The Dependent Relative Tax Credit credit is just one of many you should be aware of. You could be owed hundreds worth in rebates if you have not yet claimed.
If you’re one of many people in Ireland unsure about what the dependent relative tax credit is, and how you can get your tax refund, we’re here to help. This complete guide will help you understand everything you need to know about the Dependent Relative Relief (DRR).
What is the Dependent Relative Tax Credit?
The Dependent Relative Tax Credit is a tax credit in Ireland designed to reduce the income tax liability for the year for individuals caring for dependent relatives, including parents and a relative who cannot maintain themselves due to age or illness.
It is important to note that the credit is subject to an income limit, and individuals must fulfil the conditions outlined by the Revenue Commissioners to qualify for this benefit.
How Much Is The Dependent Relative Tax Credit?
From 2021 onwards, the dependent relative tax credit is worth €245 per dependent relative. This is a 350% increase from €70 per relative in 2020. So, for example, if you have two dependent relatives, you could get a rebate of up to €490.
The Dependent Relative Tax Credit Limit
You will not receive the tax credit if your dependent relative’s income exceeds €17,404 with effect from 1 January 2024 (€16,780 for 2023).
Who Can Claim the Dependent Relative Tax Credit?
You can claim the Dependent Relative Tax Credit if you qualify for the conditions outlined by Irish tax authorities and have a specific relative who is dependent/reliant on you for financial support.
Dependent Relative Criteria:
The dependent relative must be directly related either to you or your spouse/civil partner and be any of the following:
- Unable to support themselves due to incapacity (old age or infirmity);
- Widowed father or mother;
- Surviving parent of a civil partnership;
- A child who lives with you to care for you (due to your old age or infirmity)
You can also claim the credit if you maintain, at your own expense, the widowed parent of either yourself or your spouse/civil partner, regardless of whether the parent was in a marriage or a civil partnership themselves.
The relative is not required to live in Ireland but must meet the above criteria. However, if you are claiming for your child on whose services you depend, that child must live in Ireland with you.
What Relatives Qualify?
Specific relatives who are dependent on you for financial support.
They must be directly related either to you or your spouse/civil partner and be any of the following:
- Unable to support themselves due to incapacity (old age or infirmity);
- Widowed father or mother;
- Surviving parent of a civil partnership;
- A child who lives with you to care for you (due to your old age or infirmity)
You can also claim the credit if you maintain, at your own expense, the widowed parent of either yourself or your spouse/civil partner regardless of whether the parent was in a marriage or a civil partnership themselves.
The relative is not required to live in Ireland but must meet the above criteria.
The Dependent Relative Relief Available to Claim
You can claim back tax you have already paid over the last four years if you haven’t already used the Dependent Relative’s Tax Credit. This means that if you financially supported a direct relative between 2020 and 2023, you could be due a rebate of €805.
You can claim for up to two relatives in any given year. This equals a total tax credit of €490 for the current year.
However, if your dependent relative’s personal income exceeds the following, you are ineligible for the tax credit:
2024: €17,404
2023: €16,780
2022: €16,156
2021: €15,740
2020: €15,060
What is Meant By ‘Financial Support’?
If you can demonstrate/provide evidence of financial support, such as a bank transfer, in 2021/2022/2023 (or €70 in 2020), you can claim the Dependent Relative’s Tax Credit. This support must be at your own expense, and the relative’s income must not exceed the amounts specified above.
Are There Any Other Tax Reliefs Regarding Relatives?
- If your spouse/civil partner lives abroad, you may also be eligible for additional tax credits via Aggregation Relief.
- There are 4 other tax credits for caring for people with disabilities. These include the bling persons tax credit, the home carer tax credit, the incapacitated child tax credit and the tax relief for employing a home carer.
How Do I Claim the Dependant Relative Tax Credit?
If you are a PAYE taxpayer, you can claim the dependent relative tax credit with Irish Tax Rebates!
Irish Tax Rebates have made this process easy. All that is required is the dependant’s name, date of birth, and your relationship with them through our Additional Tax Credits form.
To apply in 60-seconds, complete our online form today:
New Customers: Apply here.
Existing Customers: Apply For Additional Rebate
