Dependent relative tax credit

Dependent relative tax credit

The tax acts provides that an individual may claim a tax credit if he or she maintains a relative or a relative of his/her spouse or civil partner at his or her own expense.

The income of this relative must not exceed a “specified amount” of €15,740 for the year of assessment 2021.

Children of the claimant will not normally qualify as a dependent relative

The tax credit of €70 for the years 2017 to 2020 was increased in Finance Act 2020 to
€245 from 2021 tax year onwards

“Maintains at his or her own expense”, for the purposes of this section, means
meeting the cost of everyday living. To qualify for the tax credit, the claimant must
substantially maintain the relative in circumstances where the relative is unable to
maintain themselves.

Any queries in regards to the above give me a call on 091 763817 or email me at oliver@taxreturhelp.ie