Information
Parents/guardians and people who care for dependent relatives may qualify
for the Dependent Relative Tax Credit.
Budget 2012: there will be no change in personal tax credits
in 2012.
Rules
You can claim Dependent Relative Tax Credit if you maintain at your own
expense:
- A relative, including a relative of your spouse or civil partner, who is
unable to maintain himself or herself as a result of old age or ill-health
- A widowed parent or surviving civil partner parent of either yourself or
your spouse or civil partner, irrespective of the state of his/her health
- A son or daughter of either yourself or your spouse or civil partner who
lives with you and on whose services you must depend as a result of old age
or ill health.
Health expenses and your dependent relative
Before 2007 the main value of the Dependent Relative Tax Credit lay in the
fact that you needed to claim this credit in order to claim medical
expenses for that relative. This is no longer the case, since the 2007 tax
year. If your dependent relative, or any other person for claims from the 2007
tax year onwards, incurs health expenses and you contribute to them, you may be
entitled to claim tax relief for the amount you paid. You can claim relief on
expenses like doctors' bills, maintenance or treatment in hospital, prescribed
drugs and medicines. If the person is living in an approved
nursing home and you contribute to the nursing home fees, you may also be
entitled to claim some of the expenses involved.
Rates
The value of the Dependent Relative Tax Credit depends on:
- The cost of maintaining your dependent relative - the tax credit is the
cost of maintenance up to €70 in 2012.
- If the income of your dependent relative exceeds €13,873 in 2012, no
tax credit is due (the same income limit applied in 2010 and 2011). This
figure is based on the maximum of the State Pension (Contributory) for
people over 80 plus the Living Alone Allowance plus the Island Allowance
plus €280. All of your dependent relative's income (for example, social
welfare payments, pensions and deposit interest) is taken into account for
income limit purposes.
How to apply
If you are a PAYE taxpayer and are claiming the tax credit for a dependent
relative, you should download and complete Form DR1
(pdf) or apply for the tax credit using the PAYE On-line
service. You can also write to your local tax office, outlining the tax
credit you are claiming and providing the following information:
- The name and address of your relative
- Your relative's relationship to you
- Your relative's Person Public Service number (if known)
- Your relative's age and if appropriate, the nature of his or her
incapacity
- The source or sources of your relative's income and the amount or amounts
of their income
- Details of any financial help given by others.
If you are claiming the tax credit for a son or daughter who lives with you
and on whose services you depend, you should complete Form DR2. Alternatively,
you can write to your local tax office outlining the tax credit you are
claiming and providing the following information:
- The name of your son or daughter
- Your son or daughter's Personal Public Service number, if known
- Whether your son or daughter lives with you
- Source(s) of income and amount(s) of income
- Your date of birth and the nature of your infirmity.
If you pay tax under the self-assessment system, you can claim the tax
credit by completing the "Dependent Relative" section on your annual tax
return.
