John V. Farrelly
Ceist:220 Mr. Farrelly asked the Minister for Finance if a person (details supplied) in County Meath has been granted the ?2,600 tax credit; and if he will make a statement on the matter. [7836/02]
Written Answers. - Tax Allowances.
I am informed by the Revenue Commissioners that, in addition to a personal tax credit of €1,520 and a one parent family credit of €1,520, the taxpayer is entitled to a widowed parent tax credit of €2,100 in the current tax year. A revised certificate of tax credits for 2002, to include the widowed parent tax credit, is in the process of being issued.
A person who is a widowed parent can claim a widowed parent tax credit in each of the five years following the tax year in which the taxpayer's spouse dies. As the taxpayer's husband died in January 2001, namely, during the 2000/2001 tax year, she is entitled to a widowed parent tax credit of £2,000 (€2,540) for the 2001 tax year. If the taxpayer's husband had died during the 2001 tax "year", namely, the period from 6 April to 31 December 2001, she would be entitled to a bereaved parent tax credit of €2,600 in 2002. The widowed parent tax credit was not included in the taxpayer's tax credits for 2001 and she may have overpaid tax as a consequence. However, there may be some additional tax due on her widow's pension, which is liable to income tax.
In order to calculate the amount to be refunded to the taxpayer, the inspector of taxes needs to have her P60 for 2001. The taxpayer is advised to send her P60, available from her employer, to the inspector as soon as possible. This will enable the inspector to review the taxpayer's income tax liability for 2001 and refund any tax she may have overpaid in that year.
For future years, the taxpayer will be entitled to a widowed parent tax credit of €1,600 in 2003, €1,100 in 2004 and €600 in 2005.