How does having children affect your income tax liability?

Discussion in 'Tax' started by Chris2014, Dec 23, 2016.

  1. Chris2014

    Chris2014 Frequent Poster


    Just with regard to the Deloitte Tax Calculator.

    There's a question that asks if i have children at school and am i the principal carer. When i say yes it decreases my tax liability.

    Is this aimed at single parents? Or is their some kind of tax credit for parents with children in school? Does principal carer mean single parent?

  2. Joe_90

    Joe_90 Frequent Poster

  3. Brendan Burgess

    Brendan Burgess Founder


    Home Carer Tax Credit
    A tax credit at the standard rate of tax (20%) is available for Married Couples or Civil Partners where:

    • One Spouse or Civil Partner (the ‘home carer’) works in the home, caring for one or more dependent persons (who usually live with the couple for the year).
    • A dependent person being:
      • a child for whom they receive child benefit from the Department of Social Protection,
      • a person aged 65 or over, or
      • a person who is permanently incapacitated by reason of mental or physical infirmity.
    • The home carer's income is not in excess of €7,200 (€5,080 in 2015). A reduced tax credit applies where the income is between €5,080 - €6,700 (in 2015) or between €7,200 - €9,200 (in 2016).
    • The tax credit is not available to Married Couples or Civil Partners who:
      • are taxed as single persons, or
      • have combined incomes over €42,800 and claim the increased standard rate tax band for dual income couples.
    For more information and details on how to claim this tax credit refer to Leaflet IT 66 - Home Carer's Tax Credit.