Dáil Éireann Debate, Wednesday - 5 February 2025
291. Deputy Pearse Doherty asked the Minister for Finance if consideration has been given to extending the period that widows and widowers continue to benefit from being jointly assessed for tax purposes; and if he will make a statement on the matter. [3072/25]
Amharc ar fhreagraI am advised by Revenue that the current position is that where a couple are jointly assessed and one spouse or civil partner dies during a tax year, the following treatment applies:
• In the year of bereavement, the widowed spouse or civil partner is entitled to the same personal tax credits as a married couple, if surviving spouse or civil partner is the assessable spouse or nominated partner.
• If the surviving spouse or civil partner is not the assessable spouse or nominated civil partner, they will receive the increased personal tax credit available to a widowed person or surviving civil partner in the year of bereavement and be assessed on their income from the date of bereavement of the spouse or civil partner until the end of the year.
The Taxes Consolidation Act 1997 (TCA) also provides for the number of credits that are available to bereaved spouses and civil partners:
• Section 461A TCA provides for an additional tax credit for a widowed person or surviving civil partner without dependent children, which may be claimed in the year of assessment following the year of bereavement. The value of this credit is €540 and the widowed person or surviving civil partner is entitled to same in addition to the basic personal tax credit.
• Section 463 TCA provides for the widowed parent tax credit. This tax credit is available in the five years following the year of bereavement for widowed parents and surviving civil partners with dependent children. The credit is tapered over the five years following the year in which the person is bereaved, as follows:
• €3,600 in the first year after bereavement, • €3,150 in the second year after bereavement, • €2,700 in the third year after bereavement, • €2,250 in the fourth year after bereavement and • €1,800 in the fifth year after bereavement.
In order to qualify for the widowed parent tax credit, the widowed person must not have remarried by the start of the relevant tax year and must have a qualifying child residing with him or her for all or part of the year. The credit may only be claimed once, regardless of the number of qualifying children the bereaved person has.
• Section 462B TCA provides for the single person child carer credit (“SPCCC”), which may be available in the years following the year of bereavement where all of the conditions of the provision are met. The SPCCC amounts to €1,900 for the 2025 year of assessment.
Widowed parents who are in receipt of the SPCCC will also be entitled to an increased standard rate band of €4,000 in addition to the single person’s tax band.
Further detailed guidance on the tax treatment of bereaved spouses and civil partners can be found on Revenue Website at: www.revenue.ie/en/life-events-and-personal-circumstances/death-and-bereavement/widowed-person-or-surviving-civil-partner/how-taxed-after-bereavement.aspx
In relation to the Deputy's specific question, I do not currently have any plans to extend the period that widows and widowers continue to benefit from being jointly assessed for tax purposes.
