Taxes Consolidation Act 1997 section 192BA

Exemption of certain payments made or authorised by Child and Family Agency

Section 192BA exempts from income tax certain payments made or authorised by the Child and Family Agency (Tusla) or the Health Service Executive (HSE) to carers, foster parents, relatives and other qualifying persons, including young persons transitioning from care.

• Qualifying payments made to carers, foster parents, relatives and other individuals by or on behalf of Tusla or the HSE are fully exempt from income tax and Universal Social Charge (USC).
• Seven specific payment types qualify for the exemption, including the Fostering Allowance, Enhanced Fostering Allowance, Aftercare Allowance, Aftercare Additional Financial Support, Adoption Maintenance Allowance, Supported Lodgings for Children, and Supported Lodgings for Children in Care Allowance.
• The Home Sharing Host Allowance, paid by or on behalf of the HSE, is also exempt from income tax and USC.
• Equivalent payments made under the law of another EU Member State or of the United Kingdom also qualify for the exemption, and a retrospective exemption applies to payments made before 1 January 2020.