Q.  Who is entitled to the Home Carer's Tax Credit and how much is it worth?

18.03.08

A tax credit reduces your tax total by the amount of the credit. The Home Carer's Tax Credit applies to married couples (who are jointly assessed for tax) if one spouse works in the home caring for a dependent person who is a child for whom Child Benefit is payable, or is aged 65 or over, or is a person, other than your spouse, who has a disability and requires care.
He/she must normally live with you in the tax year for which you claim the credit. But a dependent person who is a relative may be cared for outside your home if he/she lives on the same property, lives next door to you or lives within two kilometres.

To obtain the full credit, the home carer's income must not exceed €5,080.
If the income is between €5,080 and €6,620, a reduced credit is paid. If both spouses of a married couple have income, there is an increase available in the amount that they can earn before paying the higher rate of tax.
The Home Carer's Tax Credit cannot be claimed in addition to this increased standard rate tax band. You can choose whichever is more beneficial in your circumstances. In general, if the combined (2008) taxable income of both spouses is less than €44,400, the tax credit for home carers will be more beneficial. If it is over that amount, the best option will depend on the amount of income of the home carer. Use Revenue form IT 66 to claim the credit.

Citizens Information: Buncrana 074 9363496; Carndonagh 074 9373741

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