Dáil Éireann Debate, Wednesday - 15 January 2014
122. Deputy Róisín Shortall asked the Minister for Finance the process by which the single person child carer tax credit is relinquished by a primary carer; if the credit will automatically transfer to a qualifying secondary carer in cases where the primary carer is not availing of it; and if he will make a statement on the matter. [1077/14]
View answerAs you are aware the One-Parent Family Tax Credit (OPFTC) has been replaced with a new Single Person Child Carer Tax Credit from 1 January 2014. The restructured credit is of the same value i.e. €1,650 per annum as the OPFTC and also carries the same entitlement to the additional €4,000 extended standard rate band, which increases it to €36,800 per annum, before liability to the higher rate of income tax arises. However, the credit will be more targeted, in that it will in the first instance, only be available to the principal carer of the child.
The person who receives the child benefit payment is being used as the initial indicator by the Revenue Commissioners to identify the individuals who are most likely to qualify for the new credit. However, eligibility for the credit will in the first place be determined by who cares for the child for most of the year. Agreement as to who will be the principal carer of a child is a matter for parents or guardians.
Notwithstanding the above, as a result of an Amendment which I brought forward at the Committee Stage of the Finance Bill, a primary carer may relinquish the credit such that it can be claimed by a non-primary carer. However, it is not possible for more than one carer to have access to the new credit at any one time. Decisions on whether to claim or relinquish the credit can be taken by carers on an annual basis. The credit cannot be transferred automatically.
Details on the operation of the new credit, including the necessary forms to make a claim and a series of frequently asked questions are available on the Revenue Commissioners website at;
http://www.revenue.ie/en/tax/it/credits/single-person-child-carer-credit.html.
