Dáil Éireann Debate, Tuesday - 18 February 2014
193. Deputy Joanna Tuffy asked the Minister for Finance if parents who have joint custody of their children can share the single person child carer tax credit; and if he will make a statement on the matter. [7875/14]
View answerThe new Single Person Child Carer Credit is of the same value as the one-parent family tax credit which it has replaced. However, the credit is more targeted in that it is, in the first instance, only available to the principal carer of the child. A system that allows multiple claims in respect of the same child or children is unsustainable. The change follows a recommendation from the Commission on Taxation that the credit should be retained but that it should be allocated to the principal carer only.
The Single Person Child Carer Credit is initially granted to the principal carer. This is usually the parent who receives the child benefit in respect of the child from the Department of Social Protection. Child benefit is only paid to one parent, even in cases where child care responsibilities are equally shared. Therefore, the extension of such practice to this tax credit is logical.
Notwithstanding the above, a principal carer can relinquish the new credit and associated extended standard rate band, such that it can be claimed by a secondary claimant provided certain conditions are met.
It would not be feasible to split the credit, within a tax year, between carers in a way that would take account of the many different caring scenarios in existence. There is no one size fits all solution that could be employed and the tax code cannot be constructed in such a way as to cater for every possible scenario. However, given the provisions that allow the credit to be relinquished, it is possible for a separated couple to agree that each party can claim the credit in alternate years provided the qualifying conditions are met.
