Is Disability allowance taxable

is disability allowance taxable, at the moment I get E196 + 134 for my spouse, plus 2 kids, I will lose 1 after the Leaving Cert. This year
Revenue have issued me with tax credits for 2010. My wife does not work, she gave up, to help me, with driving, hospitals, even dressing, and food preparation.

Do not get me wrong, I am happy with my life, and tax is to be paid so be it. \but it would be better that it be sorted at sourse

DA is a means tested payment and is not taxable. Illness Benefit (excluding any increases for child dependants) is considered as income for tax purposes. However, the first 6 weeks of Illness Benefit in each tax year are not taxable.