What is the ‘Incapacitated Child Tax Credit’ and who can claim the tax credit?
A tax credit of €3,300 per annum is available where a claimant can prove that he/she is living at any time during the tax year with a child who is permanently incapacitated either physically or mentally from maintaining himself/herself. This tax credit can also be claimed for step-children and adopted children.
Where a child is maintained by one person only, that person is entitled to claim the full amount of the tax credit. However, where the child is maintained by more than one person, the tax credit is divided between them in proportion to the amount expended by each person towards the maintenance of the child.
What conditions must be satisfied?
In order to qualify the child must be:
• Under 18 years of age and permanently incapacitated physically or mentally, or
• If over 18 years of age at the commencement of the tax year and is permanently incapacitated either physically or mentally from maintaining himself or herself and had become so permanently incapacitated before reaching 21 years, or
• Had become so permanently incapacitated after reaching 21 years, but while he or she has been in receipt of full-time education at any university, college, school or other educational establishment, or while training full-time for a trade or profession for a minimum of two years, or
• Is a child for whom the claimant has custody of and maintains at his or her own expense and who is permanently incapacitated.
Where more than one child is permanently incapacitated, a tax credit may be claimed for each child who satisfies the conditions set out above.
What incapacities qualify?
The incapacity of the child must be such that it permanently prevents the child from being able in the long term (i.e. when over 18 years of age) to maintain himself/herself independently. If the incapacity can be corrected or relieved by the use of any treatment, device, medication or therapy then the child will not be regarded as permanently incapacitated for the purposes of this relief.
The following are examples of disabilities, which are regarded as permanently incapacitating: Cystic Fibrosis, Spina Bifida, blindness, severe and permanent deafness that affects both ears, Down Syndrome, Spastic Paralysis, certain forms of Schizophrenia, Acute Autism. This list is not exhaustive.
How can I claim the relief?
In order to claim the relief, an ‘Incapacitated Child Tax Credit’ Claim Form must be completed and forwarded to the local Revenue office.
When making the claim, the following information is required:
• child’s name
• date of birth
• nature of the incapacity
In certain circumstances where it is not obvious that the child’s incapacity is of a serious and permanent nature a doctor’s certificate should be submitted with the initial claim. In such circumstances, the doctor’s certificate should contain the following information:
• the date the incapacity first arose
•the degree and extent of incapacity
• if it is a disability other than one of those listed on above, (which are accepted as permanently incapacitating disabilities) whether the incapacity permanently prevents the child from being able in the long term to maintain himself/herself independently.
4 Year Limit
A claim for tax relief must be made within four years after the end of the tax year to which the claim relates.
The above information should be treated as a guide only. If you would like assistance with your tax affairs, please contact Coll & Co Chartered Accountants, Barna Galway. They can be contacted by phone: 091 592080 or by email: info@coll.ie.
Coll & Co, specialise in Personal tax & Pensions advice. Coll&Co, Chartered Accountants is regulated by their Institute ‘Chartered Accountants Ireland’ to provide Investment Advice. To subscribe to Coll& Co’s free monthly newsletter, go to www.coll.ie
