I'm hoping that someone who has had to address this issue might be able to provide guidance on how we should proceed. We have a child on the autistic spectrum for whom we have been claiming the Incapacitated Child Tax Credit of €3,300 per annum. The appropriate medical certification was provided when we initially claimed this credit.
According to the Revenue website, "the Incapacitated Child Tax Credit is available to the parent or guardian of a child:
'Maintain' for the purpose of the Incapacitated Child Tax Credit, means an ability to support oneself by earning an income from working."
The table of tax credits on the Revenue website includes a line below the line outlining the amount of the Incapacitated Child Tax Credit stating that for the Incapacitated Child Tax Credit, the income limit of the child is €0. I don't recall seeing this specified in the past and I assume that the Disability Allowance, which our child has been receiving, does not count as income for this purpose.
The issue we now have is that our child has now been offered an opportunity to take up part time employment. They would still qualify for the DA, but at a reduced rate. Does this mean that we should notify Revenue immediately and that we will lose the Incapacitated Child Tax Credit with immediate effect? And what happens if things don't work out in the job and our child is not kept on after an initial trial period? How difficult will it be to get the Incapacitated Child Tax Credit reinstated and will this require further medical certification?
I appreciate that there are a lot of "what ifs" in the above, but perhaps someone who has been through this process might be able to throw some light on what is involved. If it is going to be difficult to reinstate the credit, it makes taking up employment a high risk strategy from a financial perspective. I know that there are other factors at play including our child's self esteem and their possible ability to become self sufficient down the line, but I don't think they will ever be able to be "fully support oneself by earning an income from working."
I would be most grateful for any advice, particularly from anyone with direct experience of dealing with this issue, either as someone directly involved or as someone providing advice to parents who found themselves in that situation.
According to the Revenue website, "the Incapacitated Child Tax Credit is available to the parent or guardian of a child:
- who is permanently incapacitated, either physically or mentally
- and
- where there is a reasonable expectation that the child will be unable to maintain themselves when over 18.
'Maintain' for the purpose of the Incapacitated Child Tax Credit, means an ability to support oneself by earning an income from working."
The table of tax credits on the Revenue website includes a line below the line outlining the amount of the Incapacitated Child Tax Credit stating that for the Incapacitated Child Tax Credit, the income limit of the child is €0. I don't recall seeing this specified in the past and I assume that the Disability Allowance, which our child has been receiving, does not count as income for this purpose.
The issue we now have is that our child has now been offered an opportunity to take up part time employment. They would still qualify for the DA, but at a reduced rate. Does this mean that we should notify Revenue immediately and that we will lose the Incapacitated Child Tax Credit with immediate effect? And what happens if things don't work out in the job and our child is not kept on after an initial trial period? How difficult will it be to get the Incapacitated Child Tax Credit reinstated and will this require further medical certification?
I appreciate that there are a lot of "what ifs" in the above, but perhaps someone who has been through this process might be able to throw some light on what is involved. If it is going to be difficult to reinstate the credit, it makes taking up employment a high risk strategy from a financial perspective. I know that there are other factors at play including our child's self esteem and their possible ability to become self sufficient down the line, but I don't think they will ever be able to be "fully support oneself by earning an income from working."
I would be most grateful for any advice, particularly from anyone with direct experience of dealing with this issue, either as someone directly involved or as someone providing advice to parents who found themselves in that situation.