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Everything You Need to Know About the Dependent Relative Tax Credit in Ireland

You may qualify for the Dependent Relative Tax Credit if you take care for a dependent relative. However, the majority of people are not aware that they are eligible to claim this credit. The value of the credit was increased in Budget 2021 from €70 to €245.

In this complete guide, we will discuss everything you need to know about the Dependent Relative Tax Credit.

Who can qualify for the Dependent Relative Tax Credit?

You could claim this credit if you take care for a relative at your own expense. You are able to claim for your own relative or a relative of your civil partner or a spouse. 

Conditions to qualify for the Dependent Relative Tax Credit

The relative you claim for must be your own or your civil partner’s or spouse’s:

  • relative unable to take care of themselves due to old age or ill-health 

  • widowed mother or father, incapacitated or not (regardless of if the surviving parent was married or in a civil partnership)

  • child who lives with you and on whose services you depend as a result of your age or ill health

What does the credit offer?

The tax credit for 2021 is €245, which means that your tax liability is reduced by €245. For instance, if you have to pay taxes of €1000 and you claimed the tax credit, you would need to pay €755.

If you realise you are eligible for the credit, after you have paid your tax, you are able to claim the tax paid back. You could also do the same for the previous 4 tax years, which means that you could be due a refund of €280. (The tax credit for the previous years was €70).

You will not receive the tax credit if your dependent relative's income exceeds €15,740 with effect from 1 January 2021 (€15,060 for 2020).

All of your dependent relative's income is included for the income limit purposes. This includes their pensions, deposit interest and social welfare payments.

If more than one person takes care of the dependent relative, the credit is divided between them.

The average Irish tax refund is €1,880


How is caring defined?

Caring is providing full-time physical aid, but not solely. It also covers providing financial aid or part-time assistance. What’s more, the relative does not need to live with you. If you are paying for a dependent’s relative expenses like doctor bills, medical treatments, prescribed medication or hospital stays, you can still claim the credit.

How can you claim the Dependent Relative Tax Credit refund?

You can claim this tax credit by contacting a tax refund company like Taxback.com. In case you file a self-assessed tax return, you could claim the credit by completing the Dependent Relatives’ section on your yearly tax return. If you have any questions we’re ready to answer all of them!

Why choose Taxback.com?

- Simple online process - no complicated forms

 - Your maximum refund guaranteed - our average Irish refund is €1,880

- No refund, no fee - there’s nothing to lose by finding out how much you’re owed 

- We have more than 20 years of experience - Our tax experts have already processed over ½ billion euro in refunds

- Got questions about your refund? Contact our Live Chat team anytime 24/7

The average Irish tax refund is €1,880


About The Author

Kristina Valcheva - Digital content writer @ Taxback.com

Kristina is a digital content writer at Taxback.com. She has a strong interest in finance and technology, and her background is in media, journalism and sales.

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