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Dependent Relative Tax Credit

October 28, 2020

What is the Dependent Relative Tax Credit?

The Dependent Relative Tax Credit is a credit you can claim for caring for your relative, or a relative of your spouse or civil partner.

 

What are the conditions to qualify for the credit?

You can claim the Dependent Relative Tax Credit for each relative you maintain at your own expense:

  • a relative of you or your spouse, where that relative is incapacitated by old age or infirmity from maintaining themselves, or
  • you or your spouse’s widowed father / mother, whether incapacitated or not, or
  • your child who resides with you and on whose services, by reason of old age or infirmity, is compelled to depend.

You cannot claim the Dependent Relative Tax Credit if your relative’s income exceeds €15,060. This ‘specified limit’ varies from year to year and is linked to the maximum rate of the Old Age Contributory Pension.

Note – There is no requirement for the dependent relative to live in Ireland to qualify for the credit. However, if you are claiming for your child on whose services you depend, that child must live in Ireland with you.

 

How much is the Dependent Relative Tax Credit worth?

For the years 2016 to 2020, the Dependent Relative Tax Credit is worth €70 for each dependent relative you have.

The value of the tax credit was increased in Budget 2021 by €175, to €245 per dependent relative.

 

How do I claim the Dependent Relative Tax Credit?

To claim the Dependent Relative Tax Credit just fill in our Full Review Form. This form will provide us with the details necessary to claim the Dependent Relative Tax Credit, along with any additional tax credits you might be due for the last 4 years.

Alternatively, you can fill out our Quick Review Form, and contact us upon completion informing us of the tax credit(s) you are looking to claim.

If you are not entitled to the Dependent Relative Tax Credit, but would still like us to review your taxes, just complete our 50-second Quick Review Form.