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This relief allows for tax exemption on income from childare in your own home. Gross Income < 15k and no more than three children. Can the Home Carers Credit also be claimed

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Posted by (Questions: 32, Answers: 17)
Asked on 17 May 2017 5:09 pm
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Read TCA 1997 s 466A (home carer credit and commentary). The relief is reduced if the recipient has income greater than €7,200.
The child care exemption (TCA 1997 s 216C) relief applies to income to €15,000.
The tax credit is reduced by one half of the amount by which the carer’s income exceeds €7,200.
So if the income was say €10,000, then the credit is reduced by €2,600, so €1,100 becomes NIL.
In this regard, social welfare carer’s allowance does not count as income.

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Posted by (Questions: 5, Answers: 5186)
Answered on 23 May 2017 7:24 pm