Single-Person Child Carer Tax Credit

The one-parent family tax credit has been replaced with a new single-person child carer tax credit with effect from 1 January 2014. The credit is the same value as the previous one-parent family tax credit, i.e. €1,650 per year.

This credit will now be available only to one individual, who is the child’s principal carer. This is in contrast to the one-parent family tax credit, which was potentially claimable by both parents or legal guardians, provided that the child resided with each claimant for at least part of the year.

The primary claimant can relinquish his or her claim to this tax credit, making it possible for the other carer of the child to avail of the credit, if certain conditions are met. It is the responsibility of the parents or legal guardians to agree who will claim the tax credit and to advise Revenue accordingly. It is not possible to apportion the relief between the two parties.

If you need further information on the above please contact us today. And remember if you are a single parent and are not cohabiting you may be due a tax refund for prior years. Simply download our application form today.