Home carer's tax credit.

[Nomansland]

Hi,
for the year 2011 I filed my tax return via my accountant. I am a PAYE worker and my wife did not have any income for the year.

Lokking at the balancing statement from the Revenue it appears that the 810 euro tax credit for the Home carers allowance was applied. My wife stays at home and minds the kids. However, it appears that we also benifited from the increased standard rate band for jointly assesed couples (41800 euro). In other words everything up to 41800 was taxed at 20% while at the same time the home carers credit of 810 was also applied.

From the revenue website, it appears that you either avail of the increased standard rate band, or avail of the 810 Home carer's credit (whichever is more benifical).

Is this correct, and if so have revenue over re-funded me.

Thx in advance.

 

[Clarkey]

Hi,
for the year 2011 I filed my tax return via my accountant. I am a PAYE worker and my wife did not have any income for the year.

Lokking at the balancing statement from the Revenue it appears that the 810 euro tax credit for the Home carers allowance was applied. My wife stays at home and minds the kids. However, it appears that we also benifited from the increased standard rate band for jointly assesed couples (41800 euro). In other words everything up to 41800 was taxed at 20% while at the same time the home carers credit of 810 was also applied.

From the revenue website, it appears that you either avail of the increased standard rate band, or avail of the 810 Home carer's credit (whichever is more benifical).

Is this correct, and if so have revenue over re-funded me.

Thx in advance.

The increased standard rate band referred to is any amount over €41,800 earned in your wife's name. If she had any income it would be taxed at 41%. The balancing statement is correct