I am advised by Revenue that the home carer tax credit may be claimed by jointly assessed married persons or civil partners, where one spouse or civil partner (the ‘home carer’) cares for one or more dependent persons.
A dependent person includes an individual who, at any time in the year of assessment, is:
- a child in respect of whom the home carer, or his or her spouse or civil partner, is in receipt of child benefit;
- aged 65 years or over; or
- permanently incapacitated by reason of mental or physical infirmity.
The dependent person must normally reside with or in close proximity to the married couple or civil partners for the relevant year of assessment.
To obtain the full tax credit (€1,600 for the 2021 year of assessment), the home carer’s income for the year must not exceed €7,200. Where the home carer’s income is over €7,200, the tax credit available is reduced by one half of the excess amount earned over this limit. The home carer tax credit will therefore not be available for the 2021 year of assessment where the home carer’s income exceeds €10,400.
A couple or civil partners cannot claim both the increased standard rate band for dual income couples and the home carer tax credit in the same year of assessment and in practice, Revenue will grant whichever relief will provide the most beneficial treatment to the couple. Where the home carer tax credit is no longer available, the increased standard rate band may therefore be applied.
Based on the details supplied, home carer relief is not available to the person concerned. However, I am also advised by Revenue that tax relief may be available in respect of qualifying tuition fees paid by an individual. This includes tuition fees paid for an approved third level education course, including a postgraduate course, at an approved college.
Relief is not available in respect of the first €3,000 paid per year of assessment for a full-time course, or the first €1,500 paid per year of assessment for a part-time course. In addition, relief is not available in respect of administration fees, examination fees, capitation fees or any portion of tuition fees that are, or will be, met directly or indirectly by grant, scholarship, employer contribution or other means.
The Revenue office which deals with the individual’s tax affairs will be able to assist in determining the full range of credits and reliefs which he or she may be entitled to claim, based on their personal circumstances. Contact details for various Revenue offices can be found at the link on the Revenue website www.revenue.ie/en/contact-us/index.aspx.
Detailed guidance in relation to the home carer tax credit and relief for tuition fees can be found on the Revenue website, which can be located at the links detailed below:
- home carer tax credit:
- relief for tuition fees