Noone encourages families to claim the home carers’ tax credit
Tax credit for home carers increased in Budget 2016
Fine Gael Dublin Senator, Catherine Noone, has today (Monday) encouraged families to claim the home carers’ tax credit, where one spouse is staying at home to care for children or elderly relatives. Senator Noone noted that the tax credit available to home carers was increased in the recent Budget.
“Many families do not seem to be aware of the home carers’ tax credit which is available where one spouse is staying at home to care for their children or their elderly or incapacitated relatives. This is a really valuable assistance to families who wish to care for their relatives at home and it acknowledges the income many carers have to forgo income order to complete their caring work at home
“In the recent Budget, the Minister for Finance, Michael Noonan, increased the home carer tax credit in by €190 which will bring it up to €1,000 with effect from 2016. Fine Gael will continue to work to keep the economic recovery going so that we can continue to deliver improved services and opportunities for all such as this.
“Today (Tuesday) I put a question to the Minister in the Seanad in relation to this tax credit, and the most recent figures show that approximately 82,500 families claimed it in 2013 at a cost to the Exchequer of approximately €61.9 million. There must be more families who qualify for this valuable tax credit and I encourage them to avail of it.
“The tax credit is mainly available to single income families, but the home carer is allowed to earn a certain amount of income before the credit is withdrawn or reduced. The Budget changes however are designed to be of specific benefit to low-income families by increasing the income threshold below which the credit can be claimed in full from €5,080 to €7,200. It will fully taper out once the home carer’s income reaches €9,200.”