Everything You Need to Know About the Dependent Relative Tax Credit in Ireland
You may qualify for the Dependent Relative Tax Credit if you take care of a dependent relative. However, the majority of people are not aware that they are eligible to claim this credit. The value of the credit was increased in January 2021 from €70 to €245.
In this complete guide, we will discuss everything you need to know about the Dependent Relative Tax Credit.
Who can qualify for the Dependent Relative Tax Credit?
You could claim this credit if you take care of a relative at your own expense. You are able to claim for your own relative or a relative of your civil partner or a spouse.
Conditions to qualify for the Dependent Relative Tax Credit
The relative you claim for must be your own or your civil partner’s or spouse’s:
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Relative who is unable to take care of themselves due to old age or ill-health
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widowed mother or father, incapacitated or not (regardless of if the surviving parent was married or in a civil partnership)
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child who lives with you and on whose services you depend as a result of your age or ill health
What does the credit offer?
The tax credit is €245, which means that your tax liability is reduced by €245. For instance, if you have to pay taxes of €1,000 and you claimed the tax credit, you would need to pay €755.
If you realise you are eligible for the credit, after you have paid your tax, you can claim the tax paid back. You can also claim back this credit for the previous four tax years (Remember this tax credit only increased to €245 in 2021, before this the credit was €70.).
You will not receive the tax credit if your dependent relative's income exceeds €17,404 with effect from 1 January 2024 (€16,780 for 2023).
All of your dependent relative's income is included for the income limit purposes. This includes their pensions, deposit interest and social welfare payments.
If more than one person takes care of the dependent relative, the credit is divided between them.
The average Irish tax refund is €1,880
How is caring defined?
Caring is providing full-time physical aid, but not solely. It also covers providing financial aid or part-time assistance. What’s more, the relative does not need to live with you. If you are paying for a dependent’s relative expenses like doctor bills, medical treatments, prescribed medication or hospital stays, you can still claim the credit.
How can you claim the Dependent Relative Tax Credit refund?
You can claim this tax credit by contacting a tax agent like Taxback. In case you file a self-assessed tax return, you could claim the credit by completing the Dependent Relatives’ section on your yearly tax return. If you have any questions we’re ready to answer all of them!
Why choose Taxback?
- Simple online process - no complicated forms
- Your maximum refund guaranteed - our average Irish refund is €1,880
- No refund, no fee - there’s nothing to lose by finding out how much you’re owed
- We have more than 20 years of experience - Our tax experts have already processed over ½ billion euro in refunds
- Got questions about your refund? Contact our Live Chat team anytime 24/7
The average Irish tax refund is €1,880
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