If the home carer’s income exceeds €6,700 in the next year, the tax credit will still be due for the year, provided that:
- the other conditions for the tax credit are met, and
- the tax credit was granted for the immediately preceding tax year.
The amount of the tax credit is restricted to the amount granted for the immediately preceding tax year. However, if the couple claim the increased standard rate band for dual income couples, the home carer’s tax credit will not be due.
Example:
A couple in a marriage or civil partnership are granted the home carer’s tax credit for 2014. In 2015 the home carer takes up employment and earns €7,000. The tax credit will still be due for 2015, provided that the increased standard rate band for dual income couples is not claimed and the other conditions for the tax credit are met
Any queries give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie