent tax credit is also available in the five years following the year of bereavement to a widowed person with dependent children. This credit is tapered over the 5 years and amounts to €3,600 in year one, €3,150 in year two, €2,700 in year three, €2,250 in year four, €1,800 in year five and nil thereafter.

As a result of changes I announced as part of Budget 2025, widowed parents who are in receipt of the single person child carer credit will also be entitled to an increased standard rate band of €48,000. This compares favourably with the single person’s tax band which will rise to €44,000.

Also as announced, the personal, employee and earned income credit will be increased by €125 to €2,000, which represents an increase of approximately 6.7 per cent.

Widowed persons will also benefit from the income tax changes made over successive Budgets by this Government. For example, to ease the burden facing average and middle income earners, the entry point to the higher rate of income tax for all earners has increased substantially by €8,700 or c. 25 per cent over the last four budgets in line, with Programme for Government commitments. The main tax credits have also been increased by €350, or c. 21%, over this period.

It should also be noted that widowed persons who are in receipt of the social welfare contributory or non-contributory widow’s pension are not liable to the Universal Social Charge on that payment.