Incapacitated child tax credit

[Pinoy adventure]

Hi all

I’m in the process of claiming for the incapacitated child tax credits on my revenue.

However once I uploaded the Documents it asked if my other half gets carers allowance which she does so my tax credits would reduce by €2537.

Assuming the tax credits reduce would my net pay also reduce ?

Incapacitated tax credit is worth €3300 per year.

Any advise
Thanks

 

[Naydyloum]

Yes, a reduction in your tax credits means your net pay also reduces, assuming of course that your earnings are high enough that you are currently using those tax credits. Carer's allowance is taxable income but Revenue don't deduct tax when it is received. Instead they reduce the person's annual tax credits and tax band (or both theirs and their spouse's in the case of jointly assessed couples) so the tax is collected that way. Likewise, an increase in your tax credits, such as from the Incapacitated Child Tax Credit, will cause your net pay to increase. Again, assuming you have the earnings and therefore tax liability to utilise them.

I would suggest that you and your OH check that she is claiming all of her tax credit entitlements. Personal tax credit, employee tax credit, possibly Home Carer's Tax Credit depending on her overall annual earnings/income. These could help offset her tax liability on the Carer's Allowance.

 

[dubdub123]

Just an update in case others are in similar situation. I moved job few months ago and paid monthly and was on week 1. I didnt request a change however looks like its now changed to cumulative, and i received tax back in latest salary. Just to let others know.