Tag Archive for: tax relief

Home Carer Tax Credit

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Budget 2019 increased the Home Carer Tax Credit from €1,200 to €1,500 per annum. This tax credit is available to married couples or registered civil partners, where one spouse stays at home to care for a “dependant”.

A dependant can be:
  • a child for whom child benefit is payable;
  • a person aged 65 years or over; or
  • an incapacitated individual.

It does not include a spouse or partner. Often there may be one or more dependants being cared for by the carer spouse. This does not increase the tax credit available.

The Home Carer Tax Credit is often unclaimed as there is a misconception that you must be caring for a sick relative. This is not the case.

Conditions to qualify:
  • You must be jointly assessed for income tax.
  • The dependant person must normally reside with the carer for the tax year. However, if the dependant person is a relative, they can live next door, on the same property or within 2kms of the carer. A relative includes a relative by marriage or a person for whom the claimant is a legal guardian, but not a spouse or civil partner. However, there must be a direct communication link between the two residences such as a telephone or alarm system.
  • The carer spouse must have income of €7,200 per annum or less (excluding any carers benefit or payments received from the Department of Social Protection). If you earn more than €7,200 but less than €10,200 per annum, you may claim a reduced credit:

For example, if the carer spouse earns €8,200 per annum, the maximum tax credit that can be claimed is reduced by the additional earnings as follows €8,200-€7,200=€1,000/2 = €500. The tax credit is reduced by €500 giving a maximum credit of €1,000 available.

If the carer spouse earns €10,200 or above, no Home Carer Tax Credit is available.

This tax credit cannot be claimed alongside the increased standard rate bands for married couples/civil partners. Revenue will grant you the more beneficial option.

Remember; if you qualified for the Home Carer Tax Credit in any of the past 4 tax years (2018, 2017, 2016, and 2015), you can still make a claim to Revenue for it.

If you require any assistance with the home carer tax credit, please contact us.

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Tax Relief for Assistance Dogs

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Tax relief at 20% has now been made available by the Revenue Commissioners in respect of Assistance Dogs which are supplied and trained by an organisation accredited by Assistance Dogs Europe (ADEu). Assistance Dogs Europe (ADEu) are the European chapter of Assistance Dogs International (ADI), a worldwide coalition of non-profit programmes that train and place Assistance Dogs. The tax relief may be claimed in the following two situations:

Blind Person’s Guide Dog

Where a blind person maintains a trained guide dog, supplied by an organisation accredited by the Irish Guide Dog Association, an agreed sum of €825 may be claimed as a health expense by that person (i.e. total tax credit of €165).

For an individual to be eligible to claim this relief they must be entitled to the Blind Person’s Tax Credit and provide written confirmation from the Irish Guide Dogs Association that he/she is the registered owner of a trained dog.

A letter from the organisation which supplied the dogs confirming that the claimant is the registered owner of a guide dog should be submitted with the first claim and the relief will be granted for each year thereafter during which the person maintains the dog.

Assistance Dogs for Disabled Individuals including Children with Autism

If a person maintains a trained Assistance Dog, a sum of €825 may be claimed as a health expense by that person (i.e. total tax credit of €165).

To qualify for this relief an individual must prove that he/ she maintains a trained dog which has been supplied by an organisation accredited by the Assistance Dogs Europe. A statement from the organisation which supplied the dog will be sufficient for the first claim and the relief may be granted each year thereafter during which the individual maintains the dog.

Assistance dogs are trained to meet specific needs of their owner which can include the following:

  • Help their owner stand and walk by providing a stable base and forward motion
  • Provide warning of an approaching seizure or a fall in blood sugar levels, to allow the owner to take preventive action
  • Alert a deaf owner to a variety of sounds
  • Help a person dress/undress
  • Bark to raise the alarm in an emergency e.g. in the case of a fall/seizure
  • Retrieve items such as telephone/keys/a bag
  • Help the person/child to get out and about more easily and have a calming effect, especially for children
  • Detect danger or certain medical symptoms that the person may develop and give warning

For more information on the new tax relief available for Assistance Dogs, please contact Siobhán O’Hea, Partner in our Tax Services.

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