One parent working tax credit

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Fire away

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Hi tax people,

My wife is due to go back to work soon after our 2nd child. We are waying up child care costs v her staying at home full time for a few years. Can we claim additional credit for this? I earn 3,400 pm and all our bills come to 1,800 pm. My wife earns 2,400 pm and child care costs would be 800-1000 for 2 kids so we would be down 1,400 per month. We would be left with about 900e to live on each with 2 kids. Possible?
 
We are expecting number 2 soon so in a similar boat.

If your wife doesn't go back to work she can transfer her tax credit of €1,650 and your lower band tax rate increases by €9,000 (€44,300- €35,300) this is a net gain of €1,800. You can also claim a carers allowance of €1,500 for your wife. These all add up to €4,950 p/a or €412.50 p/m. You will also be getting the children's allowance of €140*2.

So your monthly income will be roughly €4,092.50. If your job is stable, you are happy that this is enough to live comfortably on and your wife is happy to be a stay at home mother then it looks perfectly possible to me.
 
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Hi David,

How do you apply for the carer allowance? Also are your figures above correct - add 1,800 +1500 = 3,300 and not 4950
 
Tosh plus 1650 your wife’s half of married credit she won’t be using. It’s home carers tax credit. Go to revenue.ie and sign up for my account you can claim it there.
 
If spouses income from maternity benefit is below 7200 (fig might have changed) yes you can.

However in figures given above and may apply to you you can’t claim both home carers credit and increased rate tax band, it’s one or other.
 
Thanks for all the helps guys. Last question can you claim the carers allowance while on unpaid maternity leave?
 
Hi, I don't think you can get carer allowance for staying at home mind your own children. This is an allowance for people who would care for people who would need an government service if the didn't have that carer.

Edit : sorry I see you mean home carer tax credit.
 
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The HC tax credit only applies to married couples, I think.

The carer does not have to care for their own child, just care for somebody.
 
Protocol said:
The HC tax credit only applies to married couples, I think.

The carer does not have to care for their own child, just care for somebody.
Click to expand...

Does there have to be some special circumstances e.g. a child with a disability or such? Or basically any stay at home parent with kids?
 
Qualifying for Home Carer Tax Credit
To claim the Home Carer Tax Credit you must care for a dependent person. You must also be married or in a civil partnership and be jointly assessed for Income Tax (IT).

The dependent person you care for must be either:

Does the dependent person have to live in your home?
If you care for a dependent person who is a relative of yours, or of your spouse or civil partner, they need not live in your home. They must however live either:

  • next door in a neighbouring home
  • or
  • on the same property
  • or
  • within 2 kilometres of your home.
There must be a direct communication link (for example, a telephone or alarm system) between your home and the home of the dependent person. A relative includes a person for whom you act as a legal guardian.

If you care for a person who is not a relative, and not a relative of your spouse or civil partner, then they do have to live in your home.
 
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