Dáil Éireann Debate, Tuesday - 22 November 2016
187. Deputy Éamon Ó Cuív asked the Minister for Finance the cost of the home carer's tax allowance for the past year for which there are statistics; the maximum allowance per taxpayer; the total amount a full-time carer could earn and retain the full allowance; the number of persons in receipt of the allowance broken down by county or tax district; and if he will make a statement on the matter. [36281/16]
View answerI am advised by Revenue that in 2014, the most recent year for which figures are available, the maximum amount of home carer tax credit available was €810 and the overall cost to the Exchequer for this credit was an estimated €60.9 million, in respect of 80,900 recipients. In 2016 the home carer tax credit was increased to €1,000 and I announced in the recent Budget that the credit will increase to €1,100 with effect from January 2017.
The Home Carer credit may still be claimed where the home carer has a certain amount of income in his or her own right. The full tax credit is due if the Home Carer's income is less than a threshold amount. This threshold was increased to €7,200 with effect from 2016, from a lower limit of €5,080 which applied in prior years including 2014. Where the home carer's income exceeds the threshold, the credit is withdrawn on a tapered basis, with €1 of the credit being withdrawn for each additional €2 earned by the home carer.
Therefore, in 2014 and 2015, a portion of the home-carer credit was due where the home carer's income was between €5,080 and €6,700. For example: In 2014 if the home carer had income of €6,000, the home carer tax credit due would have been €350. This is calculated by reducing the full credit of €810 by one-half of the income earned in excess of the €5,080 threshold: i.e. €6,000 - €5,080 = €900 / 2 = €460. €810 - €460 = €350 credit due.
For 2016, as a result of the increased credit of €1,000 and the higher income threshold of €7,200, a portion of the home-carer credit is due where the home carer's income is between €7,200 and €9,200. In 2017 a portion of the home-carer credit of €1,100 will be due where the home carer's income is between €7,200 and €9,400.
The following table contains a breakdown for the figures for 2014. The numbers provided represent income earners who were in a position to absorb at least some of the home carer tax credit and thereby give rise to an Exchequer cost. They do not include the number of potential claimants whose entitlement to other tax credits was sufficient to reduce their tax liability to nil without reference to the home carer tax credit. The figures are rounded and adjusted to take account of late filers. A married couple or civil partners who have elected or have been deemed to have elected for joint assessment are counted as one tax unit.
|
Bailiwick |
Home Carers Credit Recipients |
|
Carlow |
800 |
|
Cavan |
1,100 |
|
Clare |
1,800 |
|
Donegal |
1,500 |
|
Galway |
4,500 |
|
Kerry |
3,000 |
|
Kildare |
3,700 |
|
Kilkenny |
1,500 |
|
Laois |
600 |
|
Leitrim |
700 |
|
Limerick |
3,000 |
|
Longford |
500 |
|
Louth |
1,500 |
|
Mayo |
1,500 |
|
Meath |
2,800 |
|
Monaghan |
700 |
|
Offaly |
1,400 |
|
Roscommon |
600 |
|
Sligo |
700 |
|
Tipperary |
1,800 |
|
Waterford |
1,500 |
|
Westmeath |
2,400 |
|
Wexford |
1,700 |
|
Wicklow |
1,900 |
|
Dublin City |
19,000 |
|
Dublin County |
11,500 |
|
Cork City |
2,900 |
|
Cork County |
5,300 |
|
Other/Foreign |
1,000 |
