Claiming Dependent Relative Tax Credit 2021

Tax Credits for Dependent Relatives

Claiming Dependent Relative Tax Credit 2021

Are you providing some care or financial help to a relative at your own expense? You may qualify to claim the Dependent Relative Tax Credit.

Who can claim the Dependent Relative Tax Credit?

  • If you provide some care or financial help to a relative at your own expense, you may be entitled to the Dependent Relative Tax Credit.

 

  • It is not necessary that the care/aid you provide be full-time.

 

  • The relative doesn’t need to live with you, in fact the relative doesn’t have to live in Ireland to qualify for this credit.

 

  • This Dependent Relative Tax Credit can be claimed by employed and self-employed persons.

 

  • If you qualify, you may claim for the last 4 years (2016-19).

 

Which relatives qualify for the Dependent Relative Tax Credit?

The relative you claim for must be:

  • Your relative (or your partners relative) – who is unable to maintain themselves due to incapacity by old age or illness

or

  • Your widowed parent (or your partners widowed parent) – regardless of whether they are incapacitated.
    – Widowed parent includes a surviving civil partner

or

  • If you need your child (or your partners child) to live with you, to provide you care due to your old age or illness, you can claim the tax credit yourself.

 

You cannot claim this tax credit if you are already claiming ‘Employing a Carer’ or ‘Incapacitate Child’ tax credits.

 

What is the rate for the Dependent Relative Tax Credit?

  • 2016 – 2020 the Dependent Relative Tax Credit is €70 per annum
  • From 2021 the Dependent Relative Tax Credit is € 245 per annum

 

  • However, to qualify you for this Tax Credit, the relative MUST NOT receive more than €15,060 (€15,740 in 2021) annually. (Old Age Pension Contributory rate approx)

 

  • You can claim for more than one relative – providing the relative doesn’t exceed the income limit of €15,060 (€15,740 in 2021).

 

 

How to claim for 2020 ?

  • Sign into your ‘myAccount’
  • Select ‘Manage Your Tax 2020’  You will automatically get this tax credit in 2021 and in future until you de-select it.
  • Select ‘Claim tax credits’ from the options on the left
    or
    Select ‘Add new credits’ from under ‘Your current tax credits’

    • Select ‘You and your family’
    • Select ‘Dependent Relative Tax Credit’
    • 1 Tax credit selected – Next
    • Select ‘Number of dependents’ from the drop down list
    • Click Add
  • Tick the boxes of all the tax credits you wish to claim > Next
  • Submit

…. Remember if you’ve added this tax credit during the 2020 tax year, you should note that you haven’t actually filed your Tax Return !
…. Filing your Tax Return for 2020 steps will be similar to ‘Reviewing your Tax 2016-2019’ below – but can only happen after 2020 year end. You will be…  ‘Reviewing your Tax 2017-2020’ !

 

How to claim for 2016 – 2019 ?

  • Sign in to your ‘myAccount’, if you don’t have a ‘myAccount’ you can follow Step 1 in our blog ‘How to Claim Tax Back in Ireland‘.
  • Select ‘Review Your Tax 2016-2019’ under the PAYE services section
  • Select ‘Tax Year’ from drop down box. You will need to make a separate claim for each year you wish to claim.

Claiming for 2019

  • Review Type – Statement of Liability
  • Select – Action ‘Submit’ – if you’ve not submitted your Income Tax already
  • or
  • Select – Action ‘Amend’ – if you’ve submitted your Income Tax before

 

Claiming for 2016, 2017, 2018

  • Review Type – Income Tax Return
  • Select – Action ‘Submit’ – if you’ve not submitted your Income Tax already
    or
    Select – Action ‘Amend’ – if you’ve submitted your Income Tax before

 

  • Click OK – for Notice to file an Income Tax Return
  • Click Next – for instructions – what you will need..
  • Pg 2. Personal details – complete and check details > Next
  • Pg 3. PAYE income page – complete and check details > Next
  • Pg 4. Non-PAYE income – complete and check details > Next
  • Pg 5. Tax credits & Reliefs
    • Select ‘You and your family’
    • Select ‘Dependent Relative Tax Credit’
    • Select ‘Number of dependents’ from the drop down list
    • Click Add
  • Tick the boxes of all the tax credits you wish to claim > Next
  • Pg 6. Declaration – tick the declaration box if you agree with the details displayed

 

… your claim is now submitted. Revenue will send the tax refund to the bank account details you provided assuming you don’t owe them any tax

Visit Revenue’s website to read about this Tax Credit and Revenue’s further information guidance notes

 

Geraldine Downey

Geraldine Downey

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