Dáil Éireann Debate, Wednesday - 15 January 2014
165. Deputy Willie Penrose asked the Minister for Finance in the context of the recent taxation changes to the one-parent family credit under the tax code, the criteria by which same can be claimed; if there is provision for same to be allocated to two people who are providing the necessary care for a child; and if he will make a statement on the matter. [1803/14]
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 credit is not apportioned where more than one person is involved in the care of the qualifying child. Where, for whatever reason, a primary claimant does not wish to, or cannot avail of the credit, (for example, where the primary claimant has no tax liability), and chooses to surrender it, a secondary claimant may make a claim for the credit, provided that the qualifying child resides with him or her for not less than 100 days in the tax year. A secondary claimant cannot make a claim unless a primary claimant is entitled to the credit in the first instance and surrenders it.
A claim cannot automatically transfer to a secondary claimant without the primary claimant first surrendering it and the secondary claimant making a claim for it. However, once the secondary claimant has been granted the credit, he or she will retain it for that tax year and subsequent tax years unless the credit is reclaimed again by the primary claimant, or the secondary claimant ceases to meet the qualifying conditions. The secondary claimant cannot be married, in a civil partnership or cohabiting.
If the primary claimant wishes to subsequently reinstate his or her claim to the Single Person Child Carer Credit he or she must make a claim for the credit to the Revenue office. In such circumstances the credit will only be reinstated from the start of the next tax year. Further details in relation to the Single Person Child Carer Credit and the relevant forms, including those for relinquishment by a primary claimant and claim by a secondary claimant, may be found on the Revenue website at http://www.revenue.ie/en/tax/it/credits/single-person-child-carer-credit.html.
